Who knows what a mortgage broker is? – If you’re unsure, find out all about mortgage brokers right here.
Finding the right mortgage for you means putting in a lot of work. No matter if you’re a first-time buyer, looking for a second mortgage or even just looking to remortgage your home, getting a great deal on a mortgage is no easy task.
Why? Because there are just too many damn mortgages out there to choose from – looking through every single mortgage offer available could take you hours (maybe even weeks…) – and who’s got the time for that… Well, Mortgage Brokers do.
A mortgage broker’s speciality is tracking down the ideal mortgage for you – they’ll be in the know of the great deals and find the best mortgage to match your financial situation. But what are they? Luckily for you, the Zing team are going to tell you a little bit about what we do – as we’re a mortgage broker.
Find out the answer to your burning question – ‘what is a mortgage broker?’
Zing and other mortgage brokers are here to display all your mortgage options to you. Not only that, but mortgage brokers are here to guide you through all the ins and outs of your application, to make sure you’re getting the best rates, at an affordable cost and that you fully understand the mortgage process.
Because a mortgage isn’t just for Christmas… it’s for life. Which is why you don’t want to get stuck with a bad deal. That’s why it’s a broker’s job to find you a great deal on a mortgage – which is obviously a good thing.
Mortgage brokers have a professional obligation and are under strict standards set by the Financial Conduct Authority. Which means if you’re mis-sold a mortgage that isn’t right for you, your broker will be under fire. So, your back is covered when you buy through a mortgage broker.
Hands up if you think getting a mortgage is fun? No? Didn’t think so… That’s because it’s really not easy to find all the best deals, without the endless search. There’s no shop to walk into where you can get all the best mortgages laid out, it’s real work. But the fun part? Buying your new home! That’s the good bit, and the bit everyone looks forward to. So, who can help take the boring out of mortgage hunting? Mortgage brokers of course…
There are some great benefits to using a mortgage broker, as effectively they’re the go-between person between you and lenders. They make the whole process a little smoother. You can see our top 3 benefits, below:
Like we’ve mentioned above, finding a mortgage is time-consuming. Sifting through all of those deals can make your head spin, and most people haven’t really got the time to endlessly search for the best deal for them. Which is why using a mortgage broker is more time efficient. They’ll gather the best deals they can find, and even manage your application – meaning you’ve got some extra time on your hands! Let’s not forget how valuable of a commodity time is…
Everything in the process of buying a house is about the professionals. The pro builders built the house, and the pro solicitors assess the house to make sure you’re actually buying what you think you are. Your whole journey involves using professionals – so, finding your mortgage shouldn’t be any different. Professional quality service always trumps going it alone. You’ll have access to all the best deals and be quoted for a mortgage that’s right for you. Brokers know the market and know what mortgages are right for each individual. All brokers are governed by regulations, meaning your mortgage cannot be mis-sold to you. Using a broker means you’re going to get a deal that’s right for you and you’ll be well informed.
Using a mortgage broker means that you’ll be getting the very best deals for you. Finding the right mortgage is the ultimate way to save money because overpaying on a bad deal is just awful. They’ll go through every mortgage to find one that’s affordable and has a good rate, for your circumstances.
Yes, you could save even more money! Typically, on every mortgage, you’re started off on either a fixed or tracker mortgage. When this period ends (which varies in time dependent on the lender and when you completed on your mortgage), you’re put onto a Standard Variable Rate mortgage. Your broker, if you use one, will know when this is ending, and keep track of it – so, when it’s the end of the incentive period, they’ll be able to tell you if it’s better off remortgaging – to save you more cash. And, who doesn’t like saving money?
There are two specific types of mortgage brokers who operate and knowing the difference is important. Because the services they offer differ and there’s a difference in what they charge – so, it’s yes, it’s very important to know.
The two types of broker are:
An independent mortgage broker is, you guessed it, independent. Which means, they’re not tied to any specific bank or lender. It means, they can present you with every single mortgage option open on the market. The advice they give is unbiased and completely tailored to your circumstances and finances.
As for tied mortgage brokers, they’re linked to banks and lenders. Which means they only display mortgages that are from those set group of banks and lenders. Using a tied broker means you’re not going to see every mortgage option that’s out there – only the ones they represent.
However, both types of brokers must only recommend mortgages that are right for you. As a mis-sold and unsuitable mortgage can cause them serious problems and result in them losing their license. They’ll also provide you with a full document detailing your mortgage and any fees attached to it. This includes everything from your mortgage amount and mortgage term, right down to what you’ll be paying before and after your incentive period. If you want to full range of options, try and go for an independent mortgage broker.
Yes… next question? Okay, we may seem biased, but it’s probably the best option for you. If you want to save time and money, as well as know every option open to you, it’s probably best to enlist the assistance of a mortgage broker to help you navigate your application and search for a great mortgage deal.
Whilst you’ll probably be able to find a good deal, a mortgage broker may find you a better one. They’ll be able to help you with everything from applying to completion, and even remortgaging once your incentive period has ended. It’s a great way to take the hassle out of applying for a mortgage.
Every mortgage broker is different, so there’s no set amount that you’ll have to pay for using their services. Some brokers charge based on finding a mortgage (with a set fee), hourly or even a percentage of the mortgage you’re applying for. Make sure you inquire about fees when approaching a broker, they’ll be able to lay out the costs of utilising their services to you.
Some are inclined to use their own bank as their mortgage option. Why? Because they hold all your financial information and can provide you with a quote based on that. But remember, that’s not the whole market of mortgages. Using a broker means you’ll have full access to the market (as long as you’re using an independent mortgage broker). If you want to see all of your options, brokers may be better for you. They’ll only collect your financial information when you apply, in order to find a mortgage that’s right for you.
If you’ve decided to use an independent mortgage broker, congratulations! You’ve made a wise choice. And even better for you, you’re in the right place to get yourself a quote!
Get in contact with us here at Zing to discuss your mortgage options, one of our talented advisors will be in touch to talk you through the next step.