There isn’t a right way to go when it comes to choosing between a Mortgage Broker in Sheffield and a direct lender. It’s completely up to you which route you go down, however, if you would prefer to go at it alone than a lender may be more ideal for you. The good news for us is that most people use a mortgage broker, but here we will explain the pros and cons of both methods.
In favour of going directly to a bank or building society, you won’t have to pay a Broker fee, so you’ll make yourself a saving there. Years ago, there may have been an element of “the bank manager knows my finances inside out” but all that went by the wayside when the credit scoring came in. Another potential advantage is that some lenders offer exclusive mortgage products that are only available direct.
They do this as they like to attract a good spread of business from consumers and brokers alike and they can turn exclusive products on and off like a trap. You may find that the exclusive products are available via Brokers and not the branch too.
From 2014 onwards, lenders were banned from selling mortgages on a non-advised basis when there is any customer interaction. Until then, some applicants felt they had received advice even though they hadn’t. They weren’t able to benefit from some of the customer protection that goes along with real advised mortgage sales.
It took them a while, but lenders have had to come to terms with this massive change. Towards the end of 2014, it was more than likely you would be waiting for more than a month just for an appointment. This can still happen now and is no good if you have just had an offer accepted on a house. These issues started becoming more and more common, so people decided to try a Mortgage Broker in Sheffield instead.
As a trusted Mortgage Broker delivering Mortgage Advice in Sheffield, we aim to provide you with the best service possible. We offer same-day Mortgage Advice in Sheffield. That means, when you call us, we try and connect you with a qualified Mortgage Advisor in Sheffield either immediately where possible or at least the same day.
Comparing mortgages in the past was quite difficult. Now, finding a competitive mortgage online is fairly easy. The difficulty is trying to find a lender whose criteria and mortgage features are tailored to your individual circumstances. Just be aware though that the deals with the lowest interest rates tend to carry high arrangement fees.
Affordability is a key point too. It doesn’t matter how good a lender’s deal is if they won’t lend you enough money! Purchasing a home is a big part of your life and people want it to go right so most choose to go down the Mortgage Broker route.
Most mortgage applications these days aren’t simple, there are so many things that can make a case more complicated, for example, you may have:
In recent years, lenders have separated themselves from the competition. This is mostly by offering a better deal than the lender next door. We often find that it’s different because their margins are squeezed and they differentiate themselves on lending criteria.
For example, some lend more than others to Self Employed applicants or take a more sympathetic view on previous blips on your credit report.
Your situation is unique to you. When you explain your position to a Mortgage Broker in Sheffield, like us, then they will probably have most likely come across a similar case in the past. Hopefully, they will draw from that experience to be able to recommend the most suitable mortgage for you at the lowest rate possible.
It’s not just about getting the mortgage by the way. Even if the application itself is straightforward, our clients rely on us for so much more. For example, we will discuss how much they are going to offer on the property they are buying, and we can recommend other professional services such as solicitors/explain the different types of survey and protection available.
Another key aspect is that brokers tend to be far more responsive than the lenders’ direct propositions. Out of hours and weekend appointments are common-place, as are responding to clients’ emails late on an evening.
One of the overlooked factors in terms of why most applicants prefer using a Mortgage Broker in Sheffield is that everyone is busy these days and you simply might someone to handle the full transaction for you to take the stress out of the situation. Professional applicants really see the benefits of these. They have clients of their own that they charge out their services to and they can see the reasons to have an expert on board.
Perhaps lenders will in the future want to take back more clients from Brokers. If this does happen I think it’s fairly unlikely that they will staff-up their branch networks. More likely they will make investments in technology to transact with customers online.
That’s great for clients that are happy to do business that way, let’s say a straightforward product switch. For most people though, they enjoy having the “human touch” to their mortgage application process.