For the majority of people their mortgage payment is their largest expense, with this being the case it is surprising the amount of homeowners that do not bother to compare prices to ensure they are getting the best deal. In many cases this is due to a lack of knowledge and the homeowner feeling like they are dealing with a minefield, leaving them unsure of which type of mortgage they require. This situation leads to many homeowners not obtaining the best possible rates and therefore paying thousands of pounds unnecessarily over the course of their mortgage term.

This is where a mortgage broker’s role is essential; it is possible for a broker who passes a certain quota of clients to be able to negotiate a rate discount from lenders, (although this situation is unheard of in the current market) as a broker often deals with several competing lenders it may be possible for them to access exclusive rates.

Many mortgage brokers offer their services at no extra cost to you the client as they will earn a fee from the mortgage lender. It is worth shopping around to find a broker that doesn’t charge client fees, ask family and friends for personal recommendations. A broker is able to provide a flexible service dependent on your personal situation and needs, they offer advice and solutions and unlike banks they work for you. It is normal for a broker to work around a client’s schedule which saves the client taking time out of work which in turn saves money not to mention being much more convenient for the client, helping to eliminate possible stress during the mortgage transaction.

Whether the purpose of obtaining a mortgage is for purchasing a new home or simply refinancing an existing mortgage it is quite conceivable
that your mortgage broker will be able to obtain a pre-approved mortgage, often securing the interest rate from 3 to 6 months. This can be extremely beneficial if you are still looking for a property or wish to arrange your remortgage as early as you can. This basically means that a lender has agreed in principle the amount to be borrowed and will fix the rate offered for a stated length of time usually between 3 to 6 months.

Another important bonus of using a mortgage broker is that they will carry out one credit score and then source the best mortgage available from their table of lenders. If you choose to apply to several lenders yourself it is highly likely that you will end up with multiple credit scores being carried out which can affect your credit rating adversely.

A mortgage broker is required by law to be qualified with a cemap qualification which is regulated by the FSA. Mortgage brokers are required to adhere to the FSA’s stringent regulations and guidelines; they must follow strict protocols and justify their advice and solutions at all times. This is reassuring for potential clients who can relax once they have chosen a cemap qualified mortgage broker, with the knowledge that the mortgage broker has an obligation to act in the best interest of the client.