Our mortgage expert, Ben Horsfield, explains why you need to enlist professional help when it comes to your next mortgage
Buying a new home can be both exciting and intimidating at the same time. There are many facets to the house buying process where you may require advice. This could be from specialists, such as, lenders, solicitors or surveyors. In addition, there are a technical terms such as exchange of contracts, conveyancing, structural surveys that can cause confusion. It can be difficult to negotiate your way through the process.
If you are confident that your knowledge of the process is good, then you can always approach your bank direct. However, your bank will only offer you their own products and not give you access to the market.
Mortgage Intermediaries or “Brokers”, as they are more commonly known, provide a full advice and recommendation service and have access to every available lender in the market. More lenders equal more products and this greatly increases the chances of you getting a better deal than just relying on your bank.
In the UK, consumers rely heavily on the input of mortgage intermediaries with approximately 75% of mortgages being secured after taking some form of advice according to FCA commentary.
Here are some of the reasons why we would recommend that you Ask the Experts
Saving you time
Fully researching the mortgage market is both complicated and time consuming. It is unlikely that you will have the same access that a mortgage intermediary will have in terms of lenders. You can also spend an age checking the comparison websites and online magazines.
If time is at a premium then there is a good chance that you could miss any one of the details that may prove essential to you such as overpayments, or portability.
If you use a broker, you’ll be getting advice from someone who already knows the market and will spend time scouring it for the best possible deal, so you don’t have to.
Access to more products
In most cases, a good, directly authorised mortgage intermediary will be able to give you access to a much wider range of products than if you were to use either a restricted firm or even go to the lender direct.
Last month, over 500 products were pulled from the market and replaced with deals that reflect the increase in the Bank of England base rate. This trend is likely to continue over the next 6 – 9 months and means that sourcing the right mortgage has become more difficult.
Expert advice from industry recognised professionals
In the UK, all mortgage intermediaries need to meet strict governance requirements from the regulator, the Financial Conduct Authority. Mortgage Intermediaries have a duty of care to act in the clients’ best interests. This may involve sourcing a mortgage that isn’t necessarily the lowest cost, but one that, with additional features, will provide greater long-term benefit to the client and their family.
All recommendations need to be justified to the regulator as well as the client meaning that the client gets the best possible advice on every single occasion.
You could save money
In addition to time, you could also save money by using a mortgage intermediary. Not only are you getting an expert who can find a good deal, but you’re getting someone who will assess your needs and make a recommendation that is right for you financially. A good broker will also look beyond the best rate, take any applicable fees into account and also take a long-term view of your financial position
You will get support with any additional paperwork
Your mortgage intermediary will take care of the majority of the paperwork associated with a mortgage application. However, there will be some information and forms that you will need to complete. There will also be additional paperwork require for your solicitor and possibly any associated insurance. With an intermediary working closely with you, you will have someone who knows exactly what documents you will need to complete, and the timeline for completion.
Support with other essentials
In addition to mortgage advice, a good intermediary will also likely recommend that you review any existing insurance you have in place. This may be employer/employee benefits such as death in service (life protection), critical illness or income protection insurance. The aforementioned insurance products can help to ensure that you and your loved ones are taken care of should you die, be diagnosed with a critical illness or be unable to work in the medium/long-term.
This is an area that your mortgage intermediary will be able to assist you with in addition to the mortgage. They will be able to advise on the best possible scenario to suit your personal circumstances as identified through the fact-finding process.
I do hope that you have found this brief article useful and would like to reiterate that if you need any support in relation to a mortgage, or are interested in reviewing your protection requirements, please do get in touch on 0161 969 1703.
Ben Horsfield CeMap
Head of Mortgage Services
Suttons Independent Financial Advisers