5 things you need to know about guy richard mortgage broker
Anew house is an expensive investment. In addition to the primary expenditure of the home, it may seem like you are always paying additional expenses like stamp duty, arranging and valuation fees, and mortgage broker fees. It makes sense to want to cut costs wherever possible, yet working with a mortgage broker is frequently the key to success.
1. What exactly is a mortgage broker and what do they do?
In essence, a licensed mortgage broker is a financial advisor with a focus on mortgages.They search for the best mortgage with rates that fit your spending limit. Due to their extensive understanding of the housing industry, they are able to recommend the best lenders and mortgage offers available to you.They can also show you your best possibilities. Since they owe you a duty of care, mortgage brokers must be able to support any suggestions they make.
Mortgage brokers will base their mortgage recommendations on your individual circumstances. Some of the factors they use include:
● The size of your deposit
● Your monthly repayment preferences
● Interest rates
● Personal information such as your credit history and outgoings
This information helps them to see what mortgage offers you’ll be eligible for and how much you’ll be able to borrow
2.Are all mortgage brokers the same?
Mortgage brokers come in different shapes and sizes. But there are two main types:
Tied or multi-tied mortgage brokers
One lender or a group of lenders are directly connected to this kind of broker As a result, they have far less options for the mortgages they can suggest. However, on the plus side, they frequently have access to special offers and incentives due to their personal relationships with lenders. But because they are bound to a specific group of lenders, they won't be able to provide you with some possibilities you might find elsewhere, even if they are superior.
'Whole of market’mortgage brokers
A"whole of market" broker has substantially broader market coverage. They are typically independent mortgage consultants who have no affiliations with any particular mortgage lenders. In other words, you are not constrained to the lender or lenders that a "linked" broker works with. You'll have access to a wider range of mortgage possibilities, and as they don't have any connections to certain lenders, they can give you entirely unbiased guidance.
It's important to keep in mind that even "whole of market" brokers don't always cover all available options. However, they do need to cover enough selections to be representative of the entire market in order to earn the moniker "whole of market," so you'll still be receiving a vast selection of options.
3. What are the advantages of using a mortgage broker?
You can go directly to mortgage lenders yourself, but you could miss out on some of the advantages a broker brings:
● They have considerable understanding of their field and are trained, competent specialists. Since they are obligated to do so and are in the greatest position to do so, they can ensure that you don't get an improper mortgage.And you can file a complaint with the Ombudsman if something goes wrong.
● They can help you with the "red tape" aspect of buying a home and they can save you time by comparing the market for you.
● They'll probably enable you to save money Guy richard mortgage broker can either find you discounts because they have access to thousands of lenders or because they are connected to particular lenders and may be able to secure you an exclusive deal. In the end, you have a better chance of getting better rates with a mortgage broker than without.
4. Is there anything I should be wary of?
You will typically have to pay for the services of a broker, whether you choose a linked broker or a "whole of market" broker.
The majority of licenced brokers are compensated through commission, which is a portion of the mortgage loan you are given. This often amounts to 1%. This will be paid straight to the lender, who will also profit from the lender's commission. The majority of independent brokers impose an upfront flat fee, usually in the region of £500. Make sure to find out the brokers' payment terms. They must be totally open and honest about their pricing and charge structure.
Additionally, keep an eye out for brokers who are ready to cross-sell you on additional things like insurance. Estate agents who urge you to use "their" broker should be avoided. In fact, you are under no need to utilise a broker at all. Comparing various brokers is in your best interest because certain lenders provide special rates if you apply directly.