Debunking Myths About Using a Mortgage Broker

When you’re looking to buy a house, and therefore require a mortgage product, the question of whether you should seek the help of a mortgage broker may cross your mind. If your current bank is already offering you a facility which you think is a good deal, then why do you need one?

There are a few common misconceptions when it comes to mortgage brokers which, sadly, a lot of people believe, so they miss out on all the benefits.

This article will debunk some of the most common myths about mortgage brokers so you can make a more informed decision when it comes to it.

‘Using a mortgage broker is expensive’

Although it’s true that some mortgage brokers charge a fee for their services, a lot of them are actually free. This is because, instead of charging you a fee, they receive commission from the lender when they place a deal.

‘Mortgage brokers work for the banks and lenders’

Some people think that all mortgage brokers work for specific banks or lenders meaning they won’t be able to offer a better deal. This isn’t true, however, of independent mortgage brokers.

Independent brokers have access to the whole market, meaning they are not tied to a specific lender and are completely unbiased. Although brokers are likely to have strong relationships with banks and lenders after a period of time, when they are searching for a deal they will not be swayed by any exclusivity or bias and will select the products that best meet your needs and circumstances.

‘Mortgage brokers don’t add much value to the process’

This statement couldn’t be further from the truth. Mortgage brokers search the market on your behalf in order to find a product which best meets your needs and circumstances. Not only are they able to get you the best deal, they will work with you every step of the way and they will be there to offer advice, answer questions or to help with any application or paperwork issues.

‘Going through a mortgage broker just takes more time’

You may think that going through a mortgage broker is just adding another step to the process and will make things take longer, but this isn’t the case at all. If this is your first time taking out a mortgage and you don’t have much experience with the process, then searching the market for the best deal could take you considerable amounts of time. Mortgage brokers have experience, however, and would have learnt the majority of products on the market, so it won’t take them long once they know what your needs are.

They will also be able to help you with the application process if this is something you haven’t done before, which will also help to speed things up.

‘I can’t use a mortgage broker if I have bad credit’

While some lenders are stricter than others when it comes to credit scores, mortgage brokers will know the banks and lenders that are more flexible with their criteria. Mortgage brokers are there to help you, and you have a higher chance of finding a lender that accepts applicants with less than perfect credit scores than you would by searching yourself.

Hopefully this article has cleared up any doubts you may have had and given you more understanding of how mortgage brokers work. It is ultimately your choice whether you use a mortgage broker or deal directly with the lender, but having all the information means you can be confident in whichever decision you make.