A Comprehensive Guide to Mortgage Brokers in the UK: Why You Should Consider Using One (2023)

I see many people are searching online on what is a mortgage broker and what they do. I have used Mortgage brokers to buy my own homes and buy to let properties that makes me money every money.

The UK property market is one of the best and safest bets you can invest on. Nothing is as safe as this asset class. Anything can taken away from you or fluctuate it’s value but property is always needed by humans to live, love and matter on this planet.

It took me years to work my way to save and buy my own home in the UK. And for that I seek the advice of a mortgage broker who did helped me all the way from how to go about getting a mortgage.

A Comprehensive Guide to Mortgage Brokers in the UK: Why You Should Consider Using One (1)

(Video) Applying for a Mortgage in 2023: A Beginners Guide to the UK Mortgage Market

I would say, even if you have the money to cash buy a property, it’s best to out down 5, 10 or max 15% and buy your own home. For a buy to let property mortgage you will have to put in at least 25% minimum.

Let’s look at why you should consider hiring a mortgage advisor in the UK.

Purchasing a home is a significant financial decision that requires careful consideration of various factors, including finding the right mortgage loan.

Navigating the complex mortgage market in the UK can be overwhelming, with numerous lenders, loan options, and financial jargon to decipher. This is where a mortgage broker can be a valuable ally in helping you secure the best mortgage deal tailored to your unique financial situation and needs.

(Video) What NOT to tell your LENDER when applying for a MORTGAGE LOAN

In this comprehensive guide, we will explore what a mortgage broker is, how they work, and why you should consider using one when seeking a mortgage in the UK.

What is a Mortgage Broker?

A mortgage broker is a qualified financial professional who acts as an intermediary between borrowers (homebuyers or property owners) and lenders (banks, building societies, and other financial institutions).

They help borrowers find and secure mortgage loans that are suitable for their individual circumstances.

Mortgage brokers have in-depth knowledge of the mortgage market, including loan products, interest rates, and lending criteria of various lenders.

They work closely with borrowers to understand their financial goals, assess their financial situation, and provide expert advice on mortgage options that best align with their needs.

(Video) Mortgage Broker Live Q&A - 7.30pm Tues 2 May

How Does a Mortgage Broker Work?

A mortgage broker typically follows a systematic process to help borrowers secure a mortgage loan:

  1. Initial Consultation: The first step in the process involves an initial consultation with the borrower. During this stage, the mortgage broker collects essential information about the borrower’s financial situation, including income, expenses, credit history, employment status, and any outstanding debts. This information helps the mortgage broker gain a clear understanding of the borrower’s financial position and goals.
  2. Mortgage Market Research: After understanding the borrower’s financial situation and goals, the mortgage broker conducts thorough research of the mortgage market to identify suitable loan options. They compare various lenders and their loan products, including interest rates, fees, and terms, to find the best match for the borrower’s requirements.
  3. Mortgage Application Submission: Once the borrower and the mortgage broker identify the most suitable mortgage option, the mortgage broker assists the borrower in completing the mortgage application accurately and thoroughly. The mortgage broker then submits the application to the selected lender on the borrower’s behalf.
  4. Communication and Coordination: Throughout the mortgage application process, the mortgage broker serves as a communication link between the borrower and the lender. They liaise with the lender on behalf of the borrower, provide updates on the progress of the application, and address any queries or issues that may arise.
  5. Expert Advice: A mortgage broker provides expert advice to the borrower at every stage of the mortgage application process. They explain the different types of mortgages available, including fixed-rate, variable-rate, and tracker mortgages, and help the borrower understand the pros and cons of each option. They also provide guidance on choosing the right mortgage term, repayment options, and other terms and conditions associated with the mortgage loan.
  6. Saving Time and Effort: One of the significant advantages of using a mortgage broker is that they save borrowers time and effort. Instead of researching and approaching multiple lenders individually, a mortgage broker streamlines the process by doing the legwork for the borrower. They have access to a wide range of lenders and loan products, which can save borrowers the hassle of contacting each lender individually and filling out multiple loan applications.

Why Should You Use a Mortgage Broker in the UK?

