Should you seek mortgage advice?

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Getting the best mortgage can wipe out hundreds of pounds a month from your household expenses. Still, getting a little help from an independent broker to find the right deal for your situation doesn’t have to cost a penny. Find out how a broker works and if they can help you.

Should I go to my own bank for a home loan?

Nothing prevents you from going directly to the bank or the building society with which you already hold, for example, your current account. But it will only offer you its own mortgage deals, which of course will greatly limit your choice.

A mortgage broker, on the other hand, will scour every corner of the market to find the best mortgage deals for you and your situation.

But it’s important to understand what type of broker you’re using, says Miles Robinson, head of mortgages at Trussle online broker.

“A ‘wide market’ broker can advise you on products from a wide range of lenders, although this may exclude some lenders that you can only speak to directly. However, some ‘wide market’ brokers will even look for ‘direct’ products, even if they don’t work with that particular lender.

If you go directly to a lender, on the other hand, you are “on your own”, he warns: “You will have to make the request yourself and there will be no advice service.”

Trussle advisors have access to over 12,000 different mortgage offers from 90 lenders.

Free mortgage advice

Trussle, a Trustpilot-rated 5-star online mortgage advisor, helps you find the right mortgage – and works with the lender to secure it. *Your home can be repossessed if you don’t continue to pay your mortgage.

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What types of mortgage offers are available?

For the uninitiated or just the first-timers, the selection of mortgage deals on offer can be overwhelming. A broker will help you find the right deal based on the size of your deposit, your income (or joint income if you’re buying with someone else), and your personal situation.

They will explain the different types of mortgages, such as a fix or a follow-up, and advise you on the length and flexibility of the deal depending on your needs and stage of life.

What is required of me for a mortgage loan application?

While, of course, you will need to produce the documents required for your application – including bank statements, payslips and various forms of identification – a mortgage broker will conduct the mortgage process on your behalf.

This means from the initial mortgage search, through the application process, through to offer and completion (i.e. when funds are released).

A broker can also explain how key information – such as childcare costs or an annual bonus – should be presented.

All documents are now widely accepted in digital format. At Trussle you can upload them to your online profile from where you can also track the progress of your application from start to finish.

Can a broker improve my chances of getting a mortgage?

As long as the basics are in place, a broker can smooth the path to a successful mortgage approval in several ways. Here are some examples.

Assistance with credit checks: As part of your application, a lender will perform a credit check to see how well you have handled any loan in the past. The higher your credit score, the more likely you are to be accepted for the mortgage.

Trussle’s Robinson says, “A small detail like a missed payment on a cell phone bill from when you were a student could impact your credit score, making it difficult to get approved. But dealing with a past “credit problem” is part of a broker’s daily job. They will assess your finances and do what they can to improve your chances of being approved.

A broker will also be familiar with how each lender’s affordability ratings work, which again can give you the best chance of acceptance.

Relations with lenders: Brokers may also have longstanding relationships with mortgage lenders. They will, for example, have regular conversations about criteria updates and policy changes. All of this can help you get the all-important green light for your loan.

Help if your income is not simple: If you are self-employed and/or your income is uneven or from different sources, the experience of a broker can be particularly useful.

Robinson says: “Brokers are experienced in handling these types of requests – which can potentially be more difficult – and will target your request based on what they know of a bank’s or bank’s loan profile and criteria. ‘one construction company in particular.”

What happens once my mortgage is in effect?

A broker will have records of when your mortgage transaction started and remind you when it’s time to remortgage again, reducing the risk of slipping on your lender’s expensive standard variable rate (SVR).

And if you’re looking to borrow more against your current mortgage (for example, for home renovations), a broker will also be able to tell you how much you could borrow, as well as the best way to apply.

How much does a broker cost?

While some brokers charge an ‘advisory fee’ or ‘processing fee’ for arranging your mortgage – which can amount to around £500 – many others, including Trussle, are completely free to the client.

Instead, they take payment from the lender when you complete your mortgage or remortgage. This is done via what is known as “power of attorney fees” or “procedure fees” for short.

But an advisor will not receive a commission based on the amount of your loan or the choice of lender. Their only motivation is to get you the most suitable offer.

Finally, if you choose to use a broker and change your mind, there are no strings attached. You can choose to opt out of the process or even go directly to the lender.

Free mortgage advice

Trussle, a Trustpilot-rated 5-star online mortgage advisor, helps you find the right mortgage – and works with the lender to secure it. *Your home can be repossessed if you don’t continue to pay your mortgage.

Compare mortgages

About Nicole Harmon

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