Tembo<\/a> is an example of a mortgage broker that integrates deposit saving into their platform so you can use it from the start of your journey. It offers a Lifetime ISA, as well as a specialised savings account for buying a home that includes a bonus rate if you use the broker service. <\/p>4. Boosting your budget<\/h3>
Building your budget can be a long process, so using a mortgage broker can also help you find ways to boost it. For example, the mortgage broker Tembo says it can increase a customer’s home-buying budget by \u00a382,000 compared to standard mortgage calculators – and it does this by searching over 100 lenders and 25+ schemes. <\/p>
5. Exploring schemes<\/h3>
Another key reason to use a mortgage broker is that they can help find more complex mortgages and alternative solutions. If you have a complex income situation, for example, or a low budget, a broker can scan different schemes available. Some of these schemes include Shared Ownership, family-supported mortgages, Deposit Unlock and Freedom to Buy. <\/p>
6. Providing regulated advice to explain the process throughout<\/h3>
Having someone to walk you through the mortgage process as a first-time buyer is invaluable. An FCA-regulated broker can give you advice from the first steps through to your mortgage offer and provide the best recommendation for your situation.<\/p>
7. Tech to scan emerging deals<\/h3>
Most digital mortgage brokers, like Tembo, Habito or Mojo Mortgages, use smart technology to constantly scan the market for the best deals and match them with user profiles. Even if you choose a mortgage deal but it\u2019s yet to go through, your digital mortgage broker can alert you if a better deal surfaces. <\/p>
8. Tried and tested<\/h3>
You can look at customer reviews and testimonials, including Trustpilot, for well-known mortgage brokers to get a sense. Some mortgage brokers are also award-winning which highlights their merit – as one example, Tembo has been voted UK’s Best Mortgage Broker for five years at the British Bank Awards.<\/p>
9. Convenience and availability<\/h3>
It\u2019s never been easier to use a mortgage broker as so many are online or app-based, letting you quickly input your details to get started. There\u2019s no need to spend hours hunting down deals as it\u2019s all done for you. Plus, you can usually schedule calls at the time of your choosing, and use the automated tools 24\/7. <\/p>
10. Independence<\/h3>
Not all brokers are independent. Some are “tied” (to one lender), some are “restricted” (to a limited panel of lenders) while others are independent and whole-of-market.<\/p>
An independent whole-market broker, has the advantage of being impartial and searching across an entire spectrum of lenders. This means they are genuinely finding the best deal from their comprehensive panel, rather than leading you in a particular direction. <\/p>
Frequently asked questions<\/h3>\n
Is it better to go to a bank or a mortgage broker?<\/h4>\n \n
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In most cases it\u2019s better to use a mortgage broker to give you a full view of your options across tens or hundreds of lenders. This is especially true if you have a more complex mortgage situation. However, if you have a straightforward application or you already know you want to go with a particular bank, then you might apply directly.<\/p><\/p>\n <\/div>\n <\/div>\n<\/div>\n
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What are the benefits of a mortgage broker for a first-time buyer?<\/h4>\n \n
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For first-time buyers, a mortgage broker can help you boost your borrowing power, assess different schemes, offer regulated advice and generally simplify the whole process \u2013 a process that can seem daunting at first!<\/p><\/p>\n <\/div>\n <\/div>\n<\/div>\n
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What documents does a mortgage broker need from me?<\/h4>\n \n
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Your mortgage adviser will provide you with the specifics, and this will vary depending on your circumstances, but a typical request this may include:<\/p>
- Proof of identity (driving license or passport)<\/li>
- Proof of address (recent utility bill or council tax statement)<\/li>
- Proof of income (3-6 months worth of payslips)<\/li><\/ul><\/p>\n <\/div>\n <\/div>\n<\/div>\n
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Is a mortgage broker worth it for a simple renewal?<\/h4>\n \n
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Yes, it\u2019s still worth using a broker if it\u2019s time to remortgage. Your bank might offer you a simple deal, but it might not be the best on offer, so you can check with a broker. It\u2019s worth identifying a broker that doesn\u2019t charge fees for renewals, like Tembo or L&C Mortgages.<\/p><\/p>\n <\/div>\n <\/div>\n<\/div>\n
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Do mortgage brokers charge fees?<\/h4>\n \n
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It depends on the broker and the circumstances. Some brokers are completely fee-free, while others do charge fees in certain situations. You can typically find out their fee structure online, or ask in an introductory call. <\/p><\/p>\n <\/div>\n <\/div>\n<\/div>\n
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Does using a broker affect the speed of the mortgage process?<\/h4>\n \n
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Using a mortgage broker typically leads to a quicker process, because you have an expert to handle the process, deal with the admin and communicate with third-parties. However, if there are delays on the lender side, you may still be impacted by this. <\/p><\/p>\n <\/div>\n <\/div>\n<\/div>\n<\/div>\n