Using a mortgage broker in the UK can offer several benefits, including:

  1. Access to a Wide Range of Mortgage Options: The mortgage market in the UK is highly diverse, with various lenders offering different loan products. Navigating this vast market can be overwhelming for borrowers, especially those who are first-time homebuyers or have unique financial circumstances.
  1. Access to Exclusive Deals: Mortgage brokers often have access to exclusive mortgage deals that may not be available to the general public. This may include discounted interest rates, waived fees, or special terms that can result in significant cost savings for borrowers.
  2. Expertise and Market Knowledge: Mortgage brokers are experts in the mortgage market and keep themselves updated with the latest industry trends, lending criteria, and regulatory changes. They can provide invaluable advice and guidance to borrowers, helping them navigate the complex mortgage landscape with ease.
  3. Personalized Service: Mortgage brokers work closely with borrowers to understand their unique financial situation, goals, and preferences. They take the time to assess the borrower’s needs and provide personalized mortgage solutions that align with their requirements. This individualized approach ensures that borrowers receive tailored advice and recommendations based on their specific circumstances.
  4. Time-Saving and Convenient: Researching, comparing, and applying for mortgage loans can be time-consuming and overwhelming. Mortgage brokers handle all the legwork on behalf of borrowers, saving them time and effort. They streamline the mortgage application process, handle paperwork, and coordinate with lenders, making the entire process more convenient for borrowers.
  5. Increased Chances of Approval: Mortgage brokers have in-depth knowledge of lenders’ lending criteria and can match borrowers with the most suitable lenders based on their financial profile. This increases the chances of loan approval, as the mortgage broker can guide borrowers towards lenders who are more likely to approve their application, saving them from multiple rejections that may adversely affect their credit score.
  6. Best Interest Representation: Unlike lenders who are focused on their own products, mortgage brokers work in the best interest of borrowers. They act as an advocate for borrowers, negotiating with lenders on their behalf to secure the best possible mortgage terms and conditions. This ensures that borrowers get the most favorable mortgage deal that suits their financial goals and budget.
  7. Financial Planning and Budgeting: Mortgage brokers not only help borrowers find the right mortgage loan but also assist them in planning their finances and budgeting effectively. They provide guidance on how much mortgage borrowers can afford, taking into account their income, expenses, and financial goals. This helps borrowers make informed decisions and avoid taking on mortgage loans that may strain their finances in the long run.
  8. Transparency and Disclosure: Mortgage brokers are required by law to provide full transparency and disclose all relevant information to borrowers, including any fees or commissions they may receive from lenders. This ensures that borrowers have a clear understanding of the costs associated with their mortgage application and can make informed decisions.
  9. Continual Support: Mortgage brokers provide ongoing support to borrowers throughout the mortgage application process, from the initial consultation to the final closing. They are available to answer any questions, provide updates, and offer advice at every stage of the process. Even after the mortgage is approved, mortgage brokers can continue to provide valuable assistance, such as helping borrowers refinance or renegotiate their mortgage terms in the future.

In conclusion, a mortgage broker can be a valuable asset for borrowers in the UK when seeking a mortgage loan. With their expertise, market knowledge, personalized service, and access to a wide range of mortgage options, mortgage brokers can help borrowers save time, effort, and money, while ensuring that they secure the most suitable mortgage deal for their unique financial situation and goals.

If you are considering a mortgage in the UK, it’s worth exploring the benefits of using a mortgage broker to guide you through the process and increase your chances of a successful mortgage application.

I worked with BVS Mortgages to buy my own houses and buy to let properties and they have been good. You can speak to them if you like by visiting their website at https://www.bvsmortgages.co.uk/

