Using a mortgage broker

You are far more likely to find a better deal by using a mortgage broker. They search the market and could save you thousands with the right deal.

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Compare mortgages using a broker

  • Help finding the best mortgage for you
  • Support through the whole process
  • The UK's largest fee-free broker
  • Compare deals from over 90 lenders
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
They’re not just for people with poor knowledge of how mortgages work. They’re also highly recommended when you’re in a tricky personal or financial situation and unsure which lenders are likely to offer you a deal.

Mortgage brokers have a deep understanding of the various criteria that individual lenders require to approve an application, so they can point you towards the best deals that you’re likely to be approved for.

You’ll save a lot of time and stress working with a mortgage broker. More importantly, it should prevent you from destroying your credit score by making going through multiple failed mortgage applications.

How to choose the best mortgage broker

Here are the three main factors to compare when choosing one:

  • How many lenders do they compare? A lot of mortgage brokers only work with specific lenders. Some brokers who claim to be “whole of market” won’t check lenders that offer “direct only” mortgage deals, although others will. Either way, it’s important to be clear about how many lenders your broker will compare on your behalf. If it’s not truly “whole of market”, you’ll need to ensure you check the remaining lenders in order to guarantee yourself the best deal.
  • Fee. Some brokers don’t charge a fee, because they receive commission from lenders instead. Others will charge their customers a one-off fee. Make sure you’re aware of how much and when you’ll be charged.
  • Customer service. Check for testimonials on brokers’ websites.

Should you choose a mortgage broker or go with a bank?

While many people could be put off the idea of using a broker due to the fees they charge, the reality could be a lot different if they find you a good deal. You may end up saving thousands in the long term.

Start your mortgage application with these mortgage brokers

Mojo Mortgages

Mojo Mortgages

The Mojo mortgage calculator compares rates in less than 1 minute. A free online mortgage broker.
Habito

Habito

Save £1,000s on your mortgage. Applying is quick & easy with Habito. Get a quote online in minutes.
L&C cobrand

L&C

The UK's largest fee-free mortgage broker & adviser. No hidden costs. L&C compares rates from over 80 lenders.

Advantages of using a mortgage broker

  • Peace of mind. This a huge financial decision you’re making, so there’s a lot to be said for being sure you’re doing the right thing. Buying a house is stressful enough without wondering whether you’ve made a five-figure mistake. You’ll be able to question your mortgage broker about any part of the house-buying process you don’t understand.
  • It saves time. Comparing every mortgage on the market is a time-consuming process and applying for one isn’t a walk in the park either. Lenders will ask you for all types of paperwork and it can sometimes take weeks for them to process your application. A mortgage adviser can find the best deal for you and assist you with your application, helping to streamline the process and boost your chances of being approved.
  • Knowledge of unique mortgage situations. Do you have bad credit or low income? Are you buying an unusually structured property? Have you recently changed jobs, separated from a spouse or suffered a bankruptcy? All of these situations will affect your mortgage application. A mortgage adviser will know which lenders are best placed to approve applicants in these scenarios.
  • Protect your credit score. When you apply for a mortgage, you’ll be credit checked and this will result in your credit score decreasing slightly. That’s no big deal if your application is approved, but it becomes a problem when you rack up multiple failed applications. In this situation, your credit score could take a serious dip, potentially harming your chances of being approved for any decent mortgage deals in the short-term future. By using a mortgage adviser, you boost your chances of being approved first time around.
  • Some mortgages are only available through brokers. These experts therefore provide the easiest way to compare the whole market.
  • Some mortgage brokers can negotiate a better deal. Although this is far from a guarantee, many mortgage brokers have reported being able to negotiate a better rate for their customers. This service alone could be worth the fee you pay them.

Advantages of going through a bank (direct lender)

  • It saves you the fee. If you’re confident in your ability to find the best mortgage lender, you can save yourself the expense of a mortgage broker’s fee by doing it yourself.
  • Work during hours that suit you. When using a mortgage broker, you’ll have to contact them during traditional working hours, whereas you can search and apply for a mortgage online at any time of day.
  • You don’t have to rely on anyone. While there are plenty of experienced brokers who would be dubbed ultra-reliable by their customers, not all of them can boast glowing reviews. If you prefer not trusting someone else with your finances, you might like to approach a mortgage provider directly.

Can a mortgage broker negotiate a better deal for me?

Some mortgage brokers will approach a lender and submit an application on your behalf and many claim to be able to negotiate a better deal for you.

When you consider how much even the smallest percentage drop could save you over the length of a 25-year mortgage, this benefit could be worth the fee alone.

What’s more, some mortgages are only available through brokers, so you’ll get access to a bigger range of deals by using one.

The different types of mortgage brokers

The most important difference is the number of mortgage providers that a broker will compare.

Some brokers are tied to specific lenders. Some will compare deals from a limited list of lenders, while others will claim to be “whole of market”.

Yet, it gets more complicated than that, because some “whole of market” brokers won’t compare lenders that only accept direct applications.

If you don’t use a mortgage broker who actually compares the “whole market”, you’ll need to do additional research to ensure you’re truly getting the best deal.

What are the pros and cons of using a mortgage broker?

Pros

  • It’s fast and stress-free
  • You’ll be recommended a deal you’re likely to be approved for
  • You’re far more likely to find the best deal
  • Your broker might be able to negotiate a discount

Cons

  • Some mortgage brokers charge a fee
  • Some mortgage brokers don’t cover the whole market
  • You’ll have to work within your broker’s opening hours

No-fee mortgage brokers explained

If you’re looking to save some cash, a no-fee mortgage broker could be the right option for you.

These are mortgage brokers that won’t charge you a fee for some or all of the mortgage application process. Some will offer fee-free services for sourcing your mortgage and then charge for arranging it, while others will charge no fee for the entire process.

As such, no-fee mortgage brokers can be an attractive solution if you don’t want to have to pay a large sum of money to secure a mortgage deal.

It is important to know that no fee mortgage brokers make their money by earning commission directly from lenders, which is why their services are not at any additional cost to you. This could mean that you do not get the best possible deal by going through a broker.

At what stage will a mortgage broker charge a fee?

The answer to this question depends very much on the mortgage broker you choose to use.

For instance, some mortgage brokers offer a no-fee service for recommending a specific loan. But if you decide to go ahead with their recommendation, then there can be fees of around £500 to pay once you submit the mortgage application. This fee could come alongside another commission fee that the broker would receive from the lender on completion.

Other brokers, like London & Country (L&C), offer free mortgage advice from start to finish over the phone. This means you won’t pay any fees, from when their brokers compare and source the best deals for you, to when they help you submit your online application.

While going fee-free will save you money and might sound like the way to go, it’s important to remember that many of these brokers will only be accessible to you over the phone.

Some people may wish to have access to their broker face-to-face, in which case, paying the arrangement fees and opting for a traditional mortgage broker might be the right way to go.

A fee-free mortgage broker may also try to point you towards deals that will earn them a higher commission, which means you may end up paying more in the long term than if you had opted for a deal with a bigger fee in the first place.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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