Getting a mortgage is an important part of many people's lives and can be a daunting process. A mortgage broker is someone who specialises in assisting with the whole mortgage process. They can help speed up and reduce some of the stress involved in buying or remortgaging a property by finding you the right mortgage deal to suit your needs.

Mortgage Brokers

A mortgage broker is a financial adviser who specialises in mortgages. When you contact a mortgage broker, they will discuss your financial situation with you, the property you wish to purchase or remortgage and the type of mortgage you are after, the broker will compare mortgage deals based on the information you have given. They will review all of your documents, credit report, the information provided and your overall financial circumstances to find the best deal for you, this saves having multiple credit checks added to your profile which may have a negative impact.

Each mortgage broker has a wide range of access to mortgage lenders and deals which they will compare for you to find the cheapest and most suitable deal for your personal circumstances. A broker will guide you through the whole process from your initial appointment to the completion of your property purchase/remortgage, all paperwork will be taken care of or help will be offered for documents to be completed correctly.

Most mortgage brokers will ask for a copy of your credit report before submitting a mortgage application as the lender will conduct a credit check, this is to ensure the loan approval is accurate and correct. Working with a mortgage broker will benefit you especially if you have a busy lifestyle as they will pass any updates to you from lenders and solicitors which saves you time.

Using a mortgage broker can speed up and remove some of the stress involved in the house-buying process. As mortgage brokers have access to special deals, they may also be able to get you a cheaper mortgage than you can find yourself. Some will even tell you about better mortgages you can only get direct.

A broker will do the work for you when it comes to researching and comparing deals, as some brokers like ourselves have access to every lender in the market they may be able to find you a cheaper deal than what you may discover. If you have access to better deals directly with the bank/building society, a good mortgage broker will inform you of this.

Importantly, brokers also manage your application all the way through to completion. They sort out all the paperwork and hold your hand throughout the process. Part of the point of paying for a broker is outsourcing the hassle of house-buying. This is especially true for busy people with a lot going on elsewhere in their lives.

Many mortgage brokers charge fees upfront for their services, broker fees are a set amount once agreed upon before your mortgage loan application is discussed. If you have bad credit the fee can vary as some extra work is involved, this also means the interest rates available to you may be slightly higher. Other services may be offered to you such as insurance, this can include life insurance, critical illness coverage and income protection.

Mortgage Lenders

A mortgage lender on the other hand is a financial institution that lends money to people who are looking to buy a home or remortgage their current property. The borrower will have to provide the mortgage lender with financial information, and the lender will decide whether or not they approve of the loan based on this information.

A mortgage lender is responsible for providing funds that can be used for purchasing a property or refinancing an existing loan. They may also offer advice and guidance throughout the process. However, you will need to do your own research when finding the most suitable lender for you.

Direct lenders will provide mortgage advice and support with the loan process, your mortgage loan amount, interest rate, loan terms and monthly payments will all be advised once you have supplied them with your financial information.

Each specific lender has its own criteria and if you do not meet their criteria your mortgage won't be approved and your research for the best deal will restart. If you contact the bank that you currently have an account with or any savings accounts they may offer better deals to you but this isn't always the case.

Mortgage broker vs bank

While both a mortgage broker and lender play an important role in helping you secure a home loan, it is important to understand the key differences between them so that you can make the best decision for your particular situation. The key difference is that a mortgage broker acts on your behalf to find the right mortgage deal, while a lender will provide the funds (lend money) and assess your eligibility for a loan.

Many self-employed, independent brokers have access to a variety of deals and mortgage loan options on the mortgage market and will assist you throughout the application process until your transaction completes. The homebuying process can take up a lot of your time especially if you are doing your research online. Brokers have comparison tools to research various loans and options available to you.

If you are looking for a mortgage whether this is with an independent broker (financial advisor) or any other financial institution, they will request very similar documents such as bank statements, payslips, ID or self employed documents such as business statements and tax year overviews.

Do I need a mortgage broker or shall I go direct to a mortgage lender?

In conclusion, each type of professional plays an important role in obtaining a home loan but it is important to understand the differences between them before deciding which one is best suited for your situation. A good broker can help you find a better deal and reduce the stress of house-buying, while a mortgage lender will provide the funds and assess your eligibility for a loan.

It is ultimately up to you to decide which option is best suited for your financial needs and goals. Consulting with both mortgage brokers and mortgage lenders can give you an overview of all the available options so you can make an informed decision.

If you are looking for a mortgage broker in your local area, contact us at 0151 662 0188 or email us at [email protected]