Why a mortgage broker?

There are many reasons why you, the client would use a mortgage broker in order to source your mortgage. Firstly, however it is important to highlight the different types of mortgage broker that are out there.

There are 3 main types of mortgage broker that operate. They are:

  • Tied Mortgage Brokers – This is where you, the client would be offered a mortgage selection from just one provider. An example of this would be your bank.
  • Multi Tied Mortgage Brokers – This is where you would be offered products from just a select panel of lenders. There are many mortgage broker who operate this way.
  • Whole of market Mortgage Brokers – This is where you would be offered all of the mortgage products on the market made available to mortgage brokers.

We at One2One Mortgage Solutions are a whole of market Mortgage Broker meaning we offer you mortgages from the whole market, not a single provider or a select panel.

The reason that many people do not use a Mortgage Broker is due to the assumption that they will be charged a fee by the Broker to arrange their mortgage. Many Brokers do charge a fee so this assumption is a fair one to make, however at One2One Mortgage Solutions we do not charge a Broker fee for residential mortgages like many of our competitors. This is something the consumer needs to be aware of. Broker fees can range from hundreds of pounds to the thousands believe it or not! So the fact we at One2One do not charge a broker fee for residential mortgages is a reason why many people come to us for whole of market advice.

The question I hear you asking is “Ok, you don’t charge a fee but how do you get paid, how do you make money?”

Like our competitors who do charge a broker fee we get paid a commission directly from the lender for arranging the mortgage. Unlike our competitors who charge a broker fee AND receive a commission from the lender we at One2One just receive the commission from the lender. The reason for this is that we want to build long lasting relationships with our clients and receive referrals and we believe by not charging a broker fee is the best way to create a long lasting customer relationship.

We have already spoken about the 3 main different types of Mortgage Broker, the tied adviser, the multi tied adviser and the whole of market adviser.

The main advantage of arranging your mortgage through a whole of market Mortgage Broker like One2One is the large range of products that you the client will have access to and also the vast experience and knowledge that a Mortgage Broker brings to the table.

Furthermore lenders offer exclusive deals to mortgage brokers that cannot be accessed on the high street, giving the customer even more choice.

When looking for a mortgage it is very similar to food shopping. Why would you do your main shop in a convenience store that only sells there own brand or at best a very small selection of brands to choose from? The answer is that in the main people wouldn’t, they would do their main shop at a Supermarket, be that Asda, Sainsbury’s, Morrisons, Aldi or Lidl. This would be due to the fact that they would want to have a wide selection of goods and brands whilst also hopefully being able to buy at a much cheaper price than the store.

This analogy works well with mortgages in that a Mortgage Broker offers that ‘Supermarket’ type option that your bank or building society cannot offer you. You have access to hundreds of products from all across the high street and beyond.

Experience and knowledge of the mortgage market is a key reason to use a Mortgage Broker. The main issue clients have in trying to get a mortgage is being declined. This can happen for many reasons, unfortunately this can sometimes be due to that client needing to be seen by an experienced and qualified adviser.

The job of a Mortgage Broker is to perform due diligence with the client in order to provide the client with the best advice and also if proposing a mortgage to a lender to have the highest chance possible of it being accepted.

At One2One we pride ourselves on this. We ensure all our clients have access to their credit reports before we give advice ensuring we are in an informed position to place your mortgage with the correct lender. Believe it or not there are so many different reasons why a lender could decline your mortgage application and they go beyond the obvious reasons like affordability and low credit. It could be the construction of the property you want to buy, or your employment status and many other variables. This is where the Mortgager Broker’s experience is invaluable in placing the case as they will know which lenders will be the best route for your mortgage application.

In recent times Mortgage lenders have massively tightened criteria with the Mortgage Market Review meaning using a Mortgage Broker is more prevalent than ever. A Mortgage Broker can give you that peace of mind guiding you through, from telling you what you can borrow based on the lenders affordability calculator to what it will cost via their mortgage sourcing systems and many different mortgage products.

What about the convenience that using a Mortgage Broker offers you? At One2One Mortgage Solutions we don’t just offer appointments at our Cwmbran Town Centre Office but we can arrange an appointment at your home during the day or during the evening to suit you.

As important as your mortgage is protecting your mortgage and this is something again a Broker is ideally placed with their expertise to help. This is something we will address in a soon to come blog.

In summary, an independent whole of market Broker will look for the best mortgage for you based on your circumstances and always remember your Mortgage Broker is on your side and is there to help you every step of the way to achieve your mortgage goals. As a client having that safety blanket of a mortgage & insurance expert helping you along the way takes so much of the stress out of the mortgage process.

An independent Mortgage Broker will give you access to far more products than going direct and will offer an unbiased service and advice.

I hope this blog has given you a useful insight into the role of the Mortgage Broker and how a Mortgage Broker should be your first port of call when you are ready to purchase a property or remortgage your existing one.

Next Friday I will be writing another blog for you all and we look forward to any feedback you may have. In the meantime if you would like to book an appointment with us please contact us:

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