Finding and Choosing a Mortgage
Finding and Choosing a Mortgage
Choosing a mortgage doesn’t have to be complicated. You have two main options to consider: Using a Mortgage Broker Going Direct to a Lender Both options can help you find a suitable mortgage, but they work a bit differently.
Here’s a breakdown to help you decide which works best for you.
Using a mortgage broker
A mortgage broker (or adviser) helps you find the right mortgage by comparing options from various lenders and guiding you through the application process.
Pros:
Wide Selection: Brokers check offers from multiple lenders, giving you access to a wide range of choices
Exclusive Deals: They may have access to deals you can’t get directly from lenders
Expert Knowledge: They know lender rules and criteria, making the process quicker and smoother
Convenience: Many brokers are flexible, offering services during evenings, weekends, or even over the phone or at your home
Help with Paperwork: They assist with applications, saving you time and effort
Considerations:
Fees and Commission: Brokers may charge fees, and they earn commission from lenders. They’ll tell you how they’re paid
Limited Lender Range: Some brokers only work with a select number of lenders
Missed Deals: Some exclusive lender deals might not be available through brokers
Preference: You might simply prefer dealing directly with a lender
Going direct to a lender
When you go straight to a lender, their representative will help you pick the best mortgage from their offerings and assist with your application.
Pros:
Product Knowledge: Lenders know their own deals and can explain them clearly
Exclusive Offers: Lenders may have deals you won’t find through brokers
Expert Guidance: Like brokers, lender advisors must assess your situation before recommending any mortgages
Considerations:
Limited Options: You only see the deals from that specific lender, which might not be the best fit for your needs
Less Flexibility: Some people find it harder to compare deals when working directly with a lender.
If you’re confident in your decision making, some lenders offer an “execution only” option. This allows you to apply online without advice, but you’d need solid knowledge of what kind of mortgage you want before choosing this route.
Final message from the team
Choosing the right mortgage comes down to two main options: working with a mortgage broker or going directly to a lender.
Mortgage brokers compare offers from various lenders, provide expert guidance, and handle paperwork, offering convenience and access to exclusive deals. However, they may charge fees, work with limited lenders, or miss certain direct lender offers.
On the other hand, going directly to a lender gives you access to their specific products and exclusive deals, but limits your options to just one provider. Both options have their pros and cons—consider your needs to choose the right approach for you.
Want tailored mortgage advice? Speak to our recommended mortgage advisers at Ernest Grant to understand your options. Book a call here.
Please note: Sheldon Bosley Knight is not authorised to give financial advice; the information and opinions provided in these articles are not intended to be financial advice and should not be relied upon when making financial decisions. Please seek advice from a regulated mortgage adviser.
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