Why use a mortgage broker?

I find it very strange that all mortgages are not arranged via an independent mortgage broker.

Whether you are buying a property for the first time, moving home or looking to remortgage, the same options are open to you when arranging your mortgage.

Go to your own Bank or Building Society, stay with your existing lender, use the services of an independent broker, utilise the services of an Estate Agent, search the internet and apply direct.

From the options above, the only way that you will ensure that you obtain the best deal is to use an independent mortgage broker.

"He would say that", I hear you clamour, "only interested in increasing his own business".

It is an actual fact though and generally, those that do not use an independent broker, go elsewhere because they have been bullied by an Estate Agent (your offer will look much better if we arrange your mortgage!), you cannot be bothered and use your own Bank or stay with your existing lender, or you think you know better than a qualified advisor and arrange the mortgage yourself!

Banks and Building Societies should actually receive very few "direct" applications - without shopping around, how can you possibly know you are receiving a good rate?! This method is for the VERY lazy!

Estate Agents must surely have a conflict of interests? They are morally obliged to act for the seller of the property. Furthermore, in most cases, you will find that although they advertise their services as "independent", they do not use all lenders and therefore you will never know if you have received the very best deal. Under the Estate Agent's Act, they are not allowed to insist you use their mortgage advisor - this is ILLEGAL. Do NOT be bullied!

The people that try to arrange their mortgage direct are the strangest of all the above! I would agree that there is an enormous amount of information available on the internet, but who would want to spend all that time researching something, when a qualified broker will do that free of charge?

There are several other reasons why using an independent broker is the only sensible way to proceed:

Not all lenders deal directly with the general public - some will only accept mortgage applications via an authorised mortgage broker.

Many more mortgage products are available via a mortgage broker. Lenders would prefer to do ALL their business via mortgage brokers as this reduces their costs. For this reason, many lenders offer incentivised products via brokers to give customers a reason to choose this method of application.

When searching online, it is almost impossible to compare products on a like for like basis - lenders have different variable rates - valuation fees / arrangement fees / legal fees vary from one lender to another - exit fees are different - reversion rates are different - the ability to port the mortgage if you move varies - the rules regarding further advances varies - the list goes on and on and on.....

I rest my case - why would anyone not use an independent mortgage broker, when it does not have to cost them any money at all!