(Video) Your Complete Guide to Becoming A Mortgage Broker

Below you can find 10 more which I found using AI

10 Mortgage brokers in the UK you can speak to

  1. London & Country Mortgages (https://www.landc.co.uk/): London & Country Mortgages is one of the largest and most well-known mortgage brokers in the UK. They offer a wide range of mortgage products from various lenders and provide personalized advice to help borrowers find the right mortgage for their needs.
  2. Mortgage Advice Bureau (https://www.mortgageadvicebureau.com/): Mortgage Advice Bureau is a leading mortgage broker with a network of over 1,400 advisers across the UK. They offer expert mortgage advice and have access to exclusive mortgage deals, providing borrowers with a wide range of options.
  3. John Charcol (https://www.johncharcol.co.uk/): John Charcol is an award-winning mortgage broker with over 40 years of experience in the industry. They provide tailored mortgage solutions for residential and commercial properties, and offer personalized advice to help borrowers navigate the mortgage process with confidence.
  4. Trinity Financial (https://www.trinityfinancialgroup.co.uk/): Trinity Financial is a specialist mortgage broker that focuses on complex cases, such as buy-to-let mortgages, bridging loans, and commercial mortgages. They have a team of experienced advisers who provide personalized and specialized mortgage advice to borrowers.
  5. SPF Private Clients (https://www.spf.co.uk/): SPF Private Clients is a leading mortgage broker that specializes in high net worth and complex cases. They offer bespoke mortgage solutions for clients with unique financial situations and provide expert advice on a wide range of mortgage products.
  6. Mortgage Gym (https://www.mortgagegym.com/): Mortgage Gym is an online mortgage broker that uses artificial intelligence to match borrowers with suitable mortgage deals. They offer a streamlined and digital mortgage application process, making it convenient and efficient for borrowers to find and apply for mortgages online.
  7. Alexander Hall (https://www.alexanderhall.co.uk/): Alexander Hall is an established mortgage broker with over 30 years of experience in the industry. They offer comprehensive mortgage advice, including remortgages, first-time buyer mortgages, and specialist mortgages for self-employed borrowers.
  8. One 77 Mortgages (https://www.one77fs.co.uk/): One 77 Mortgages is an independent mortgage broker that offers a wide range of mortgage products from various lenders. They have a team of expert advisers who provide personalized mortgage advice and aim to find the best mortgage solution for each borrower’s unique needs.
  9. L&C Mortgages (https://www.lcplc.co.uk/): L&C Mortgages is a popular online mortgage broker that offers free mortgage advice and has access to a wide range of mortgage deals from different lenders. They provide a convenient and digital mortgage application process, making it easy for borrowers to compare and apply for mortgages online.
  10. Just Mortgage Brokers (https://www.justmortgagebrokers.co.uk/): Just Mortgage Brokers is a specialist mortgage broker that focuses on helping borrowers with poor credit or complex financial situations. They have a team of specialist advisers who provide personalized mortgage advice and have access to a wide range of lenders specializing in adverse credit mortgages.

Note: It’s important to thoroughly research and compare mortgage brokers to ensure they are regulated by the Financial Conduct Authority (FCA) and have a good reputation before choosing to work with them.

So if you read this far you now know what is a mortgage broker and if you should seek advice from them on your property purchasing in the UK.

If you need any help in finding good property deals in the UK, you can reach out to me and ask. I will introduce you to my UK property finder who will save your time and make sure you find the best properties to buy.

A Comprehensive Guide to Mortgage Brokers in the UK: Why You Should Consider Using One (2)

(Video) Applying for a Mortgage: A Step-by-Step Guide


A Comprehensive Guide to Mortgage Brokers in the UK: Why You Should Consider Using One? ›

Benefits of using a mortgage broker

Explain the various mortgages available and the different types of deals. Advise you on how much you can afford to borrow. Have access to special mortgage deals that are not available on the open market.

Is it worth using a mortgage broker UK? ›

Benefits of using a mortgage broker

Explain the various mortgages available and the different types of deals. Advise you on how much you can afford to borrow. Have access to special mortgage deals that are not available on the open market.

What is an important factor or factors to consider when choosing a mortgage? ›

Of course, cost is one of the most important factors when choosing your lender. You'll want to consider the interest rate, obviously, as well as loan origination fees and other charges the lender imposes. The goal should be to get the lowest rate from a lender offering the best overall loan terms.

What is a mortgage broker & should you use one? ›

A mortgage broker is a go-between who deals with banks or other lenders to arrange a home loan. Mortgage brokers must act in your best interests when suggesting a loan for you. A good broker works with you to: Understand your needs and goals.

