Buying a house can feel like a daunting experience. When Matt and I decided to buy our first house we both felt completely clueless. The idea of a mortgage broker was new to both of us, although we actually met with one early in our house buying process. The first estate agents we rang asked if we had spoken with anyone about finances. Often it can be a condition of arranging a house viewing (to make sure you aren’t wasting their time). So they arranged a free consultation with their in-house mortgage broker. For us, it was one of the best steps in the process and would definitely recommend to others, and here’s why:
Topics:
- Their experience
- Save you money
- Save you time
- Help with paperwork
- Find you the best deals
- Give you financial advice
1. Their Experience
It’s not every day that you buy a house and even if you’re not first time buyers the house buying process can be unfamiliar. Our broker was someone we turned to, not only for mortgage advice, but also for researching properties, guidance on making an offer, discussing the survey and asking other general questions. They are an excellent point of contact.
For more guidance on the house buying process check out my blog here!
2. Save You Money
Saving money is something that is music to my ears! Although you often have to pay for their service there are still two ways they can do this.
Firstly, mortgage brokers negotiate with lenders on your behalf, often securing more favorable interest rates and terms than you might receive directly. Since brokers work with multiple lenders, they can compare rate offerings to find the most competitive deal, potentially saving you thousands over the life of the loan.
Secondly, mortgage brokers can save you paying lender fees, which can cost in the region of £1000. Just be careful that this is a genuine deal rather than them absorbing it into the monthly mortgage payments you make.
3. Save You Time
As you can imagine there is a lot to research and organise when buying a house. If you have a job or any other commitments then buying a house can feel like a big added pressure. Hiring a broker saves you time researching mortgages, ringing lenders, sorting your mortgage in principle and completing a mortgage application. Their job is to be honest with you and only pursue mortgages that they are confident you can afford and would have approved. This can save you a lot of time and avoid frustration pursuing a house sale only to discover your application was denied.
4. Help With Paperwork
Your mortgage broker will help you with the paperwork you encounter during the house buying process. This includes things like the mortgage in principle, mortgage application, life insurance and home insurance. The first time I saw a mortgage application I had a slight panic; it was huge and at points, full of technical jargon. Thankfully our broker completed the forms with us; what might have taken us hours to do only took 10 minutes.
5. Find You The Best Deals
There are so many mortgage lenders, and usually just the big banks come to mind. However there are many others which you might not have heard of that offer better deals. Our broker did a quick search and found around 20 lenders. Many of them I didn’t recognise; some of them had lower interest rates or had deals on admin fees. There are online alternatives to do fast self-comparisons such as compare the market.
6. Give You Financial Advice
I would say this is the most important reason to use a mortgage broker. They can tell you how much you can borrow and therefore what the maximum property price you could afford. They use previous bank statements, savings, income and other loans to calculate this.
Ultimately speaking with a mortgage broker will save you time and money pursuing properties outside of your price range. If you’re struggling to secure a mortgage, or don’t think you would be eligible, speaking with a broker might be a good next step. Brokers also provide valuable insights on what lenders look for, helping you improve your chances of approval.
Final thoughts..
Working with a mortgage broker provides numerous benefits, from better rates to expert advice tailored to your financial situation. They save you time, guide you through the complexities, and connect you with lenders that align with your needs. Whether you’re a first-time buyer or a seasoned homeowner, using a mortgage broker can make the loan process smoother, more affordable, and less stressful.
