There are countless reasons to use a mortgage broker when buying your first home. In contrast, there is perhaps only one reason why so many first-time buyers decide not to call on the services of a mortgage broker. Quite simply, the majority of first-time buyers are eager to save as much money as is possible. That said, is foregoing the expert advice a mortgage broker can offer really a financially savvy choice to make? To answer that, consider these three reasons why it may prove the opposite.
Experience
Through opting to forego the services and perceived expense of a mortgage broker when buying that first time home in an attempt to save money, many first time buyers are actually costing themselves a lot more, and not just financially; the real irony is that it is the direct lack of experience and expertise of the first time buyer that leads so many of them to make decision o forego the perceived expense of a mortgage broker’s services. Then, it is important to remember: mortgage brokers exist for a reason…and that reason is not to exploit would-be lenders, but assist them.
Then, for anyone with little or no experience in buying property, it is doubly important to make a point of at least researching the facts when it comes to what a mortgage broker is, does and can consequently do for you.
Expertise
The property market is complex and ever changing. Hence, those who dedicate their careers to understanding and keeping not just up to date but ahead of it, are invaluable to anyone buying property – not least those with no prior experience or expertise themselves.
Accredited and reputable mortgage brokers such as those employed by major mortgage broker companies like Mortgage Force Worcester do not just in actual fact save mortgage lenders money; mortgage brokers save their clients valuable time, unnecessary stress and can even save a client’s credit rating from taking a knock whilst searching for a mortgage. Not sure how applying for a mortgage could even potentially affect your credit rating? The answer is to ask a mortgage broker.
As a first time buyer, no amount of research into the current property market in the UK will make you an expert; this is why focussing your research on finding the right mortgage broker is so important if you want to secure the right mortgage.
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For those inclined to think experience is less important than expertise and that becoming an expert is possible – you may well be right. Unfortunately, when it comes to getting the right or best mortgage deal experience and even expertise are often not enough.
To explain, and to dispel any misconception that mortgage brokers are disliked by mortgage providers as they are able to ‘wrangle’ the best deal for the lender, not the provider, mortgage providers often provide their best rates, deals and mortgage ‘packages’ exclusively to potential lenders via their mortgage broker.
Why? Most simply, if there is one thing mortgage providers hate and fear even more than they love money, it is taking risks, and those who present the biggest risks to mortgage companies are first time buyers and specifically first time buyers who ‘go it alone’. Hence, many providers deter this sort of recklessness (which is not a good character trait with which to approach anyone when asking for a loan!) by only offering their best deals to mortgage brokers who can mediate, negotiate and assist both the lender and provider to reach an agreement, and an agreement that involves the smallest window of risk for both parties.
This also means that mortgage brokers do not cost mortgage lenders huge sums of cash. Instead, mortgage brokers often earn a commission based percentage fee of an overall mortgage paid by the lender – not you. Operating this way incentives buyers to seek the advice of a mortgage broker whilst in turn the mortgage broker is then passing ‘trade’ onto the lender.
To learn more about how mortgage brokers earn their wages – and who pays those wages, most importantly, the Money Facts UK Website features a wealth of information, including further reasons why mortgage brokers are the only cost effective means of getting the best mortgage.
