Updated: Mar 7
So, I recently ran a poll on Facebook asking people if they went direct to the lender or used the services of a broker to gain their last mortgage deal.
It was interesting to see that the figures came back as 78% went via a broker, whilst the other 22% went direct to the lender. This left me thinking, why did the 22% go direct rather than use a broker and vice versa. Now these figures roughly back the findings from 2018, where it was suggested that 74% of the mortgages arranged that year were undertook by the intermediary channel. So, are the 22% (or 26% from 2018) doing their own research or are they just going to who they bank with for ease?
Now for these people that went direct rather than use a mortgage brokers services, when the current mortgage offer expires or if they decide to move, why should they come to a mortgage broker rather than going direct again?
The benefits of using a mortgage broker are much more than just a comparison service, not many people will know that we have access to lenders that don't deal with clients directly. So if you are going on comparison sites, these lenders will not show up and you may not be getting the best deal. A mortgage broker will also make sure that you get the right lender the first time, as not every lender will lend on certain build properties, complex income structures and many more factors that they use to decide on lending or not. Did you also know that mortgage brokers get exclusive rates that you are not able to gain by going direct? Some lenders even give the mortgage broker lower rates then if you were to walk in to the same bank, and this is due to the intermediary channel having such a bigger percentage in lending.
Another big factor that a mortgage broker has is the relationship with what we call our BDM's. Each lender has plenty of these, but we all get given a dedicated contact and it is their job to help a mortgage broker place the case with the bank that they work for and also get it to offer without any issues. So this means that if we are looking at a quirky case we can call them to discuss this and they will look to see if they can accept the case, even if it maybe slightly out of there black and white criteria. Personally I have had clients come to me and say that a bank has stated that they can not help them due to income structure or an issue on the credit report. Once I had gained more information from the client, I then spoke with the BDM of that particular bank my clients went direct to and been told that they couldn't help them. With the help of my BDM, we managed to get the underwriter to accept the case and the client got to keep the fantastic rate they currently had and also borrow additional money at the same rate due to the lenders criteria for the mortgage my clients held with them.
Also a big factor in using a mortgage broker is making sure you get the money needed to purchase the house of your dreams. Now I am not saying that we can always get you the amount of money needed to purchase the home as this is always based on affordability, but each lender has different ways to look at income and affordability. So your own bank may only want to lend you 'x' amount but the bank or building society down the road or even that lender that only deals with brokers may lend you that little bit extra to secure your dream home.
So remember before going direct perhaps next time consider using a mortgage broker, as our job is to make sure you get the best mortgage deal for your situation and also to give you the best service possible.
website source for the figures used https://bestadvice.co.uk/broker-market-share-will-increase-in-2019-imla/