Is it better to use a mortgage broker or bank UK? ›

Mortgage Brokers are cheaper than a bank

A mortgage broker will also have a much better understanding of your needs, and will be able to find the right mortgage for you. If you're looking to get a mortgage, rather than going through a bank, you should definitely consider getting a mortgage broker on board.

What does a mortgage broker do in the UK? ›

They'll check your finances, so they'll intuitively know which mortgage will suit you best – even if you have other ideas. They might be able to save you money and get you exclusive deals with lenders. They can help with the 'red tape' side of things – for example, complex paperwork and contracts.

Do I need a broker to buy a house in UK? ›

Yes! In the UK, it's not usually standard practice for a buyer to hire an estate agent. Usually, an estate agent will only represent the person selling their property. However, if you're a buyer, there are some very useful ways you can use estate agents to help you find the right home, for the best sale price.

Are there mortgage brokers in the UK? ›

There are thousands of mortgage brokers in the UK. If you want to find someone local, you should start by visiting Unbiased* – which will list ones in your area. Personal recommendations can be a good way to find a reliable broker.

What 3 factors are considered in qualifying for a mortgage? ›

5 Factors That Determine if You'll Be Approved for a Mortgage
  • Your credit score.
  • Your debt-to-income ratio.
  • Your down payment.
  • Your work history.
  • The value and condition of the home.
Feb 23, 2023

Is it hard to get a mortgage UK? ›

How easy is it to get approved for a mortgage? This all depends on your personal and financial circumstances, including if you already have an existing mortgage. Factors such as deposit, credit history, income and debt all play a large role in you being approved for a mortgage.

What are the four factors that are important to determining a mortgage payment? ›

A mortgage payment is typically made up of four components: principal, interest, taxes and insurance. The Principal portion is the amount that pays down your outstanding loan amount. Interest is the cost of borrowing money. The amount of interest you pay is determined by your interest rate and your loan balance.

What is a broker and why do I need one? ›

A broker is an intermediary between an investor and a securities exchange—the marketplace where financial assets are bought and sold. Because securities exchanges only accept orders from individuals or firms who are members of that exchange, you need a broker to trade for you—that is, to execute buy and sell orders.

Is it OK to use more than one mortgage broker? ›

The answer to this question is yes you can use multiple brokers to act on your behalf, but the problem is, it might not help you get the mortgage you want and, in some cases, can prevent you from getting a mortgage altogether.

Is it better to use a mortgage broker or go straight to the bank? ›

There's really no wrong answer. A broker can make the mortgage experience easier but limits your options. Doing it yourself takes more time, but when you've found the right loan and lender, you might end up with a better deal.

What is the most popular mortgage type in the UK? ›

Repayment Mortgage

The most common mortgage type, repayment mortgages are the base for the vast majority of other mortgages on the market, regardless of their fancy marketing names and terms.

What are the best UK mortgage rates? ›

  • Barclays Mortgage. Rate: 4.10% Fixed to 30 June 2025 before reverting to 7.74% Initial period: 2 years. Product fee: £999. ...
  • Coventry BS. Rate: 4.11% Fixed to 31 October 2026 before reverting to 6.74% Initial period: 3 years. ...
  • Virgin Money. Rate: 3.82% Fixed to 1 August 2028 before reverting to 8.24% Initial period: 5 years.
Apr 12, 2023

Who are the biggest mortgage brokers in the UK? ›

The UK's largest mortgage lenders are Lloyds, Santander, Nationwide, Barclays, NatWest (including former Royal Bank of Scotland accounts) and HSBC.

What are broker rules in UK? ›

UK brokers have more flexibility than brokers in any other part of the world. They do not have any trading restrictions. Brokers here also create an account with only $1. Even spread betting here is exempted from taxes and it is the trader's duty to make sure that spread betting is considered legal in their region.

What information does a mortgage broker need UK? ›

You should also be asked to bring a proof of address, like a recent utility bill, current bank statement or council tax statement. The lender is also likely to want proof of your income, so you may want to have with you your latest three payslips, your P60, and bank statements from the past three months.

