• Twin Pine Mortgages

Everything you need to know about Mortgage Brokers

Regulated by the Financial Conduct Authority (FCA), a mortgage broker fully understands your specific financial needs and circumstances and aims to find the perfect lender that suits you. Additionally, they provide you with the best advice and recommend the ideal mortgage that encompasses all your needs. Once you have decided on your mortgage with your broker, they will then take you through the process of completing your mortgage application.


Is a mortgage broker right for you?


If you’re unsure whether a mortgage broker is right for you, you can be assured that they are highly qualified and will only give you advice that is personal and relevant to your circumstances. Mortgage brokers also have the advantage of being able to access mortgage deals that may not usually be accessible to the general public, as well as the ability to advise you on which lender is most likely to accept your application. Mortgage applications are known for their lengthy amounts of paperwork, but you will find that mortgage brokers will often remove most of this to ensure a smoother and simpler process. A broker also gives you peace of mind that if you ever receive incorrect advice, you may be able to make a claim.


Why use a mortgage broker?


A mortgage broker not only provides a duty of care to their customer by recommending mortgages only suitable for the individual, but they must also be able to justify their decision. If you need to purchase a property much quicker than usual, your mortgage broker can help to achieve this with their extensive knowledge of the industry and lenders. It’s a well-known fact that finding the right mortgage and moving house can be a stressful part of anyone’s life, so mortgage brokers endeavour to take away as much of the stress involved as possible. Due to advisors working with many of the same lenders, you will find that they have a much more direct route of progressing your mortgage application. The final and more important reason a mortgage broker might be right for you is their duty of care. Mortgage brokers will always ensure that you are fully protected in case of the event of death, critical illness and even redundancy. Ranging from life insurance, payment protection all the way down to home insurance, your broker will discuss whether you already have any of these in place or if you may need them.


How do mortgage brokers approach fees?


Each mortgage broker will work differently in the way they charge to give you your mortgage advice. This could range from charging you a fee for advice, or offering the advice free and earning commission from the mortgage lender once you have decided on a particular mortgage.


What are the different types of fees?


  • Fixed fee: a single fee that you will be charged in the totality of the broker’s advice to you.

  • Hourly rate: charged for how long they work with you, i.e. the more time you spend with them, the more you will be charged for their time.

  • Percentage fee: the mortgage adviser will receive a percentage of the total mortgage loan as commission. This particular fee must always be disclosed to you.

  • Combination of fees: a combination of the different fees mentioned.

  • No fee: you may not be charged a direct fee and will most likely mean that the broker will receive a percentage in commission from the mortgage lender.


Important things to check before choosing your mortgage broker

  • Are they FCA registered? Do they hold the correct qualifications?

  • Are they independent?

  • How do they charge?

  • Do they give entire market advice?


Preparing for a meeting with a mortgage advisor


Always bring evidence of your income and your outgoings, including any other party who will be applying for your mortgage with you. It’s always a good idea to bring your bank statements and payslips to give further evidence to the broker of your financial situation. Before meeting with an advisor, make sure you know the type of property you want to buy and any insurances you may require. Mortgages can have either a fixed rate of interest or a lower variable rate that may change over time, so understand these types and which will fit best for you.


With over 40 years of combined experience, we can help you find the perfect mortgage. Try using our mortgage calculator or get in contact with us.


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