What is a mortgage broker?
What is a mortgage broker? I thought putting together this blog post would help you understand what a mortgage broker is, our business and what we do. The first thing I would like to say is being a mortgage broker is an amazing job, we help our clients purchase or remortgage their homes and get to know them personally which is very rewarding. Many of our clients have been with us for years and we have been recommended to their friends and families which feels great.
We often get asked questions like:
- What is a mortgage broker?
- What does a mortgage broker do?
- Are all mortgage brokers the same?
- What are the advantages of using a mortgage broker?
- Is there anything I should be wary of when choosing a mortgage broker?
- How does a mortgage broker make money?
- How much do mortgage brokers charge?
What do mortgage brokers do?
A mortgage brokers main job is to find the best mortgage deal they can, and then show you the different ways you can protect that mortgage.
Mortgage brokers can also be known as mortgage advisers.
Are all mortgage brokers the same?
No, like any profession there are differences. People are an important part of any business, as is culture and leadership. Also, different companies offer different mortgages and insurance products.
For instance:
- Tied mortgage brokers will generally deal with a small panel or mortgage and insurance providers.
- ‘Whole of market’ brokers will deal with most of the lenders in the UK but not all of them. There are some lenders that don’t work with mortgage brokers, so their products are only available direct.
What are the advantages of using a broker over your bank?
- Brokers tend to offer a larger range of mortgage products.
- Mortgage brokers offer advice based on your circumstances.
- Brokers tend to offer a larger range of insurance products.
- Mortgage brokers offer a more personal service.
Is there anything I should be wary of when choosing a broker?
Like any business there are good and bad brokers. It is important to ask your broker how many different mortgage lenders and insurance providers they can source from. Also, they should disclose any fees they may charge at the start of the process.
Other things to be aware of are:
- Brokers shouldn’t insist you take insurance products as part of the mortgage.
- Estate agents and new homes companies can’t insist that you use their in-house mortgage broker as part of a sale or purchase transaction.
- You always have a choice.
Who regulates mortgage brokers?
Mortgage brokers are regulated by the Financial Conduct Authority.
How does a broker make money?
Brokers make their money from charging their clients a fee. They will also receive commission from the mortgage lender, for introducing a new mortgage customer.
How much do brokers charge?
Most mortgage advisers will charge a fixed fee. Some of this fee is usually paid up front and the rest is usually paid upon mortgage offer or completion of the purchase or remortgage.
If you are looking for a mortgage broker we would love to hear from you.
Get in touch hello@mortgageplus.co.uk or 0330 400 42 42
If you would like to find out a bit more about the different types of mortgages click on the links below:
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR MORTGAGE.