Mortgage Broker vs Bank

We’ll answer what are the advantages and disadvantages of a Mortgage Broker vs Bank?

And is it better to get a Mortgage from Bank or Broker?

Is it better to get Mortgage from Bank or Broker?

When it comes to choosing between Mortgage Broker Vs Bank.

If you want to ensure that you’re getting complete Advice, in the quickest possible time and the cheapest product available. Then a whole of market Mortgage Broker is the only realistic option.

Taking out a Mortgage for most, is the largest financial commitment you are ever going to make.

Getting a professional and reputable Mortgage Broker to advise and help you through the process can be invaluable.

Why this question is important

When it comes to taking out a Mortgage that could be for hundreds of thousands of pounds.

Even a slight increase in interest rate could be the difference between you paying 1,000’s of pounds more in interest over the term.

The average Mortgage in the UK is around £132,000.

See the below example which represent how even a slight change in interest rate can make a big difference to the amount that you will pay overall:

An Interest Rate of 2% and a Mortgage term of 25 years equates to a monthly repayment of £559.

If the Interest Rate was 2.5% over the same term, the monthly repayment would be £33 per month more at £592 per month.

This means paying £396 more per year in interest when compared to the above.

For that reason, it’s important to get the best Mortgage available to you.

What are the benefits of using a Mortgage Broker?

Saves you time and makes the process go smoother. Applications from Mortgage Brokers are approved quicker than those received directly.

Exclusive Mortgages deals – Most Mortgage Brokers will have access to exclusive deals only available to Brokers.

Cost effective – vast majority of Mortgage Brokers charge reasonable fees these days, and in some cases no fees at all.

Intermediary only Lenders – Some Lenders are available only through Brokers. Not all lenders provide Mortgage Advice which is a requirement before taking out most Mortgages.

Save you money – Saves you money by finding the cheapest Mortgage available to you in the quickest time.

Reduces Stress – Reduces the stress on you. A Mortgage Broker will be able to breakdown the process and take over the stressful parts.

Expertise – They know which Lenders will accept you and which won’t. What documents they will need and how best to present your application to the Lender.

Tailored Advice – they’ll provide you with individual advice for your needs and won’t put the Lenders needs a head of yours.

Boost your borrowing – They can maximise your borrowings, when needed.

Disadvantages of using a Mortgage Broker?

Cost – most Mortgage Brokers will charge. Contact 2 or 3 local, well reviewed or recommended Mortgage Brokers. Don’t always go for the cheapest, if you want the best.

Not all are independent – some Mortgage Brokers will be tied to a Bank, Building Society or Estate Agent.

Not all are whole of market – ask if they are whole of market or whether they work for a limited panel.

Direct only deals – some Lenders will offer deals only available directly through them. 

What you should look for in a Mortgage Broker?

Great reviews – We cannot stress this enough, if they’re good at what they do, there should be lots of evidence of this. This could be consistently high reviews you’ve spotted online. Or a Mortgage Broker a friend or family member has recommended. 

Whole of Market – meaning they have access to all the main and specialist Mortgage Lenders that you require.

Fair fees – If an Advisor is charging you a fee, it is more than £500 and your case is relatively straight forward. It’s probably best to move on and find a different Advisor. If you’re happy with the Advisor you have found, see if you are able to negotiate their fee down.

CeMap Qualified – They are fully CeMap qualifed, which is the bench mark for UK Mortgage Advisors.

Fully Regulated – They are regulated by the Financial Conduct Authority.

Our Mortgage Brokers

We work with a variety of Mortgage Brokers which each specialise in different Mortgage Advice areas.

When you get in touch, simply select the reason why you’re getting in touch i.e. First time buyerBad Credit, Remortgage etc. And we will match you to the Mortgage Broker which Specialises in your circumstances.

All of the Mortgage Brokers we work with are whole of market, FCA regulated, CeMap qualified, have fair fee charging policies in place and consistently great reviews.

Get in touch for a free non-obligatory conversation with one of our Specialist Mortgage Advisors for further information on how they can help you.

Get in touch for more information

Whether you’re a first time buyer or simply looking to Remortgage. Get in touch with us today, so we can put you in touch with a Mortgage Advisor which Specialises in your case.

We will only put you in touch with a Mortgage & Protection Advisor which Specialises in your individual circumstances. Your information will not be used for any other purpose.

For more information or you would just like to find out more about us, please do get in touch