What does a mortgage broker do?
And do you need one? Let’s find out.
Last updated on
Jun 13, 2022 13:15
A mortgage broker is like a matchmaker. They connect people who want to borrow money to buy a home, to the lenders who can lend that money. They can also help you with admin, advice, and support.
A broker can help you:
And/or
Here’s the lowdown on what mortgage brokers do, and whether you should get one on board to help you through the home-buying process.
A mortgage broker’s job is to help you find the best deal on a mortgage – and then help you secure it.
They’ll work with you to do some (or all) of the following:
If you don’t use a mortgage broker, your other option is to go directly to a bank or lender yourself. Banks typically have advisers who can give you mortgage advice – but it’s important to remember that they’re operating in the interests of the bank and may not offer you the same range of options.
The answer, in most cases, is yes.
Mortgage brokers are regulated by the Financial Conduct Authority (FCA) which means there are standards they have to adhere to:
Because brokers are regulated, you also have some protection if you receive poor advice.
A good mortgage broker will be able to:
It might be especially worthwhile to go for a mortgage broker if you’re a first-time buyer, or if you're still building your knowledge of financial markets, and how it all works. But even if you’re a pro, having a second pair of expert eyes on mortgage deals is always a good idea.
If you feel happy with the research you’ve done and have found a good deal, or if you think it will be easier to just go with your current bank, you can absolutely go for it.
Alternatively, you can keep your options open while you search for the best deal. You can always weigh up what you’re able to find on your own with the deals a mortgage broker can offer you. That approach could be the best of both worlds, even if it’s much more time-consuming.
What you won’t get if you go it alone is advice and expertise tailored to you and your situation, should you need it, at any stage of the mortgage process. You also might not get access to all the deals a mortgage broker can provide.
Buying a home is a big legal and financial deal – and going with a broker who has the expertise to help you navigate your way through can help save you costly headaches down the line.
Brokers can also help speed up the application process so that you can prevent delays along the way.
Mortgage broker fees vary from company to company and broker to broker. Some are more expensive than others. Others – like us at Habito! – are free.
There are different ways brokers make money. Every broker gets a commission from lenders when they arrange a mortgage with them, but some charge fees on top.
All mortgage brokers should be upfront about how they charge for their advice and the type of advice you’ll be receiving.
Here are some key questions to ask:
Some brokers are tied – meaning they have to choose products from one lender – or multi-tied, where they have to choose from a select few.
If you’re ready to explore your mortgage options, we’re happy to help.
Habito’s mortgage brokers are qualified experts who can support you every step of the way. We’re independent and whole of market, searching through thousands of deals from over 90 lenders. Plus, we’re completely free.
If you’d like our advice on your mortgage journey, you can get started here.
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Habito specialises in helping you get the best mortgage or remortgage, all online, for free