It can be hard to know where to start when looking for a mortgage. There are so many different types of mortgages available, and it’s difficult to know which one is right for you.
Not only is the mortgage application process long and complicated, but you also don’t want to end up with a bad deal that will cost you more money in the long run
Using an independent mortgage broker is the solution.
They can help you find the best mortgage deals on the market, assist with the paperwork, and help to speed up the application process. They can also provide expert advice on the different options, so that you can find the one that’s best suited to your needs.
What is an independent mortgage broker?
A mortgage broker is an intermediary, or middleman, who helps to match borrowers with the right lender.
They work with a wide variety of different lenders (over 100), and can help you to find the best mortgage deal that suits your needs and budget.
Mortgage brokers are fully qualified experts in the mortgage industry, and can give you impartial advice on the best mortgage deals available.
They will also help to negotiate with lenders on your behalf, and can often get you a better deal than if you were to arrange your own mortgage.
An independent mortgage broker will be regulated by the FCA and have access to over 100 lenders and thousands of different mortgage products. This is one of the many advantages of using a broker.
Do mortgage brokers charge a fee?
The different types of mortgages available
The type of mortgage that you need will depend on a few factors, such as:
- whether you are buying a home or an investment property
- the size of deposit you have
- the type of property you are buying
- whether the property is habitable
- your style of employment
- are you a first time buyer?
- will you need a guarantor?
These variables will determine what mortgage type you need and what lenders you can apply to. Occasionally a borrower will be affected by more than one of these aspects.
For example: A self-employed, first-time buyer, who has a 5% cash deposit but who also needs a guarantor to qualify for a mortgage.
This is actually quite a common situation but the number of lenders willing to help this borrower is quite small.
Borrowers also need to decide whether to go for a repayment mortgage or an interest-only mortgage.
Would a 25 year term be suitable or what about a marathon mortgage term of 30 or even 40 years.
Then there’s the choices between fixed interest rates, tracker and variable. Our interest only mortgage guide explains how it can be more difficult to secure this type of mortgage.
A whole of market mortgage broker can explain your options and then set to work getting the right mortgage from the right lender for you.
The benefits of using an independent mortgage broker
The main benefit for borrowers is the huge amount of choice a broker can provide. They can obviously deal with all of the high street lenders and large banks that people have heard of.
But there are many more niched lenders and providers of specialist mortgages that offer excellent mortgage products but are not as well known and who only deal with brokers.
BTW – Did you know some lenders offer a ‘seafarer mortgage’, for ships crew etc.
This is one of the main reasons to use a broker – they have access to mortgage deals that people simply would not be able to find themselves.
This is especially true for people who have adverse credit who might struggle to get a mortgage from a high street lender, but a broker will be able to find a suitable bad credit mortgage.
Mortgage Calculators
Get started with our free and easy to use mortgage calculators.
You will also find that brokers have a large amount of experience in dealing with lenders, surveyors, estate agents and solicitors.
This means they can provide impartial advice and guidance on more than just a mortgage.
By using a mortgage broker that specialises in certain mortgage types you will benefit from even more knowledge and expertise to help you find a great deal.
Specialist advice could be for: self-employed borrowers, buy to let, holiday let, commercial mortgages, CIS subcontractors, professionals etc.
Help and advice for complex situations
The mainstream high street lenders are very happy and competent at providing mortgages to borrowers who ‘fit’ their criteria.
They don’t have the risk appetite or experience to be dealing with clients who have more complex needs.
Luckily difficult cases are a broker’s ‘bread & butter’!
Mortgage advisers excel at solving problems, working through issues and finding lenders who offer the right solutions.
Some complex issues might relate to a person’s’ income. Perhaps they are newly self-employed, operate as a freelancer or are a trainee medical professional.
Or a diligent business owner who has significant retained profits but keeps the declared income as low as possible.
Can you get a mortgage if you only have one year of self-employed accounts?
Other times it could be the property that has a main house and 3 other cottages used as holiday lets, all listed on one title.
For example, a self-employed construction worker would struggle to qualify for a mortgage if they have been with their contractor for only a few months.
But by establishing that the worker is registered with the CIS, it’s possible to obtain a CIS mortgage, that is only available to self-employed CIS subcontractors!
A mortgage broker can ensure that a contractor can have their mortgage assessed against their gross day rate, rather than their SA302 net income.
Even the size of a mortgage will cause problems for some mainstream lenders, large mortgages over £1million are always more suited to using an intermediary.
If you need to release equity to buy another house you will find that certain lenders have caps on the extra amount they can offer. A broker can find the lender that has more generous limits, if needed.
The property itself can sometimes be the problem, so if you are buying a fixer-upper, you may find that the main lenders refuse on the basis that the house is currently uninhabitable. Equally, getting a mortgage for a flat above a shop can be harder than you might think, without a helpful broker.
What if you needed to remove someone from the mortgage, add someone new and borrow a bit more, all at the same time! Your broker will know that a transfer of equity mortgage would be the best way to do all three.
If you want to reconnect with nature, or perhaps quit the rat race, then you might need finance to buy a smallholding, or perhaps a woodland mortgage so you can own your own private wood.
Organising finance for a property with non-standard construction can also be a bit tricky. So you may need a specialist property mortgage to help with; barn conversions, churches, pubs, thatched cottages, castles (yes really!), steel framed houses and many more.
If you are considering buying a repossessed house then a broker can be invaluable. Often repossessed houses have very short completion deadlines, sometimes as little as 28 days.
So you need to have your mortgage deposit and mortgage offer in place. In addition, these properties can often need some TLC and may not immediately be habitable.
There’s generally a lending solution for most situations and a broker will work hard to find it for you.
How a mortgage broker can save you time and money
The mortgage application process can be frustratingly long and complicated.
It often involves a lot of paperwork and can be quite stressful. This is where a mortgage broker can really help. They will deal with the paperwork and liaise with the lender on your behalf.
This can save you a lot of time, effort and stress.
A good mortgage broker will also be able to save you money. They will have access to a wide range of mortgage deals, some of which will not be available on the high street.
Certain lenders have ‘broker only’ deals that are not accessible by going direct. Selecting a more competitive rate could potentially save you thousands of pounds over the term of your mortgage.
Each mortgage application that you make will create an entry on your credit report.
Subsequent lenders will be able to see these and will realise that you have probably been rejected elsewhere. Using a mortgage adviser will maximise your chances of being accepted first time, saving time and money.
How to find the best mortgage broker for you
Here are our top tips for finding the best mortgage broker:
REGULATED
All brokers must be authorised and regulated by the Financial Conduct Authority (FCA).
EXPERIENCED
They need to have a decent amount of experience, both working in the mortgage industry and also for the type of mortgage you need help with.
INDEPENDENT
You need to make sure that your broker is independent or whole of market. This means that they can approach any lender to help you. Some brokers use a panel of 5-10 lenders but this gives you very limited options.
SPECIALISTS
Depending on your needs, you may need to find a broker with specialist knowledge and experience.
ACCESSIBLE
No broker offers a 24/7 service but it will be important to work with one that has a decent admin team and staff who can keep you updated.
REPUTATION
Always work with a broker where it’s visible that they are asking clients for feedback and reviews. The good ones will easily stand out.
CONTACT A MORTGAGE BROKER
If you are ready to take the next step then we can put you in touch with a fully qualified independent mortgage broker.
