Mortgages don’t have to be complicated so why do you need a broker?

Mortgages are essentially a big loan. The majority of mortgages taken today operate on a repayment basis which is similar to a traditional bank loan, you pay capital and interest every month for the set number of years, and bingo you own your own home.

With most now having access to the internet it’s a lot easier to research mortgages and how they work before you even consider buying a home. Anyone can walk into their local high street branch (assuming it hasn’t closed down) and arrange their own mortgage if they want to, but it is a hassle and you might end up coming away with: –

It is true that most high street banks offer very similar rates to new customers give or take a small amount. However, there are big differences when it comes to how they assess your application and the amount they will lend. If you have children, loans, credit cards, bonuses, overtime, second jobs, or work as a contractor or self-employed basis you will find the amount you can borrow will vary considerably from lender to lender, which is where a broker comes into their own.

With house prices at record highs and people needing to borrow more to fund their first or next home purchase we tend to find the two questions we get asked most are:

Unfortunately, the two don’t always go hand in hand.

We have access to thousands of different mortgage products and any broker worth their salt will know which lender would be the most suitable for you depending on your financial situation. It’s not just about rate and loan amounts.  A mortgage broker is there to delve into your financial situation in more detail asking about:-

That is where it gets more complicated and where you could make costly mistakes if you decide to make arrangements without the assistance of a mortgage broker.

This doesn’t just apply to house purchases but also to remortgages and selecting a change in product with your current lender. We have seen numerous situations recently where clients have panicked due to the media frenzy and advice from some ‘unqualified’ celebrities regarding the recent sharp rise in interest rates.  This has resulted in them selecting products unsuitable for them and/or paying thousands in fees that they didn’t need to if they had taken advice from a qualified independent mortgage broker.

You might think “I don’t have time to talk to someone in detail about my mortgage” but one of the small benefits to come out of COVID (yes, there is one) is that most of us learned how to use Teams and Zoom meaning wherever you are in the world you can join in on a call to discuss what is essentially the biggest financial commitment you are likely to make. It is a big commitment and something you should always make time for.

Here at Locations, our advice is free, and in the majority of cases, we do not charge a fee for arranging your mortgage for you. In the event that a fee is payable, we will notify you of this at the outset.

So, what have you got to lose? Give us a call on 0118 449 2349 or drop us an email on info@locationsmortgages.co.uk to find out how we can help you get the best mortgage for you.