Mortgage brokers and mortgage advisers have been around for a long time, and there is no one who has more knowledge about the property market (and the deals available within it) than a competent, qualified, and up-to-date (not to mention well-connected) mortgage broker or adviser.
If you are looking for a piece of property for your needs, whether you need it for personal use as your home or you would like to make an investment in residential development or a buy-to-let opportunity, there is no doubt that a mortgage broker’s help and guidance can go a long way.
What a mortgage broker can do for you
First of all, a mortgage broker has the best knowledge when it comes to real estate, lenders, and more. A good broker should be able to scour the real estate market for you and help you locate the best mortgage deal for your needs. If you enlist the services of a mortgage broker, they should already have access to a plethora of lenders, each with their own criteria and preferences. Aside from this, dealing with a mortgage broker will give you an edge over other borrowers since lenders will look more favourably upon you.
As a general rule, a mortgage broker should be able to give you advice on whatever type of mortgage or property deal you are looking for. They should also be able to give you advice on mortgage incentives or schemes from the government, such as shared ownership, a NewBuy scheme, and more.
A good broker should also be a big help when it comes to giving you the right information about what lenders are looking for – their criteria, in short. The broker should know if a lender will or will not approve a mortgage application, and if a lender will not approve your application, they can recommend a lender who will.
What to look for in a mortgage broker
You want to have as many options as possible when it comes to lenders and mortgage deals so that you are sure of getting the best deal around. Therefore, when looking for the right mortgage broker, look for one who can check all the available lenders and deals in the area you are interested in. Find out what your broker can offer you from the beginning – if their options are limited (meaning they do not have access to a whole slew of mortgage deals or lenders), then you may want to opt for brokers who have more clout and access to whole-of-market mortgage opportunities so you have more choices as well.
How mortgage brokers receive their income
Mortgage brokers have two basic ways of making money from a mortgage arrangement – either through commission or through a fee. If the broker is working on commission, this will not affect your mortgage rate directly. The commission is paid by the lender to the broker, and this is referred to as the ‘procuration’ fee. Remember: a good broker will let you know the exact amount of commission they will receive from the lender.
Brokers can also collect fees directly from borrowers, which can often be on top of their commission. The fee can also be charged as a replacement for their commission, where they charge you a fee but give you a refund on their commission.
If you want to receive prompt, relevant advice on the best mortgage deals in the UK, look no further than a London mortgage broker from Seacco, for example. Seacco mortgage brokers and advisers have years of knowledge and experience under their belts regarding residential development finance, commercial mortgages, joint venture funding, and a lot more.