And are there any benefits over going direct to a Mortgage Provider?
The easiest way to force the public to seek advice is by burying an industry in indistinguishable facts and figures and that is how the mortgage industry feels to many. With the birth of the internet many feel they are taking back control, finally they can use comparison websites to tell them what is a good deal or not. Can’t they?
As with most industries, it’s not so cut and dry as that. Going direct to a mortgage provider is like going to a car sales garage that only offers blue hatchbacks. A few of you may be thinking, well that’s perfect that’s exactly what I want, but the majority reading will realise that a blue hatchback just isn’t compatible with their needs, their lifestyle. A mortgage broker has access to the entire market of cars and will sit down with you, talk about your needs, whether you’re a family man or business woman, and then pair you up with the perfect car.
According to a survey by Legal and General. They found that 31% of consumers who went direct to a lender didn’t even understand how a mortgage adviser could helpLegal and General 2019
On top of the ability to sift the wheat from the chaff, whole of market mortgage brokers have access to mortgages you simply cannot go direct for, so even if you’ve done the research you will still possibly be missing out on a more suitable mortgage simply by not using a broker.
But isn’t it more expensive to use a mortgage broker, won’t I be paying for his commission?
A common misconception is that the commission a mortgage broker earns gets added onto your mortgage ulimately making it more expensive than if you just went direct, this is not true. In reality the mortgage provider is saving money on it’s own agents, it’s own brick and mortar shops and the overheads attached to that.
Even though mortgage brokers do also usually charge a fee on top of each mortgage they complete this is usually pretty unsubstantial compared to the mortgage itself. Say if the charge was £295 for completing your £100,000 mortgage, even if the broker could only save you 0.01% compared to you going direct you would still be much better off in the long run.
Why use The Financial Detectives?
We thought we would use the last section of this blog post to tell you a little more about ourselves. As far as our fees are concerned we’ve already outlined them above for you because we believe in ultimate transparency, no hidden administration fees, just plain simple we earn commission and may charge up to £295 to complete your mortgage depending on it’s complexity.
We’re a family run firm and as such hold family values close to our hearts. There is nothing more important than family and that’s why, when you apply for a mortgage, it’s imperative that you get one that suits you and your reliant’s unique circumstances.
If you would like to learn a little bit more about us and see our faces then head on over to our About Us page.