Is It Better to Use a Mortgage Broker or Go Directly to a Bank?
Using a mortgage broker can give you access to a wider range of mortgage options than approaching a single bank directly. A bank can usually only offer its own mortgage products, while a mortgage broker can compare deals from multiple lenders and help identify lenders whose criteria suit your circumstances.
Whether a broker or bank is right for you will depend on your individual situation and the type of mortgage you need.
What is the difference between a mortgage broker and a bank?
When you approach a bank directly, its mortgage adviser can discuss the mortgage products available from that bank.
A mortgage broker can compare mortgages from a range of different lenders. This can be particularly useful because mortgage lenders don’t all use the same affordability calculations or lending criteria.
Being accepted by one lender doesn’t necessarily mean you’ll be accepted by another — and the mortgage offering the lowest advertised rate isn’t always the most suitable option once fees and eligibility are considered.
Can a mortgage broker get better mortgage deals?
A mortgage broker can search across multiple lenders rather than being restricted to the products offered by one bank.
The mortgage available to you will depend on factors including your income, deposit, credit history, property and individual circumstances.
Some mortgage products may also only be available through intermediaries, while others can be available directly from lenders.
Can a mortgage broker help reduce the risk of being declined?
A broker can assess your circumstances before recommending a lender and mortgage.
This can be useful because lenders have different criteria for areas such as self-employed income, overtime, bonuses, credit history and the amount they’re prepared to lend.
Understanding those differences can help identify lenders whose criteria are appropriate before making a full mortgage application.
Do mortgage brokers charge a fee?
Some mortgage brokers charge customers a fee for their advice, while others receive payment from the mortgage lender.
It’s worth checking how a broker charges before proceeding and whether there could be fees at different stages of the mortgage process.
Should I speak to a mortgage broker before viewing properties?
You don’t have to, but speaking to a mortgage adviser early can help you understand how much you may be able to borrow and what your monthly mortgage payments could look like.
A broker can also help arrange a Mortgage in Principle, which can give you a clearer idea of your potential borrowing before you make an offer on a property.
Looking for a mortgage broker?
At GHL Direct, we compare thousands of mortgage deals from more than 50 UK lenders. You’ll have a dedicated mortgage adviser to help you from your initial enquiry through to completion, with appointments available seven days a week.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
