Why use a broker: The Mortgage Provider Online Guide Why should anybody use an intermediary when you can walk into any number of lenders on the high street? Most high streets are dominated by the big banks and building societies, and you probably already have a reasonable relationship with the branch you bank with.
However, getting a mortgage is a much bigger financial responsibility than maintaining a current account or getting a personal loan. It is likely that it will be the biggest investment of your life. It’s all the more important because it involves your home. Hence it is vital that you use a specialist broker.
Advantages of using a broker:
Most brokers (including The Mortgage Provider) can source mortgages from the whole of the market. This means that a broker can source a mortgage from every product available on the market today. Brokers can source mortgages from specialist lenders tailored to your individual needs. High Street lenders will only ever recommend a mortgage from their own limited range.
There are some lenders which do not have a branch network and rely solely on mortgage intermediaries. This cuts their costs and enables them to offer niche products and some very low rates. GMAC RFC, the residential lending arm of General Motors, isn’t a household name and is without high street branches. However, it is now one the biggest lenders in the country with a huge reputation amongst brokers.
Due to the levels of business many brokers give to lenders, they can give extra clout to your mortgage application. Your application may be considered borderline on a certain lender’s criteria, but given the amount of trust often built up between the lender and broker they can give you the benefit of the doubt
Brokers often negotiate special rates with lenders (sometimes with high street lenders) that are not available anywhere else.
