Things to Know About a Mortgage Broker
A mortgage is a massive financial commitment, so by hiring the services of a mortgage broker you could stand to make some savings, not to mention getting a mortgage that is best suited for your situation.
Here are some useful things to know about a mortgage broker before you hire one!
They use many factors to find you a mortgage
A mortgage broker recommends specific mortgages based on your personal circumstances. They use various factors to determine what mortgages are suitable, then using the information to find the best deal possible.
Factors that they will consider include:
- Deposit amount
- Total monthly repayments
- Credit history
- Interest rates
There different types of mortgage brokers
While mortgage brokers are all financial advisors that specialise in mortgages, there are several types available. For instance, an independent mortgage broker is known as a whole of market broker, essentially meaning they use the entire market and are not committed to one or several organisations.
Tied or multi-tied brokers have close links to certain lenders, meaning they don’t use the entire market but could have access to less widely available deals due to their working relationship with said originations.
Fees are charged in different ways
Mortgage brokers have different ways of charging for their services. In most cases, this is done through a commission, typically charging 1% of the mortgage amount, while lenders often provide a commission on top of this.
Other brokers charge a flat rate, usually starting at around £500, and they should always provide a clear indication of what is included for this fee.
Both have their merits, so be sure to determine how your broker is charging you!