High Street Mortgage VS Mortgage Brokers: What's the Difference?

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High Street Mortgage VS Mortgage Brokers: What's the Difference?

12 July 2018

“What can a mortgage broker do that I can’t do myself?”

“Why should I pay for services when there are so many extra costs already involved?”

These may be questions you’re asking yourself when considering going direct to a high street lender for a mortgage, or using a mortgage broker. We would always recommend that you use an experienced, trusted mortgage broker who has your best interests at heart. Although you pay for a mortgage broker’s services, the return you get from using them far outweighs any extra expense.

Here’s why:

They Take Out the Legwork

A mortgage broker will search the whole market, comparing different deals that best suit your needs. They will look at interest rates, booking fees, valuation fees and exactly how they will affect the overall cost of your mortgage. Looking for a mortgage can be time consuming, which an experienced broker can easily relieve.

Exclusive Deals

Mortgage brokers have access to special rates from lenders that are simply out of your reach. When you approach a high street lender directly you’ll get their promoted rates, but brokers have an existing relationship with lenders which lets them in on cheaper deals that you could benefit from.

Expert Knowledge of Lenders and the Market

Each lender has a different affordability model, varying lending criteria and who they are likely to grant a mortgage to. If you don’t fit a bank’s lending criteria they might say you can’t have a mortgage, or you can but just for not as much as you need. A broker can stop this happening. A specialist intermediary can anticipate which lender is most suited to your individual needs, cutting out unnecessary rejections.

This level of knowledge can greatly maximise your borrowing power. You could get offered a mortgage from a lender that would only stretch to a two bedroom, but a different lender could give you enough for a three bedroom. Mortgage brokers have this wealth of information at their fingertips. Money Facts have a value-packed article with more info on this.

Brokers are Qualified

Mortgage brokers have to be qualified to give you financial advice. The market is complex and it’s not just as simple as a fixed rate or tracker mortgage. You can guarantee that you’ll be getting expert advice, which can hugely reduce your stress levels.

Weekend Access

Most of the lenders work office hours, while brokers work weekends to. If you’re dealing with a local branch you may want an update on your application and will find it difficult to get through. A broker often gets a dedicated case manager so will be able to bypass annoying red tape.

You’re Protected

A mortgage broker has a duty to have your best interests at heart. They have to recommend a suitable mortgage and be able to justify exactly why it’s right for you. The last thing you need is to go directly to a high street lender and take out a mortgage that can quickly become unaffordable. A mortgage broker will be able to assess your needs and offer a valuable extra layer of protection.

The Extra Mile

A good mortgage broker worth their salt will be willing to help you to make other financial decisions that come with moving home. This can be anything from recommending a life insurance policy, to buildings insurance. In a nutshell, although there are direct-only deals with high street lenders, you’re going to save yourself from extra stress, potential financial pitfalls and a lot of valuable time by using a broker. Have a read of this Money Supermarket article for more information on mortgage types, just to swot up.

Good luck!

Helping You Find a Mortgage That Fits.

Contact us for impartial mortgage advice

‘YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE’ 
Mortgage Matters direct is a trading name of Arun Estate Agencies LTD. Appointed Representative of Home in One Financial Services LTD which is regulated by the Financial Conduct Authority.