Who regulates UK mortgage brokers? ›

Firms offering mortgage advice must be regulated and authorised by the Financial Conduct Authority (FCA). Details of all regulated firms are held on the FCA's Register.

Can I buy a house in UK as non resident? ›

Can foreigners buy real estate in the UK? Yes, whether you're an American, an EU resident, or another non-UK resident, you can buy a house in the UK. Buying a home in the UK as a cash buyer, on the other hand, is less challenging because obtaining a UK mortgage may be tough.

Can I use a US broker from the UK? ›

Most brokers allow you to buy and sell shares on the US market in the same account that you would normally use to buy UK shares.

What are the pitfalls of buying property in the UK as a US citizen? ›

In the UK, contracts are not exchanged and the purchase is not legally binding until close to the completion date (sometimes the day before!). This is why buying property in the UK is far more stressful compared to the US, where contracts are usually exchanged within a week of the offer being accepted.

How do I choose a broker UK? ›

Here are the five steps to choosing a stockbroker:
  1. Choose the best type of broker for you.
  2. Determine your investing style.
  3. Compare costs and fees.
  4. Consider extra tools and education.
  5. Vet your broker.
Apr 18, 2023

Can an American get a UK mortgage? ›

American nationals can secure mortgages on UK real estate. The banks which will lend depend on whether you will remain resident in the US, or whether you are resident in the UK, and which type of visa you have.

Can foreigners apply for UK mortgage? ›

Can you get a UK mortgage as a foreign national? Yes, it's possible. You don't have to have a UK passport in order to take out a buy-to-let, residential or commercial mortgage. You'll have to apply for what's called a foreign national mortgage.

What are the 3 C's in mortgage? ›

They evaluate credit and payment history, income and assets available for a down payment and categorize their findings as the Three C's: Capacity, Credit and Collateral.

What are the 4 types of qualified mortgages? ›

There are four types of QMs – General, Temporary, Small Creditor, and Balloon-Payment.

What are the three C's that lenders look for? ›

Students classify those characteristics based on the three C's of credit (capacity, character, and collateral), assess the riskiness of lending to that individual based on these characteristics, and then decide whether or not to approve or deny the loan request.

What is the highest age to get a mortgage UK? ›

There's no overarching maximum age limit on getting a mortgage in the UK, but mortgage lenders normally set their own age limits. Typically, this is either: Your age when you take out a new mortgage, with the limit ranging from around 65 to 80.

What is the minimum salary to get a mortgage UK? ›

There is not a set wage you need to earn to get a mortgage. Instead, it will depend on the lender. Most lenders will look at what you can afford on a case by case basis. But some may have set conditions that can stop you from getting approved.

How much does the average person pay on mortgage UK? ›

Most residential mortgages are repayment products, and that means you pay a proportion of the capital back each month, plus the interest.
How Much is the Average Monthly Mortgage Cost?
RegionAverage Monthly Mortgage Cost - 2021
West Midlands£660
East Midlands£654
North West England£617
8 more rows

Which factor is most important to lenders? ›

The most important factor of your FICO® Score , used by 90% of top lenders, is your payment history, or how you've managed your credit accounts.

What are two of the most important factors to consider when applying for a loan? ›

Your income and employment history are good indicators of your ability to repay outstanding debt. Income amount, stability, and type of income may all be considered. The ratio of your current and any new debt as compared to your before-tax income, known as debt-to-income ratio (DTI), may be evaluated.

What are the three major factors that you will consider before lending? ›

7 Factors Lenders Look at When Considering Your Loan Application
  • Your credit. ...
  • Your income and employment history. ...
  • Your debt-to-income ratio. ...
  • Value of your collateral. ...
  • Size of down payment. ...
  • Liquid assets. ...
  • Loan term.
Jan 10, 2020

What is the best way to choose a broker? ›

  1. Look at commissions on the investments you'll use most.
  2. Look for brokers with a track record of reliability.
  3. Pay attention to account minimums.
  4. Watch out for account fees.
  5. Look at the pricing and execution fine print.
  6. Consider tools, education and features.
  7. Take advantage of promotions.
Mar 31, 2023

Is it better to go through a broker? ›

Working with a mortgage broker can potentially save you time, effort, and money. A mortgage broker may have better and more access to lenders than you have. However, a broker's interests may not be aligned with your own. You may get a better deal on a loan by dealing directly with lenders.

