When searching for a new home and beginning to think about the mortgage application process, it may cross your mind; “Why should I use a mortgage broker when my bank are offering to give me a great product anyway?”
It is sadly a common occurrence that many people do not understand the difference between the two options. In addition there are a few misconceptions about mortgage brokers which have become common financial folklore.
Here we tackle a few of the reasons why your perceptions may be incorrect, and shed some light on why using a mortgage broker could save you both time and money in the long run.
Using a mortgage broker will cost me more money
Some financial advice and professionals will often tell you to avoid mortgage brokers due to the additional fees they charge. In many cases this can be true. Many brokers will typically require a separate fee for their services. At One 77 we have prided ourselves since our inception in never charging any brokerage fees whatsoever to our clients.
Additionally, the service we offer includes things you would not otherwise benefit from if you were to apply directly through your bank or present lender that can save you a substantial amount of time and money. Our feedback and reviews suggest that in the majority of cases those who have worked with us as their broker feel they received a better overall deal and service when all factors were taken into consideration.
Many brokers will obtain the fees for their services by charging customers an up-front fee, and in many cases they will get money from both you and the lender. We don’t believe this is fair and at One 77 we will never charge our clients a fee for using our services. We only collect the commission payment from the lender you secure your mortgage with. You should always check any fees you are paying to ensure that you are not paying for services which have already been paid for by other means. We are completely transparent at One 77 and you can be assured that at no time will we charge you for our services and advice.
Mortgage brokers add little value to the process
It is often thought that mortgage brokers are not able to provide much added value to the application process, though this is far from the case. As opposed to an online quotation or an off the shelf product, a broker’s main objective should be to find you the most affordable product that works well with your unique circumstances, needs and goals.
The mortgage market consists of multiple lenders offering multiple products. A One 77 broker will spend time scouring and researching the mortgage market in order to provide you with a recommendation best suited to your needs. Furthermore, our mortgage service continues right through from initial enquiry to completion and beyond. Your One 77 broker will be able to assist with any queries, questions, paperwork issues and more in order to make the application process as stress free as possible. Plus, when it comes time to review and renew your mortgage product your broker will make contact with you well in advance to ensure you again get the best deal possible.
Mortgage brokers work for banks and lenders
One 77 Mortgages are a completely independent brokerage service. Though we have built strong relationships with a large number of banks and lenders, we remain completely detached from any exclusivity or bias when researching a product for a client. We always aim to remain focussed on the needs of our clients and negotiate solely on their behalf to ensure their needs are met.
A mortgage broker cannot help me, as I have bad credit
Having a poor credit history can often be seen as having a negative impact on your ability to obtain a mortgage. However, though the range of lenders and products available to you may be reduced, you should not give up hope. If you have been rejected by a lender due to past bad credit issues, a mortgage broker may be able to help. Due to the wide network of lenders we work with, we will search the mortgage market to see if there is a product out there for you or provide with the advice to get your credit back in check.
I don’t need a mortgage broker. My bank have promised me the best rate possible
As a loyal customer your bank should reward you with the best mortgage rate possible? As much as we would like to believe this to be the case, it is invariably not. Sadly, many banks will not shop around for you and simply offer you the nearest ‘off the shelf’ product they have that fits their limited overview of your circumstances. By using a broker you will not only have access to the rest of the mortgage market, but using their expertise and knowledge they can sometimes access better rates even from your current lender or bank. As our services are offered completely fee free, we always ask: what do you have to lose? Also, we believe that your relationship with One 77 is one for life. Once you have been assigned a broker they will work with you for as long as we have a relationship. No call centres, no waiting times, no menus – straight through to your dedicated broker first time, every time.
Whether you are applying for your first mortgage or looking for a remortgage if you choose to work directly with a lender, keep in mind that you should plan to spend ample time shopping around to find the best deal on your loan and you will only have access to a very limited amount of products. In addition you should ensure that you are well versed in translating mortgage terms and concepts.
However, should you wish to have a qualified and experienced broker undertake the search and negotiation work for you to find you the best product for your personal circumstances, then please do give us a call…. Again, what do you have to lose?
To speak to an adviser free of charge with no obligation, call us today on 01249 474952 or complete the form below and we will be in touch.