Independent mortgage brokers offer an ever-increasingly important service to both borrowers and lenders.
What is an independent mortgage broker:
Independent mortgage brokers are skilled financial intermediaries offering an important service to both borrowers and lenders. Independent mortgage brokers are skilled at advising their clients on their mortgage and property debt solutions.
Generally mortgage brokers will have a few hundred relationships with lenders. These lenders may be high street banks, private banks, hedge funds, debt funds or specialist lenders, giving them access to the “whole” of the market when it comes to mortgages. When a client approaches a broker with a mortgage request, the broker will find the best lender for this request. This might mean the lender with the lowest interest rate, but it may also be the lender who can offer the most flexible lending criteria. While it is common for borrowers to approach lenders directly, there are a number of reasons to use a mortgage broker:
Lender Network: Over the course of their career, mortgage brokers have built a comprehensive network of mortgage lenders, including high street banks, challenger banks, hedge funds, debt funds and private lenders. Mortgage brokers are able to leverage this extensive network in order to ensure that their clients have access to the best lenders with the best products. While some brokers will present the same deal to hundreds of lenders, in the hopes that they will receive the best terms from one of them, a skilled mortgage broker will have an in-depth knowledge of the industry, enabling them to understand which lenders are likely to offer the best deal. Furthermore, Mortgage broker generally has a strong relationship with the lenders they work. This relationship is often crucial in ensuring that the application is successful.
Negotiation: Mortgage brokers are also able to leverage their industry experience to ensure that their client is afforded the best finance at the cheapest rate. Mortgage brokers are skilled negotiators with an in-depth understanding of the mortgage market. By leveraging on this in-depth understanding, they are able to protect their clients, ensuring that they are protected from any predatory practices and unfair mortgage rates. Moreover, they can keep their clients well informed, giving them the ability to make fully informed decisions throughout the mortgage application process.
Credit Application: During the credit application there is a lot of administrative work that needs to be done. It is crucial that the information provided to the lender is correct and compliant. In this way a mortgage broker can help ensure that the mortgage application is successful. It is commonly accepted that the work associated with a mortgage application is very time consuming and laborious. Mortgage brokers complete these applications on a regular basis and are very familiar with the administrative work that is required. In this way, mortgage broker offer their clients peace of mind in knowing that their application is in safe hands.
Expedited Process: As previously mentioned, perhaps one of the most important aspects of an independent mortgage broker is the fact that they can offer an expedited application process. Where most homebuyers will only apply for a mortgage once or twice in their lifetime, mortgage brokers have completed hundred of applications, giving them an in-depth understanding of the application process and how long it should take. Mortgage brokers are able to leverage their in depth industry knowledge, their industry relationships and their communication skills to ensure that their clients receive their mortgage funds in the shortest possible time and with the minimum amount of fuss.
When to use an independent mortgage broker:
Using an independent mortgage broker can be the difference between a successful application and an unsuccessful application. Generally speaking, for simple, vanilla transactions, where the borrower has a strong relationship with their existing bank, borrowers would be advised to approach their lender directly. On the other hand, borrowers who are unable to source a mortgage directly from their bank, or borrowers who would like to compare mortgage options, should approach a mortgage broker. Mortgage brokers can ensure that their client is presented with the best mortgage options in the market. Furthermore, borrowers with poor credit scores, or CCJs, would benefit a great deal from a mortgage broker, as mortgage brokers can access non-standard products for non-standard cases.
In conclusion, due to the fact that the mortgage market in the UK is so developer, with hundreds of lenders each offering their own products, it can be a daunting task to source the best mortgage. With this in mind, the services of a skilled mortgage broker can be vital. Mortgage brokers offer a number of different services, all of which result in the borrower getting the best and cheapest mortgage facility for their needs. It is thus important to consult with a skilled mortgage broker prior to making an application with your mortgage provider.