As mortgage brokers, we are often asked; “Why should I use a mortgage broker?” or “Can’t I arrange my mortgage myself?”
When looking for a mortgage, you can:
- Do it yourself and apply directly to a mortgage lender;
- Instruct the services of a mortgage broker like The Mortgage Pride.
Simply put, yes, you can arrange your own mortgage if you are confident to do so. However, that doesn’t mean it is the right option for you to choose and here’s why.
What Does a Mortgage Application Involve if I do it Myself?
If you choose to arrange your mortgage yourself, you would either apply online or contact the mortgage lender (often a high street bank or building society you are familiar with) to speak to one of their mortgage advisers. This means there is a heavy reliance on you to provide accurate information, as you may not provide any documents such as payslips or bank statements until after a full mortgage application has been submitted further into the mortgage process.
Should you want to speak to one of their mortgage advisers, there is often a wait in order to do so. Recently, we had to apply for our own mortgage directly from a high street bank that doesn’t work with mortgage brokers. Frustratingly, we had to wait over 2 weeks for an initial telephone appointment and then a further 2 weeks to submit our full mortgage application. That was 4 weeks of waiting just to get the mortgage application underway. As a result, our home improvement projects were considerably delayed.
If you decide to do it yourself online instead of speaking to one of their advisers, then the lender is relying on the information you are inputting on the application form to be correct. Not only that, but they are also relying on your understanding of whether or not you meet their full lending criteria. The system uses the information you have input, to make an initial decision. At this stage, the direct lender hasn’t confirmed that the information is accurate or that it has been input correctly.
What is the Worst that can Happen?
As a whole of market mortgage broker, we are often contacted by homebuyers who have had an offer accepted on their dream home but had the mortgage application they submitted directly to the direct lender declined. They become stressed and anxious because they thought they had secured their mortgage to purchase the property. They have had an offer accepted and become worried they are not going to be able to continue with the purchase. When we are contacted by clients in this situation, they often do not fully understand why the bank has said no.
Some examples of why the mortgage lender may decline your mortgage application include:
- Adverse credit such as missed payments, defaults, CCJs, and debt management plans;
- Misunderstanding how your income will be treated/assessed – not all mortgage lenders will accept every type of income (e.g bonus, overtime, commission, shift work, CIS workers, agency work, contract workers, zero–hour contract workers);
- Low credit score or no credit history;
- Purchasing a property deemed to be non-standard construction;
- Self-employment income
Also, decisions in principles and mortgage applications often involve credit searches. This means that too many may negatively impact your credit score, making it more difficult to obtain a mortgage.
Benefits of Using a Whole of Market Mortgage Broker Instead
The biggest difference between applying directly to a mortgage lender vs using the services of a mortgage broker is that the direct lender has only one option – what they offer. This means if you do not meet their lending criteria or pass their affordability checks then they don’t have an alternative option to offer you.
Mortgage brokers have more than one option as they can access more than one mortgage lender. Because mortgage brokers have access to a wider number of mortgage lenders, this often means they have more than one option for you.
At this point, it is important to mention that there are mortgage lenders who will only work with customers directly. A good example is the scenario which we gave you earlier when we were unable to submit our own mortgage application even though we are mortgage brokers because the mortgage lender only works with customers directly via their own internal mortgage advisers.
Why Use a Whole of Market Mortgage Broker such as The Mortgage Pride?
Location doesn’t matter
Our secure client portal allows you to safely and easily upload your documents to us ahead of your appointment so there is no need to print any bank statements or payslips. And because we also offer video appointments, we can help you wherever you are located in the UK.
Flexibility
Here at The Mortgage Pride, we understand that we no longer live in a 9 – 5, Monday to Friday society. Many people we work with are shift workers or have children so we offer evening and weekend appointments as well as daytime appointments. Many of our clients prefer video appointments as this removes any stress associated with travelling to and from appointments or trying to arrange childcare.
We are with you every step of the way
From the very first phone call to collecting the keys to your new home and beyond, we are always by your side. We are able to guide you through the full home buying and mortgage process including supporting you with putting offers into estate agents, arranging solicitors for your home purchase and obtaining updates throughout the process.
Not just mortgages
We also offer advice on and arrange insurance policies to protect you and your family in the event the unexpected happens. These include life insurance, critical illness cover, income protection, family income benefit and home insurance. We can even put you in contact with our sister company, Pride Estate Planning, for your estate planning needs. Let our Pride look after yours!
Some of the other benefits of using a mortgage broker such as The Mortgage Pride include:
- They are experts in what they do. Mortgage brokers submit a variety of mortgage applications each week so are familiar with each mortgage lender’s lending criteria and affordability assessments. This means you can be confident you have been matched with the most suitable mortgage lender for your personal circumstances.
- They can potentially save you money so you don’t pay more than you need to. By using a whole of market mortgage broker such as The Mortgage Pride, you can be confident you will get the most cost-effective mortgage deal available based on your circumstances.
What are My Next Steps?
If you are interested in finding out more about how a whole of market mortgage broker like we at The Mortgage Pride can help you, contact us today!
*Your home may be repossessed if you do not keep up repayments on your mortgage. As with all insurance policies, conditions and exclusions will apply. The Mortgage Pride cannot advise you on your estate planning needs but can introduce you to their sister firm, Pride Estate Planning with your permission.