Why a broker is better than an agent? ›

While a real estate agent works underneath a broker, a real estate broker can work as an independent contractor or begin their own brokerage. Having a brokerage license can mean a higher salary or higher commission rates.

Should I get quotes from multiple mortgage brokers? ›

Get quotes from multiple lenders

Most experts recommend getting at least three rate quotes when you shop for a mortgage. But there's no limit to the number of mortgage companies you can apply with. And research suggests that the more quotes you get, the more money you'll save.

Do all mortgage brokers have access to the same deals? ›

Some brokers do check lenders' direct-only deals too. However, they are more likely to charge a fee. In reality, it's unlikely a broker could guarantee you access to EVERY mortgage, as exclusive deals can be arranged between lenders and brokers (and clubs that brokers can join).

Can I change mortgage brokers? ›

Yes, you can switch mortgage brokers. However, unless you feel that a mortgage broker is really not working in your best interests, you may want to think twice about changing brokers during the application process.

Why use a broker instead of a bank? ›

A broker will be able to offer you practically the entire finance market. If you want a home loan, a quality broker can identify the most appropriate loan for you, normally from over 30 lenders. A banker can offer one set of products from their own bank, nothing else.

Why use a mortgage broker and not a bank? ›

Are brokers better than banks for getting a mortgage? Mortgage brokers typically have two main advantages over banks. They offer access to a wider selection of mortgage products and they can leverage their relationships with multiple lenders to get their clients better rates.

Do mortgage brokers use their own money? ›

They are not lenders and, as such, do not use their own funds to advance mortgage loans. Instead, they act as intermediaries, helping consumers comparison shop, bringing them a variety of quotes from different lenders at one time.

What are UK mortgage rates for foreigners? ›

Fixed-rate mortgages
MortgageInitial interest rateFollowed by a Variable Rate, currently
2 Year Fixed Standard4.68% fixed6.99%
3 Year Fixed Fee Saver4.79% fixed6.99%
3 Year Fixed Standard4.59% fixed6.99%
5 Year Fixed Fee Saver4.49% fixed6.99%
5 more rows

Is it better to get a mortgage from a Bank or broker UK? ›

If you are about to get a mortgage, you should always get a mortgage from an experienced broker. Mortgage brokers have the knowledge and experience to find the right mortgage for you, so you can be sure that you will get the right mortgage with the right terms and conditions.

What are the two types of mortgages in UK? ›

Here is a closer look at the different types of mortgages in the UK.
  • Interest-only mortgage. For an interest-only mortgage, you pay the interest on the home loan every month but do not make any repayments toward the capital you have borrowed. ...
  • Repayment mortgage. ...
  • Fixed-rate mortgage. ...
  • Variable-rate mortgage.
Mar 24, 2023

Why are mortgage rates so high right now UK? ›

The Bank of England's base rate was at a record low of 0.1% between March 2020 and December 2021. These ultra-low deals began to vanish once the Bank started raising the base rate. The rate of borrowing has increased eleven times in a row since, to the current level of 4.25%. This has led to a rise in mortgage rates.

What are the trends in UK mortgage rates? ›

Lenders' typical standard variable rate (SVR) stood at 7.24% today, according to Better.co.uk. It's edged down from 7.28% which was the highest level seen since 2008. Average SVRs a year ago in May 2022 were 4.53%. At the start of April there were 5,146 residential mortgage deals on the market, according to Moneyfacts.

Are UK mortgage rates going down? ›

The Bank of England will cut the base rate to 3 per cent by the end of next year and then 2.5 per cent by the end of 2025, according to forecasts. That would be a substantial decline from the current 4.25 per cent but would still represent rates rising like a rocket and falling like a feather.

