Where to get the best mortgage
Buying a house is one of the biggest assets you are likely to purchase and to do this you will likely require a mortgage. A mortgage is a type of loan that is used to finance property and when finding the right mortgage, you have different options for finding the best fit for you and your family:
1. Online mortgage search
You can search for a lender and product yourself, usually starting online.
This could be an option if you have the confidence and especially required knowledge. You need to ensure you are making the right decisions and then presenting the best application to get the accepted decision you require. These decisions for example could be based around your budget, likely income and expenditure or which lender and product are right for your circumstances.
There are various considerations, for example, is this the right length of product in years and how does this rate compare to other lenders? The real negative to this approach can be getting it all wrong. If you do not fully understand what you are signing up for, it could become much more costly over the long run by means of expenses or even your credit file being affected.
The Money Saving Expert website has a useful tool to compare current mortgage rates: Mortgage Best Buys. However, we would recommend speaking to a mortgage broker to ensure that you select the best mortgage for your financial circumstances.
2. Going directly to your bank
The next option is to take out a mortgage with your current bank or building society.
The bank or building society you use day to day are likely to offer mortgages. They can usually arrange an appointment with you via phone or face-to-face to speak with an in-house mortgage adviser. The adviser can assess your affordability, then tailor the right products with your bank to your needs.
This approach tends to be very simple, as the bank have your expenditure on their systems and just require the additional income documentation to move forward with a credit search to qualify for their rates.
For me, this is a limited option to mortgage search, as the products you are advised to take are exclusive to your bank or building society, meaning you aren’t waying up whether this is the most cost-effective option or even guaranteed acceptance.
3. Using a mortgage broker
Last but certainly not least, you can use a mortgage adviser or mortgage broker.
A mortgage broker can search the market on your behalf and recommend the best deal for your circumstances.
A broker might also be able to find deals you can’t on your own.
They can certainly improve your chance of being accepted for a mortgage, as they have the experience and knowledge to assess which is best suited for your particular circumstances.
This is particularly important if you have for example adverse credit, self-employment income, maybe a small deposit or especially require the need of a specialist scheme like Help to Buy or Shared ownership.
Firms offering mortgage advice must be regulated and authorised by the Financial Conduct Authority (FCA). Details of all regulated firms are held on the FCA Register.
As many lenders have different lending criteria, a mortgage adviser or broker could be the best option as they will do the necessary works involved to ensure you are moving to application the best mortgage fit.
It is not always as easy as just choosing the best rate or most cost-effective product, as lenders require you to have certain specifications for example, employment types, income types, the right property type, time within employment and much, much more!
Why use a Mortgage Broker?
In my opinion the best option is to locate a mortgage adviser or mortgage broker to offer a friendly and professional service. Exactly as you would for your accounts, legal requirements or even plumbing and electrics.
There are for sure risks involved in choosing your own mortgage, there are restrictions involved in using your bank or building society but using a regulated mortgage adviser will ensure that for any reason the mortgage later turns out to be unsuitable, you can make a complaint.
If necessary, you can take your complaint to the Financial Ombudsman Service. This means you automatically have more rights when you take advice. The latter is much less likely whilst seeking professional advice, as they will put you in a position to make an informed decision.
Not getting advice means you must take full responsibility for your mortgage decision. If you don’t get mortgage advice, you could end up:
- With the wrong mortgage for your situation, which would be a costly mistake in the long run.
- Applying for a mortgage that doesn’t fit the lender’s lending criteria. Possibly affecting your credit score which then has a knock-on effect with future applications.
When should you first contact a Mortgage Broker?
For me, it should be at the start of your journey. Whether you are a first-time buyer, home mover or looking to remortgage it will save you time and effort. It will also ensure you are fully prepared for this big commitment.
There are real reasons to use a Mortgage Adviser or Mortgage Broker. They’ll check your finances to make sure you are going to meet the lenders affordability stress test.
The broker may well have exclusive mortgage products that are not available elsewhere, even direct. They often complete the necessary applications, which these days via electronic platforms minimising paperwork. They will help you take all costs into consideration, as well as features included beyond just an interest rate. And they should recommend an appropriate lender and mortgage for you, which you are likely to be accepted for.
Read my blog on What will a new mortgage cost?
Which should you choose a Mortgage Adviser or a Mortgage Broker?
From an advice perspective you should get a similar service from either, with regards to the upfront advice. That said from application a Mortgage Broker will support you with your journey through to completion. This involves corresponding with your estate agent or developer, liaising with your conveyancer, and of course, ensuring you have a legally binding mortgage offer from an accepted mortgage lender.
Local mortgage broker in Hitchin
If you are looking to find an experienced and established Mortgage Broker, look no further than Fortune Financial Planning. We offer free upfront mortgage advice which no obligation.
We will ensure you can have an appointment at your convenience, whether that be day or evening, weekdays, or weekends. Throughout the past couple of years, we have offered advice face to face, over the telephone or via a Zoom or Teams video call.
Either of these options are available at your request and also confirm that we can provide mortgage advice and service nationwide. Please call us on 01462 510400 option 2 or create an enquiry via our website www.fortunefinancial.co.uk
Advising Director, Fortune Financial Mortgage Brokers, Hitchin