Mortgage advice is an important decision that can have long-lasting effects on your financial well-being. When considering whether to get mortgage advice, one option is to go to your high street bank. However, another option is to seek advice from a qualified independent mortgage broker.
In this article, we will compare these two options and provide some information to help you make an informed decision about which one is right for you.
What type of advice does a bank provide?
When you go to a high street bank for mortgage advice, the type of advice you will receive will depend on the bank and the specific services they offer. In general, however, banks will only provide limited advice on the mortgage products and services that they offer.
Banks may also provide advice on how to apply for a mortgage and what documentation is required. They may also be able to help you with the application process and provide guidance on how to improve your chances of being approved for a mortgage.
Additionally, some banks may offer more personalised advice based on your individual financial situation and needs. For example, they may be able to provide recommendations on the type of mortgage that would be most suitable for your circumstances, based on factors such as your income, credit score, and deposit amount.
What type of advice does an independent mortgage broker provide?
Independent mortgage brokers are qualified professionals who provide advice on a wide range of mortgage products and services from different lenders. Unlike a bank, which only offers the products and services they provide, an independent mortgage broker has access to a wide range of products from multiple lenders. This means that they can provide unbiased advice on the best mortgage options available to you, based on your individual circumstances.
When you work with an independent mortgage broker, they will first assess your financial situation, including factors such as your income, credit score, and deposit. They will then use this information to search for mortgage options that are suitable for you and provide recommendations on the best options available.
They are able to provide more personalised and tailored advice, as they are not limited to offering only the products and services of a single lender. This can be particularly helpful if you have a complex financial situation, or if you are unsure of what type of mortgage would be best for you.
What does whole of market mean?
Whole of market refers to the entire range of products and services available in a particular market or industry.
In the context of mortgage advice, whole of market means that the adviser has access to and can provide advice on all the different mortgage products and services available from all the different lenders in the market.
This is in contrast to advisers who are only able to provide advice on the products and services offered by a specific lender, such as a bank.
Will a bank be able to get me the best deal?
Whether a bank will be able to get you the best deal on a mortgage will depend on a number of factors. In general, banks are able to offer competitive rates and fees on their own mortgage products and services. However, they may not be able to offer the same level of choice and flexibility as an independent mortgage broker who has access to the whole of the market.
Additionally, the advice provided by a bank will be limited to the products and services they offer, which may not be the best option for your individual circumstances.
An independent mortgage broker, on the other hand, can provide advice on the full range of products and services available in the market, allowing them to recommend the most suitable options for your specific needs.
So it is highly likely that a bank will be able to offer you a good mortgage deal, but we feel that this is unlikely to be the best.
Do mortgage brokers get better rates?
Mortgage brokers may be able to get you better rates on a mortgage, but this is not always the case.
In general, mortgage brokers have access to a wider range of products and services from multiple lenders, which can increase your chances of finding a competitive rate. They also often have exclusive deals from lenders that only work with qualified mortgage advisers.
Brokers can only provide advice and assistance in finding the best rates available from the lenders they work with. The actual rates and fees offered on a mortgage will ultimately be determined by the lender.
But a broker can often find a solution that allows you to apply for a larger mortgage than offered by a bank. This is particularly true of CIS workers. For them a CIS mortgage would most likely offer more money than the equivalent for the self-employed due to the way that a CIS mortgage is calculated.
It is also worth considering that some lenders may offer better rates to customers who apply directly, rather than through a mortgage broker. In these cases, going directly to the lender may be the best way to access the most competitive rates.
Is it more expensive to use a mortgage broker?
In general, using a mortgage broker does not necessarily make the process of getting a mortgage more expensive. Some mortgage brokers may charge a fee for their services, but this is not always the case.
In some cases, using a mortgage broker can actually save you money. Because mortgage brokers have access to a wider range of products and services from multiple lenders, they can help you to find the most competitive rates and fees available.
This can save you money on interest and fees over the life of your mortgage.
A broker’s fee will vary depending on the broker and the services they provide. It is important to understand the fees associated with using a mortgage broker, and to weigh the potential cost savings against any fees they may charge.
Overall, while using a mortgage broker may not necessarily make the process of getting a mortgage more expensive, it can provide a range of benefits that can save you money. It is important to carefully consider all your options and to seek advice from multiple sources to ensure that you are able to find the best deal on a mortgage for your individual circumstances.
How to Choose Between a Bank and a Mortgage Broker
Choosing between a bank and a mortgage broker can be difficult. There are pros and cons to both options, but ultimately you need to decide what is best for your individual needs.
If you have a limited knowledge of the mortgage market and want access to the widest range of products and services available, then an independent mortgage broker may be the best option. They will be able to provide advice on the full range of products from multiple lenders, helping you to find the most suitable deal for your circumstances.
Also, if you have quite complex needs such as having bad credit, or needing a bridging loan, then a broker is definitely the best person to help you.
On the other hand, if you already have a good understanding of the mortgage market, or just want to apply directly with one lender, then going directly to a bank may be more appropriate. Banks can often offer competitive rates and fees on their own products, and the process may be simpler if you are only dealing with one lender.
In either case, it is important to make sure that you compare deals from multiple sources before making a decision. This will ensure that you are able to find the most competitive rates and fees available for your circumstances, and will help you to make an informed decision that is best for your individual needs.
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Sean Horton is a co-owner of Drake Mortgages and has worked in financial services, mortgages and insurance since 1988. Previously a financial adviser and a mortgage broker, he regularly writes about mortgages, bridging loans and commercial finance.
