The Pros and Cons of Using a Mortgage Broker

Should you bother with a mortgage broker or go direct to lenders yourself? Let’s look at the pros and cons of both options so you can judge for yourself.

The Pros and Cons of Using a Mortgage Broker
Using a broker 
 
Pros
-             Choice – You get access to a range of products from different lenders.
-             Special deals – Some lenders only work through brokers, so you’ll get access to deals that aren’t widely available. These may be cheaper.
-             Less work – No scrolling through comparison sites or talking to lenders.
-             Avoid hidden fees – A broker can explain the fine print so you don’t get stung.
-             Documentation – They’ll help you get all the right paperwork together.
 
Cons
-             Fees – Some brokers charge fees (others get a commission from lenders).
-             Standard result – You may end up with a deal you could have gotten yourself.
-             Selective access – Some brokers don’t cover the whole market but instead work with a selected panel of lenders.
 
Going direct to a lender
 
Pros
-             No middleman – As a result, your application may be processed quicker.
-             Loyalty rewarded – Long-standing bank customers may be given a preferential rate, especially if remortgaging.
 
Cons
-             Inflexibility – High street banks may refuse mortgages on unconventional properties such as listed buildings or ones made from unusual materials such as wattle and daub, or concrete.
-             Lending criteria – If you have a poor credit score, patchy employment history or are self-employed, high street lenders might be reluctant to lend to you.
 
Important: If you go with a mortgage broker, always insist on transparency over how they get paid and check they’re listed on the FCA register.
 
For advice about buying or selling a property, contact us today.

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  Hello, my name is Abigail, and I am the Grey in Grey & Co. I started working here in 2002 as a Junior Negotiator and have worked my way up the ranks since then. I took over running the company in 2014 and have been enjoying the roller coaster that is leadership ever since.   During my 20 plus years at Grey & Co I have dealt with the sale of over £100,000,000 worth of property and overseen the management of assets worth £250,000,000 for clients around the world.   I also had the pleasure of working with my father, the founder of Grey & Co, for 15 years before he sadly passed away and from him, I learnt the work hard ethic and our values today are still the ones that he founded the company on all those years ago.   Be Remarkable, Be Passionate, Be Humble and Be Better.   As a community centric boutique family agency, you couldn’t find a better partner to take with you on your property journey.

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