If you’re pondering choosing between a mortgage broker or direct lender at your bank, this blog is for you. We’ll explore the potential benefits and drawbacks of each option so you can make an informed decision about which is most suitable for you.
Advantages of going directly to a bank
When you go directly to a bank for a mortgage, it’s likely you will still talk to a mortgage adviser, though they’ll only be able to advise you on their own products. Benefits include:
- The application process may be shorter and slightly more straightforward with your own bank or building society – it’s easier for them to assess your income
- You won’t have to pay broker fees
- Your own bank might offer you special rates because you’re their customer
- Setting up an offset mortgage is likely to be easier – if your bank offers this type of mortgage – as you already have an account with them
- You won’t need to go through a broker to ask the lender questions – you’ll be able to do this directly
Benefits of using a mortgage broker
An experienced, trusted mortgage broker:
- has a complete, thorough understanding of the whole mortgage market. They’re familiar with different lenders’ criteria, are adept at handling mortgage applications for clients with various financial circumstances and know who is likely to decline your application, and how to help if you have been rejected for a mortgage. This saves you time, potentially saves money and avoids negatively impacting your credit score.
- is not tied to a particular lender, therefore have your best interests in mind.
- is able to assist with your mortgage application and ongoing communication. They can even complete your application for you.
- may have worked with a lender many times and be able to tip an uncertain application in your favour.
- will have access to specialist lenders that you may not otherwise have been able to approach.
- can break down complicated mortgage information, so you are clear on proposed commitments, and how you can get the most from your mortgage.
- can compare deals, fast. They will already know about the most recently released rates and products available.
- may be able to negotiate deals not available to the public. Some lenders are only accessible via a broker.
- can advise on suitable insurance products.
- advise you on how to get your mortgage affairs in order if you are currently not able to secure one.
