What is a mortgage broker?

Posted by Belle on August 20th, 2019

What is a mortgage broker?

A mortgage broker is the middleman who arranges a mortgage between the borrower and the lender. They can help the borrower to choose the most suitable type of mortgage for their personal needs, for example some people may be applying for their first ever mortgage whilst other borrowers may already have one, or are even remortgaging.

It is the mortgage broker’s job to assess the borrower and their finances to find out what they can afford and what they will be allowed. Another of their key roles is to explore the market to find an appropriate mortgage deal, suited to the borrower. Furthermore, they handle the majority of the legal and financial paperwork required, reducing the work from both the borrower and lender.

One of the main advantages of using a mortgage broker is that with their expertise and contacts they have a higher chance of being able to find you the best deal rather than searching by yourself. Their knowledge of the sector can also help you to understand why a particular deal is suited to you as they know the quick paced nature of the market.

However, with using a mortgage broker for their help and advice there are fees, and these can vary across the market. Brokers fees are calculated in various ways such as a fixed price for the job, an hourly rate or as a percentage cost of your mortgage. Alternatively some are being paid with commission by the lender, so it may seem that you are not directly paying the broker.

If you are looking to find a mortgage broker you can simply turn to the internet, however you will find such a great number available, you may not know where to start. Instead see if you can collect any recommendations from people in the local area. When choosing a mortgage broker, it is always important to consider their qualifications and experience of the job as this could result in you not obtaining a very good deal, or even cost you more money.