Should you use a mortgage advisor and broker?

Since the housing market reopened after 2020’s COVID-19 lockdown 1.0, it’s seen a lot of activity. Many people decided to sell up and move, which left many people also searching for the right mortgage.

If you are looking for a mortgage, you might be wondering whether you should talk to a mortgage advisor and broker, or go directly to the lender. What are the benefits and how much difference does it actually make in finding a good deal?

Firstly, what does a mortgage advisor and broker do?

A qualified mortgage advisor and broker is essentially someone who specialises in all things mortgages. With an in-depth understanding of the market and different lenders, they work with you to find you the right mortgage deal to suit your budget and circumstances.

They base their recommendations on factors such as the size of your deposit, your monthly repayment preferences, interest rates and personal information such as your credit history and outgoings.

There are a few different types of mortgage advisors and brokers. The main three you might come across are:

Tied brokers – usually recommended by a particular mortgage lender, as they offer deals only from that provider
Multi-tied brokers – offer a range of mortgages from a panel of mortgage lenders
Independent brokers – also known as ‘whole-of-market’ brokers, scan the entire mortgage market to find the best product for you

Benefits of using a mortgage advisor and broker

There’s a reason why so many people turn to mortgage advisors and brokers when buying and/or selling a house. The mortgage market can be a fairly complex place. There’s a lot to get your head around, and a lot of jargon to learn. A good mortgage broker will hold your hand, so to speak, and guide you through every step of the process.

Their market knowledge can be invaluable in avoiding getting tied into any unsuitable deals, and they also may have access to deals that might not be available to you if you went straight to a lender.

Because a mortgage advisor and broker will aim to find you the best mortgage deal and lender for your circumstances, they could potentially save you thousands of pounds over the term of your mortgage. They can calculate when it’s worth paying a high arrangement fee for a particular mortgage, or when a fee-fee deal is better value.

Lastly, it just makes everything easier. Buying and/or selling a house can be stressful anyway.

There’s a lot to juggle, what with finances, solicitors and packing. Having an expert on your side to handle the mortgage side of things can be invaluable. A mortgage advisor and broker will complete the paperwork for your mortgage application, and will track it’s progress once submitted, saving you time and headaches. In summary, they aim to make the process as smooth as possible for you.

Are there any disadvantages?

As with anything, there can be disadvantages to using a mortgage advisor and broker. It often comes at a cost with many charging a fee for their work, but they should always tell you what this is up front before you hire them, so that you can agree and factor this into your overall budget.