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Mortgage bankers Vs mortgage brokers: why use a mortgage broker?

Does giving up a day of your time to sit in an office or bank, answering questions and filling out paperwork sound like your idea of fun? No. Ours neither.

Most people assume that getting a mortgage means heading straight to your bank but unfortunately, this can mean missing out on the right deal for your needs. It’s a bit like looking for car insurance - you want to take a look at what everyone has to offer first rather than just going with what you know. The problem is, it’s not always clear where to look. And that’s where a mortgage broker comes in.

What does a mortgage broker do?

There seems to be a misconception of what mortgage brokers actually do. Ultimately, it’s a mortgage broker’s job to find you the right mortgage for your needs, and here’s how we can help you do just that.

1. Assess your requirements with a simple chat
As mortgage brokers, we start by arranging one of our expert mortgage advisers to assess your requirements. This includes listening to your needs, looking into your current financial situation and taking the time to understand your personal circumstances. Because we understand that your time and money are precious.

2. Make recommendations that put your needs first
Once we’ve assessed your situation, we go away and search the market. Using our nationwide contacts we then come up with a product recommendation for you. At Mortgage Advice Bureau, we work with over 90 different lenders - so you aren’t restricted to just one bank or building society’s criteria. Having this flexibility means you’ll have much more choice and can find the mortgage deal that’s right for you.

3. Deal with the application, so you don’t have to worry
Once you’ve decided on a mortgage product, you can leave the rest in our hands - it’s that simple. You don’t have to waste any of your time filling out paperwork - we manage the whole application process for you. So you can be left to concentrate on what really matters; whether that’s planning the move or creating new boards on Pinterest for your dream decor!

Why should you use a mortgage broker?

With a better understanding of what a mortgage broker actually does, the next question is obvious: should you use a mortgage broker? Although there are positives to going straight to a bank, many home buyers find that it is better to use a mortgage broker for the following reasons.

A mortgage broker can save you money

We aim to make sure you never pay more than you need to. We do this by assessing your financial situation, and making sure you’re on the right mortgage deal for your needs. If you aren’t, we recommend what we think could be better for you. We work with over 90 different lenders, giving us the flexibility to offer you a range of products. If one lender rejects your application, we’ll try another one. We also have access to exclusive deals that aren’t available on the high street which, again, gives you more variety.

They can also save you time

We understand that life is busy, so we like to offer our customers flexibility when it comes to appointments. Our advisers offer evening and weekend appointments, both face to face or over the phone, so you don’t have to worry if you don’t have the time to see us, we can get all the information we need with a phone call.

Some mortgage brokers can help you find mortgage protection too

Not only will we make sure you get the right mortgage for your needs, we’ll be there for you long after you get the keys to your new home. Not sure if you need life insurance? We offer advice on various kinds of mortgage protection - including critical illness cover, income protection, buildings and contents insurance. We want to make sure that, if the worst was to happen, you’d be able to stay in your home and your loved ones would be looked after.

No mortgage advice is ‘free’, but a broker can give you value for your money

Mortgage brokers earn money on commissions paid by lenders. This means that even “free mortgage advice” is still paid for in one form or another. Some mortgage brokers may also charge a fee. For Mortgage Advice Bureau, charging fees allows us to spend more time advising you, supporting you throughout your application and means our advice can be wholly focused on your needs, rather than dependant upon the value of the lender commissions.

After all, a mortgage is probably the biggest investment you’ve ever made, so it makes sense to know you’re getting the right deal.

Still wondering why you shouldn’t just go to a bank?

Many people choose to use a bank or building society over a mortgage broker, simply because they prefer to stick to what they know. Others feel like they need to remain loyal to their bank - perhaps you’ve banked with them for years and like going in and seeing a friendly face. If you have banked with a particular bank for many years, you might find they offer a discount if you take out a mortgage with them, which also might help sway your decision.

Just be aware that by going direct to a bank you’ll be limiting yourself to one lender. You might find this is fine and they offer you a product that you’re more than happy to go with. However, if you feel like what they’re offering doesn’t quite fit the bill for you, then maybe that’s the time to get in touch with a mortgage broker who has access to a wider range of products.

Which one is better for you?

Everybody is different and there is no right or wrong way to go about getting a mortgage. We can’t tell you which route you should take, but if you want to learn a bit more about Mortgage Advice Bureau and have a quick chat, please feel free to get in touch with us today and we’ll be more than happy to talk with you.

Because we play by the book we want to tell you that…

Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

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