Mortgage Brokers Explained
A mortgage broker is a person or company that can arrange a mortgage between you (the borrower) and a mortgage lender. They will work with you directly to help you decide what kind of mortgage you need, and then find a suitable deal that matches your criteria – whether you’re a first-time buyer or looking to remortgage your current home.
Why use a mortgage broker?
A mortgage broker Chelmsford can help navigate you through every stage of finding and applying for a mortgage – to get the best deal available based on your individual circumstances.
A mortgage brokers services for example may include: helping you assess your financial situation, suggest the most suitable mortgage for your needs and searching the market to find deals that match your criteria.
The pros and cons of using a mortgage broker
There are pros and cons to using a mortgage broker.
Mortgage brokers are convenient and useful to use, especially if you don’t have a good working knowledge of the finance and mortgage markets, or don’t have time to spend searching for deals, doing the paperwork and speaking to lenders. Their access and expertise are also big pros to using mortgage brokers, using their experience and contacts to find a deal that fits your criteria.
The cons of mortgage brokers are the cost, limitations and quality. Mortgage brokers aren’t always free and can add to your costs at a time when you’re trying to save as much money as possible. Fees can vary significantly between brokers, so it’s important to shop around. Qualifications and experience can also vary dramatically between brokers.
How much does a mortgage broker cost?
Mortgage broker fees will vary from broker to broker, and are influenced by a variety of factors, such as how much you want to borrow. The average cost for a mortgage broker is around £500, but this can vary as different brokers charge in different ways, including fixed fees, hourly rates, on commission or as a percentage.