In the United Kingdom, there is huge importance placed on owning your own home. It’s something that the majority of Britons strive for. While other European countries place far less importance on owning a property, here, it’s the “done thing”.
So, buying your first home is a significant milestone in most people’s lives. But it can be a hugely daunting task. From saving for the deposit, then choosing the type of mortgage you want and which lender to go with, all the way to putting offers in on houses and dealing with solicitors. If you’re not familiar with it, the process can seem a lot like an uphill battle. A mortgage broker can be a valuable tool in the first-time buyers’ armour, as they can help navigate the complex mortgage market, answer the hundreds of questions that you probably have and even liaise with estate agents and solicitors for you. The knowledge that a broker can bring to the table is invaluable, and here I’ll delve into just a few reasons for you to really consider using a broker.
First things first, what is a mortgage broker?
A mortgage broker is basically an intermediary between borrowers and lenders. They will assess your situation and make a recommendation and deal with the lenders on your behalf. A mortgage broker is usually very used to working with clients and the mortgage market, so is well placed to give advice, answer questions and generally help. A mortgage broker will have taken exams, must study a certain amount every year to keep up to date with criteria, regulation, the market etc and above all else, will help people navigate the mortgage process day in, day out.
Whole of Market
One of the primary reasons to a use a broker is the fact they can access multiple lenders, unlike banks and other lenders who can only offer their own products. If you make sure you use what’s commonly termed as a ‘whole of market’ broker, and they’ll have upwards of 70/80 lenders at their disposal. This means, they will look at your situation, shop around (when I say that, I actually mean research your circumstances, the lenders criteria and study sourcing systems based on your individual needs) and recommend the cheapest lender available for your circumstances. You won’t be wasting your time going to lender after lender trying to find one that is best suited to you.
Knowledge
Another reason to use a broker is they will help you understand the different types of mortgages available to you and make decisions that will be best for your situation. Do you want Capital Repayment or Interest Only? What about a Discounted Interest Rate, Tracker, or Fixed Rate? Have you thought about the term of the mortgage or potential early repayment charges? What about cashback? Also, all lenders have different criteria about who they’ll lend to, what income they’ll use, what properties they’ll lend on etc. A brokers job is to know or to be able to find out this criteria, saving you a lot of time, stress and hassle in doing the job for yourself. All these things are second nature to brokers and they will help you understand everything so you can make informed decisions.
Process
For me personally, a big reason to use us is for our help navigating the whole process. A good mortgage broker can help you from the start, which sometimes means giving you advice months before you’re actually ready to buy a home. Initially, they can help you put a plan in place in regard to knowing how much money you’ll need to save, any things you can do to improve your credit profile and how long things are going to take. They can even help you with advice about any potential properties you might like and how much to offer and also recommend solicitors if you haven’t got one already. They’ll make themselves available for you throughout the process to explain everything and answer questions. Then, when it comes to the mortgage application, they’ll deal with the banks underwriters for you to make things as stress free as possible. And once your mortgage application has been approved and the offer issued, they’ll stay in touch with your solicitors and make sure everything is on track for a timely completion.
Flexibility
Mortgage brokers are also flexible. They can often set their own work hours so can be available in the evenings and weekends if necessary. You also won’t be waiting weeks for an appointment to see an advisor at your bank. Most brokers will also be flexible in how they deal with you. Gone are the days when you need to do everything face to face. You can now utilise zoom, the phone, the internet and even WhatsApp to deal with your broker. This opens up being able to deal with someone who is working at the other end of your country. Don’t get me wrong, you may still want to deal with a broker face to face, in your local area, and there are plenty who will be available to do that. But it’s not totally necessary anymore as we head into 2023.
In summary, using a mortgage broker is a smart decision for first time buyers. A mortgage broker can help make the process manageable and seem less daunting and stressful. By working with a broker, first time buyers can ensure they are getting the correct advice for their individual circumstances, and they understand all the terms and conditions before they sign for the biggest purchase of their lives.
