The chances are there will be a dozen or so mortgage brokers in your local area plus hundreds you could choose from online. So how do you pick the best one?

First off what exactly is a mortgage broker? Well they're basically just a financial adviser with specialist knowledge on the mortgage market. They'll also have access to mortgage sourcing software which will help find the best product available based on things like your LTV (loan to value), income and property value.

Whole of market?

A whole of market mortgage broker will search and recommend products from the whole of the market. Some mortgage brokers will only recommend products from a selected 'panel' of lenders (so they can get higher commission rates or get access to exclusive products etc). So if there's a better product with a lender not in that panel then you won't be told about it and may end up paying more with your mortgage repayments.

Do they include direct deals?

Even 'whole of market' brokers may not include direct deals with banks and building societies that you may see advertised. Some of these 'direct deals' won't pay any commission to the broker so they don't include them or brokers that do may charge you a higher fee so it's an important question to ask before just going with the cheapest broker as you may end up paying more in the long run.

How will they be paid?

Some brokers will charge you a free while others are fee free and will make their money by taking a commission from the lender which is normally a % of the value of your mortgage. However they charge they must tell you up front.

Online/face to face/phone service

It it's a local mortgage broker then it's likely they'll offer a face to face service either in their office or a location suitable to you. If you've found them online they may only operate a phone service during specific hours. It's important to ask how they operate and if they're can be contacted via the phone/in person/email to answer any questions you may have about your application/mortgage search.

How to find a good mortgage broker

The important bit of actually finding a mortgage broker can be done by asking friends and family for any personal recommendations of local brokers they've had good experiences with. Alternatively you can look online at Find.co.uk who list every mortgage broker or google your area + mortgage broker.

 

Useful Links

Money Saving Expert - Finding a cheap mortgage.

 

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