What is a Mortgage Broker?

what is a mortgage broker

YesCanDo Money is an FCA-approved, fee-free mortgage broker serving customers throughout the UK. But what exactly is a mortgage broker?

Put simply, a mortgage broker is a company that can help borrowers get the best deal on a mortgage. If you’re looking to buy a house or if you want to remortgage, the broker will find out more about your financial circumstances and will explain the types of mortgages that are right for you.

When choosing a broker, you have a choice of:

  • Tied or multi-tied brokers
  • Whole of market mortgage brokers

Tied and multi-tied brokers work with a single lender or a small number of lenders and therefore, don’t always have access to the best deals on the market.

Whole of market brokers are less limited as they have access to a much larger group of mortgage lenders. As such, they can access the best deals available. YesCanDo Money is a whole of market mortgage broker.

Keep reading to learn more and get in touch with a mortgage adviser at YesCanDo if you would like more information about any of our mortgage services.

What is the Role of a Mortgage Broker?

Finding the right mortgage can be a daunting prospect for first-time buyers and seasoned home movers alike. This is where a broker comes in. Their primary goal is to help customers find an excellent mortgage, with an affordable interest rate and reasonable payment period.

The mortgage adviser will:

Compare mortgage deals

There are thousands of mortgages on the market and mortgage brokers will compare each one before they recommend certain types of mortgages to their customers. These include exclusive deals as brokers that cover the whole market often have access to deals that customers can’t find online or on the high street.

Offer mortgage advice

It is the responsibility of the mortgage adviser to assess their customers’ financial situation before giving mortgage advice. After doing so, the customer will become aware of all the mortgage options that are relevant to them and will be less likely to choose a product that could put them in financial jeopardy.

Complete the mortgage application

Customers don’t need to handle the mortgage application alone. Their mortgage adviser will gather the paperwork from them and will handle all other aspects related to the application. They will then liaise with the lender and other relevant parties until the mortgage has been authorised and completed.

Why Use a Mortgage Broker?

A specialist broker can access direct deals on the market that may be subject to special rates and discounts. They can also access specialist mortgages for people with exceptional circumstances, such as those who are self-employed or who have a poor credit history.

A mortgage broker’s job is to make their customers lives easier. They will compare mortgages, manage the application process, liaise with mortgage lenders, estate agents, and solicitors, and do many other things on their customers’ behalf.

Independent mortgage brokers also offer impartial advice so customers won’t be swayed into getting a deal that isn’t right for them.

In short, mortgage brokers can save customers both time and money and they can take away the stress of getting a great new mortgage. To learn more, browse our website and get in touch with our friendly team if you would like the services of an expert mortgage adviser.

Why Use a Mortgage Broker Instead of a Bank?

If your bank is advertising attractive mortgage deals, surely it’s easier to go directly to them rather than use the services of a broker, right? Not necessarily!

If you choose to use the services of a reputable broker, you can expect:

Better deals

While the deal your bank is offering may indeed be a good one, there is every chance that you could find a much better deal elsewhere. When you choose to use the services of a broker, your mortgage adviser will compare every deal on the UK market until they find something that will perfectly suit your needs.

So, while you could decide to use your bank if you like what they are offering, be aware that you might end up kicking yourself later when you hear of a much better mortgage deal elsewhere.

More savings

Banks will often lure their customers in with low-interest rates. As such, customers assume they will save money when using the bank in question. However, there are other variables to consider such as fees and down payments so, in reality, the customer might not make as many savings as they expected.

This is where the services of a qualified mortgage adviser can come in useful. They have an understanding of the different types of mortgage costs and will take these into account when finding their customers the best mortgage deal.

A successful mortgage application

Borrowing money from a bank isn’t always easy. It’s not as simple as making an application and waiting for the funds to roll into your bank account. In some cases, your loan application could be turned down as banks use set criteria when deciding whether or not to give somebody a mortgage. Therefore, you could get your hopes up only to have them dashed again if the bank says no!

A mortgage adviser can minimise this risk. Not only will they advise you on what you need to do to improve your chances of getting accepted, but they will also consider the specific lenders that are more likely to accept your application.

Go with what’s best for you

Ultimately, the choice is yours. You could go directly to a bank (or building society) and apply for a mortgage loan. However, you might miss out on better deals elsewhere. To ensure this doesn’t happen, the better option is to use the services of a brokerage firm as a professional mortgage adviser can pinpoint the deals that are better for your financial and personal circumstances.

Pros and Cons of Using a Mortgage Broker

 

Benefits of Using a Mortgage Broker

Reduced Hassle

A lot of time and effort can be spent when searching for mortgages, completing mortgage applications, and speaking to lenders. You can cut through this hassle by using the services of professional mortgage advisers who will do all of this for you.

Expertise

If you don’t have a good knowledge of personal finance, the mortgage market, and the reasons behind fluctuating bank rates, you might end up with a mortgage deal that isn’t right for you. Mortgage brokers act as independent financial advisers so can explain in clear terms the steps you need to take to improve your chances of receiving the most affordable mortgage offers.

Independent Mortgage Brokers have access to better deals

Due to their mortgage contacts, whole of market brokers can often access better deals than those that are being advertised locally. For you, this can mean significant savings in both the short and long term.

Drawbacks of Using a Mortgage Broker

Mortgage Broker Fees

Some mortgage brokers charge their customers a fee for their services. After all, they need to be paid somehow so it’s understandable that they will bill their customers for their time. The fee can vary between 0.3% to 1% of the loan size but should never be more than this. If the mortgage was worth £150,000, for example, the fee would be £450 if charged at 0.3%.

Before you decide on a brokerage firm, you should always ask them about their fee structure before using their services. This will ensure you don’t end up with yet another surprise expense associated with property ownership.

However, not all mortgage brokers charge their customers a fee. Some receive a commission from the mortgage lender so they are able to offer their services to customers for free.

YesCanDo is a FEE-FREE mortgage broker. Therefore, you will not be charged for any of our services. So, not only will you save money via the mortgage rates and deals that we can access for you, but you will also make savings when you choose to use our services as you won’t be charged any hidden or upfront fees.

Fee Free Mortgage Advisor Team

How YesCanDo Money Can Help

If you are currently trying to find a mortgage broker, get in touch with our team. We have one primary aim: to recommend mortgages that are right for your personal and financial situation.

Experienced mortgage advisors

Our team of expert mortgage advisers has helped thousands of people like you, so if you need independent advice, be you a first-time buyer, seasoned home mover, landlord, or somebody looking to remortgage, WE ARE HERE FOR YOU!!

We do everything for you, for free

Our experienced team of mortgage advisers will search the whole market for a deal that you will be pleased with. They will manage your mortgage application and help you gather up all the paperwork that is needed for it. And they will liaise with your mortgage lender, solicitor, estate agent, and other relevant bodies to save you time and effort. They will do all of this and more for FREE so you don’t have to worry about any expensive fees.

Browse our website to find out more about our mortgage brokerage services and get in touch with us today if you require our specialist mortgage advice.

MORTGAGES: WE'LL DO IT ALL FOR YOU

YesCanDo mortgage advisors do it all for you! The advice, the application, all the paperwork, the bank and solicitor chasing, and take away the stress. Plus we’re fee-free.
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Steve Roberts
Steve Roberts

Stephen Roberts MAQ is the founder of YesCanDo Money, Hampshire's largest no-fee mortgage brokers. With over 30 years of mortgage experience, he has advised and helped thousands of First-time buyers buy their first home and home movers buy their dream home. Speak to a mortgage expert today by completing our contact form:

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