What are the different types of brokers UK? ›

In the UK, we have four main types of broker:
  • Stock brokers.
  • Full-service brokers.
  • Discount brokers.
  • Forex brokers (retail forex brokers)
Mar 24, 2023

How are mortgage brokers paid in UK? ›

Most mortgage lenders will pay mortgage brokers a commission, or procuration fee, of about 0.35 per cent of the loan size. This means that, for a £100,000 mortgage, a typical commission would be £350.

What is the role of the broker in the UK? ›

types of brokers

Your primary role is to buy or sell securities, stocks, shares or financial products on behalf of an investor. You complete the transactions through the stock exchange, and investors pay commissions and a fee. As a stockbroker, you also advise clients on the best investment opportunities.

How many UK brokers are there? ›

There are 1,626 Insurance Agents & Brokers businesses in the UK as of 2023, a decline of -0.4% from 2022.

Are UK estate agents regulated? ›

Estate agents are principally regulated by the EAA 1979 and the Consumer Protection from Unfair Trading Regulations 2008.

What documents do I need for a mortgage UK? ›

What you need to apply for a mortgage
  • utility bills.
  • proof of benefits received.
  • P60 form from your employer.
  • your last three months' payslips.
  • passport or driving licence (to prove your identity)
  • bank statements of your current account for the last three to six months.

What is mortgage compliance UK? ›

A major aspect of compliance is about responsible selling and ensuring that brokers and their staff do not mis-sell mortgages. This can occur in a variety of ways, for example when a broker has advised a borrower to take a loan which they cannot afford, or under terms the broker knows the borrower cannot meet.

What is a mortgage broker UK? ›

A mortgage broker is someone who specialises in mortgages. They're also known as mortgage advisers – the term is interchangeable.

Do you really need a mortgage broker? ›

Working with a mortgage broker can potentially save you time, effort, and money. A mortgage broker may have better and more access to lenders than you have. However, a broker's interests may not be aligned with your own. You may get a better deal on a loan by dealing directly with lenders.

Is it better to use a local mortgage broker? ›

Local lenders provide a more personalized experience.

With other mortgage lenders, you may deal with service lines, no direct contact, and delayed service. With local lenders, you will have direct communication and a partner who will be there to guide you throughout the process.

Is it better to use an independent mortgage broker? ›

Your mortgage broker has access to more deals

These broker-only deals can't be found on price comparison sites or directly from providers. So by using a broker you increase your chances of finding the best deal to suit your needs and circumstances.

Are mortgage brokers free in UK? ›

The cost of mortgage advice can vary from around £400-£500 to no direct fee at all, with the mortgage broker instead receiving commission from the lender. Sometimes the broker will charge one or the other, and in some cases they will receive both a fee and a commission.

What is a substantial disadvantage to using a mortgage broker? ›

What is a substantial disadvantage to using a mortgage broker? The broker may charge more points and higher closing fees than a traditional lender.

Are mortgage rates going down UK? ›

UK mortgage rates have gone down since they spiked last autumn and are expected to gradually return to pre-pandemic levels. Mortgages reached 6.94% last autumn – the highest level since 2002. But products are now on the decline.

Do mortgage brokers offer better rates than banks? ›

banks. Are brokers better than banks for getting a mortgage? Mortgage brokers typically have two main advantages over banks. They offer access to a wider selection of mortgage products and they can leverage their relationships with multiple lenders to get their clients better rates.

Can a mortgage broker get you a better interest rate? ›

If you want to check that you still have a competitive rate, a broker can reach out to your lender on your behalf to check if they can offer you a lower rate.

What is one advantage of using a broker? ›

They consider multiple plan options and negotiate on your behalf to find the best value for your coverage. Their expertise and existing relationships with various companies give them a broader understanding of the offerings available.

Is it good to talk to multiple mortgage brokers? ›

Applying to multiple mortgage lenders allows you to compare rates and fees to find the best deal. Having multiple offers in hand provides leverage when negotiating with individual lenders.

Do mortgage brokers assume risk? ›

Many mortgage brokers assume that their repurchase obligations are limited to instances of fraud or gross negligence. Similarly, mortgage bankers may believe that their repurchase risk is significantly lessened when the investor performs or oversees the underwriting on the loan.


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