There are many good reasons to use a mortgage broker… a key one being the chance to save money. However, make sure you’ve got all your paperwork prepared so that they can secure the best deal for you.
Why use a mortgage broker instead of going directly to a lender? We can answer that quickly and clearly. Choice and service. A good broker can search the entire market on your behalf and find the best mortgage deal to suit you. A lender will only be able to offer you whatever deals they have on the table at that point in time.
A good mortgage broker can also offer bespoke advice on what would be best for your personal circumstances, taking into consideration both your short and long-term property goals.
They are also up to date with what’s going on in the market, essentially having their finger on the pulse at all times.
Deals through brokers
Another key reason to use a broker is that they may have access to mortgage deals not directly available to consumers (some lenders only offer certain products via brokers).
In addition, we’re living in unpredictable times with mortgage interest rates. Things can and are changing rapidly. In line with the recent Bank of England base rate rises, lenders are increasing the interest rates of their products and changing their minds about what they are able to offer at short notice.
Why is this happening? Quite simply, lenders are still receiving an extremely high number of mortgage applications and are struggling to cope with processing so many applications. When this happens, they fear this may affect the quality of the service they can offer, so they withdraw certain products, often at very short notice, to help them get back on track.
More applications
It can be frustrating for anyone hoping to get a mortgage approved when the landscape changes, and also has a knock-on effect on the property market. ‘If the lender with the cheapest deal withdraws their product, then the lender with the second cheapest option will start receiving more applications and might also make the decision to withdraw their product some days later,’ says MB Associates Sales Manager, Phil Leivesley.
This is why it’s essential to speak to a reputable mortgage broker. Not only could they help you save money by having access to a wide range of mortgages but can navigate the tricky and unpredictable times we’re currently facing.
Ensure you have all your paperwork prepared so that they can move swiftly on your behalf. Aim to provide all of the documentation and information they request from you as soon as you can.
Paperwork needed
If you are employed, your broker will normally need the last three months’ worth of payslips, your P60 and three months’ worth of bank statements. If you are self-employed, they will ask for your last two years’ worth of audited accounts and tax returns. You will also need to provide proof of ID. For more information, read our guide to documents required for your mortgage application.
It’s important to understand that if your broker is chasing you for documents, they’re not trying to be pushy. Instead, they’re trying to achieve the best possible outcome for you. ‘Your broker might contact you and tell you that you need to move quickly – no broker wants you to think they’re pressurising you, but they’re doing this for your benefit,’ says Phil.
‘In essence, they’ve understood your circumstances, made a recommendation, and quite possibly just found out that the product they have recommended is about to be whipped away,’ adds Phil. ‘If you’ve provided everything you’ve been asked to provide you stand a much greater chance of securing a competitive rate, so don’t waste time when it comes to getting paperwork together.’
More Information
If you’re worried about rising interest rates or want some help securing the best mortgage deal, get in touch with us and we’ll be glad to help you.