Before searching for local mortgage brokers, it is best to understand what a mortgage broker does. You could go into your bank and ask them to arrange a mortgage for you, and they will do this happily if you meet their criteria. But because you are their customer does not guarantee the best rates, as they will only offer you their own products. A mortgage broker in the UK can access multiple lenders and, using their knowledge, can potentially save you money with better rates and terms.
So what are people looking for when they search for a good mortgage broker?
People’s searches can be concentrated on five simple needs:
- Saving money
- Trust
- Experience
- Fee transparency
- Face-to-face or remote advice
Saving Money
The main reason to find a mortgage advisor is to save money.
You already understand that every lender has different criteria and “preferred” clients they want to lend to. You can approach them yourselves, but there are negatives to doing this.
- Time – approaching multiple lenders by filling in their application forms is time-consuming and tedious.
- Credit rating – multiple applications and credit searches for lending can harm your credit rating.
- Market knowledge – a lack of market knowledge may mean approaching the wrong lenders for your situation.
Once you find a mortgage advisor, they will be aware of current market conditions, which lenders have the best deals, which are most flexible and most of all, which are the best fit for you. The headline interest rate is not everything when it comes to mortgages. Which type of mortgage, repayment, interest-only, flexible, discount, tracker or one of the many other options could better fit your requirements?
Trust
When people search to find mortgage brokers, they put their financial future in someone else’s hands. But this is no longer guesswork.
One of the significant advances due to the internet is the ease with which you can find out about a business through reviews. It is evident that a mortgage broker who is highly rated will most likely provide you with excellent service and be a pleasure to work with, as opposed to a low-ranking business. Reading the reviews is also helpful in understanding the process better. What points did other people have issues with?
Under FCA guidelines, your mortgage broker should always have your best interests at heart, focusing on the best deal for you, not the most profitable one for them.
Experience
Your mortgage advisor needs to be experienced and be trading for a reasonable amount of time.
Reviews will show how long ago they first got evaluated by customers. If they have managed to keep customers happy for an extended time, it shows they carry the knowledge and experience to meet their needs.
Fee Transparency
Mortgage brokers need to make money – a concern for people when searching for a mortgage broker is how they “pay” for the service. Every mortgage broker has a unique pricing structure, and fees can vary greatly.
A mortgage broker will explain how their fees are calculated in their first meeting with you, as this is a legal requirement. All brokers receive a procuration fee (commission) from the lender, but some charge a broker fee as well.
Most brokers charge around £300-1,000, whilst others do not charge mortgage applicants fees. Mortgage broker fees can vary based on the complexity of your circumstances and can be a flat fee or a percentage of the loan amount. Some applications may require more effort and time than others to complete.
Some mortgage brokers will provide additional services that you wouldn’t expect if you went direct to a lender. Your broker is working for you and will often engage in other tasks to ensure your transaction goes smoothly, such as:
- Communicating with your estate agent
- Liaising with your conveyancer
- Ensuring mortgage underwriters are satisfied
- Keeping you informed at every stage
- Fighting your corner when needed
Face-to-face or remote advice
Some brokers provide mortgage advice online and over the phone, and others advise customers face-to-face. You can check reviews and decide which option works better for you. You can determine whether you’re happy to save time by dealing with someone online or over the phone, or whether you require a face-to-face meeting with your broker. You can receive an excellent level of service using either option.
Most brokers charge around £300-1,000, whilst others do not charge mortgage applicants fees. Mortgage broker fees can vary based on the complexity of your circumstances. Some applications may require more effort and time than others to complete.
Looking for the Best Mortgage Advisers?
When people search for a good mortgage broker, they are usually looking for experience, clear advice, and someone they can trust to guide them through the process. Our guide to the best mortgage advisers in the UK brings together firms that stand out for service quality, expertise, and their ability to support a wide range of borrower needs.
If you want to compare leading advisers and see which firms are highly rated for helping buyers, movers, and remortgagers, this guide is a useful place to start.
