How do borrowers know that their mortgage broker is seeking the best possible deal for them? The latest FCA Interim Mortgage Report has indicated that some 30% of borrowers have not had the cheapest mortgage available to them. Does this constitute value and good service from mortgage brokers?
We need to ascertain what value is in these situations. Whilst the cheapest deal is often the primary criteria, it isn’t always the most relevant area of concern. That’s not to say that your mortgage broker isn’t always looking for the most cost-effective option. But there are other elements that come into play.
A good mortgage broker is a fantastic communicator and relationship-builder. They’ll make it their business to understand their network of nationwide lenders, understand the process, nuances and lending criteria of them all. They’ll also take time to understand their clients and their value criteria. And this is where the magic happens.
Picture this. In order to be able to secure a dream property, a couple has been required to complete a deal within two weeks. One partner is self-employed and the other is a teacher, however, both incomes need to be taken into consideration to achieve the loan amount required. The mortgage broker dealing with this case has six lenders willing to make an offer to his clients. In an instance such as this, the time is the priority and so, with a case lead-time of 14 days, two of the lenders are discounted, even though they are slightly cheaper than the remaining four. Now our broker assesses the remaining four, all of which can process the case within the time limits and can now look for the most economical deal.
In order to deliver value, a mortgage broker will indeed, look at the bigger picture. They will ascertain what is important to the client, prioritise their client’s value criteria and use this to filter down to the best possible deal and most appropriate lender.
Best isn’t always cheapest. Best is what’s best for you.
For a no obligation discussion about your mortgage, whether you’re a first time buyer or are looking to re-mortgage, please call a member of the Mortgage Search Go team on 0844 69 333 60 or click here to contact us.
Please note: Your home may be repossessed if you do not keep up with repayments on your mortgage.