A mortgage broker is a financial adviser who offers advice to those specifically looking to take out a mortgage. When purchasing a property, using a mortgage broker is highly recommended and could save you a lot of time and money.
THE BENEFITS OF WORKING WITH A MORTGAGE BROKER:
Mortgage brokers do not work for the lender. They are independent and therefore act with your best interest in mind rather than the banks’. The fact that they are not tied to a particular lender also means they have access to the entire market, not just products from one lender, which means you are more likely to get the best deal available.
Mortgage brokers are also more likely to know which lenders will favour your application, and can help you make sure your application is a success.
But, why do some mortgage brokers charge a fee and some not?
BUT, WHY DO SOME MORTGAGE BROKERS CHARGE A FEE AND SOME NOT?
Mortgage brokers have a number of different ways of earning from their services.
Fixed Fee: A mortgage broker charges a fee at a fixed rate. This charge will apply to all their mortgage advice.
Hourly Rate: The more advice you receive from them by the hour, the more you will be charged.
Percentage: Some mortgage brokers charge by accepting a percentage of the loan agreement.
Combination: Some mortgage brokers use different variations of these methods of payment.
Fee-Free: The broker will be paid a commission by the lender. You do not pay anything.
We use a combination.
We work on a fixed fee with a commission from the lender:
– Research and Recommendation fee £595
– Application and mortgage offer fee £400
We are transparent about our costs from the beginning and the reason we charge the way we do. Our extensive knowledge of the market and the time we spend on understanding your unique situation is what sets us apart.
“Viral found us mortgages that gave us the very best rates and then unlike any mortgage broker I have ever known before – kept looking right up to the moment we were about to sign the documents and actually found us an even better rate. His knowledge and grasp of complex financial issues are superb and his personal service unrivalled.”
The first meeting is free, we identify if we can help and offer some initial advice. Only once we provide you with an indicative number do you need to make a decision to move forward.
Once we agree to move forward, we help to progress your case with the solicitor and we are there for you right up until the day of completion.
It’s important that we state:
The commission we receive from the lender is never the reason for the selection of a lender or product. Client circumstances and needs are always the primary reason for choosing a particular mortgage option.
Is a fee-free broker right for me?
As we mentioned before, there are fee-free mortgage brokers out there that will offer a similar service.
However, this could mean they will be more inclined to point you in the direction of the lender that will provide them with a bigger commission.
Not all fee-free brokers work in this way but some will and it’s worth asking them to be completely honest about where their fees are coming from.
All in all, we would always recommend using a mortgage broker when purchasing a property because their knowledge and expertise of the market could save you valuable time and money. And, whether you go with a fee-free, fixed fee or combination fee broker, make sure you work with someone you trust.
Reviews and personal recommendations are a great way to find a broker.
You can see our reviews here.
Let’s find you the right mortgage today.