Buying a new home isn’t the cheapest of purchases you’ll make in life. Therefore, you want to be sure you have carefully selected the most suitable mortgage from the right mortgage broker to fit your needs, rather than feeling completely overwhelmed at the options that are available to you. There are many different ways you can find a mortgage broker; whether it be online or through a recommendation, it’s all about finding one that provides the service you need and deserve. So here are some top tips on how you can decide on the best mortgage broker for you:
There are two main types of mortgage brokers
Although you may believe that all mortgage brokers are the same, there are two main types to be aware of that could influence the terms and conditions of your loan:
This type of lender is either tied to one specific lender or a group of lenders. Therefore, there are limitations on the type of mortgage they can recommend. Despite this, their close relationships with banks could mean you can secure a good deal you wouldn’t find anywhere else.
An independent mortgage broker is not influenced by external parties to make decisions and is free to give you unbiased advice. They will be more inclined to have your best interests at heart, rather than that of the bank or estate agents. This means that there are fewer limitations to contend with, and you’ll have a greater amount of options available to you.
Be aware of mortgage broker fees
When contacting a mortgage broker, you may be offered a very small monthly mortgage payment plan that seems extremely attractive to accept. In most cases, this is too good to be true. Often, when figures are far below the average, it means that you’ll end up paying on added fees in the future that you don’t yet know about.
Whereas, in other cases, you will have to pay commission for advice from a mortgage broker and an arrangement fee. Before contacting mortgage brokers, do all of your workings-out beforehand so you can be sure that the initial low price and all of the extra fees have been added and check the mortgage broker’s rules and regulations. This will ensure you’re choosing the right mortgage broker to suit your financial situation.
Work out your budget beforehand
Back in 2014, new rules were put in place under the Mortgage Market Review (MMR) which means that brokers now go through your monthly budget carefully to work out how much cash you have to spend on a mortgage and most importantlyto check that you have enough. Every mortgage broker will have a different maximum limit of how much you will be able to borrow and what your monthly payment costs will be once this assessment has been carried out, so calculate how much you would be comfortable pay per month to get a rough figure.