The difference between a Mortgage Broker & A Lender

Homebuyers and owners in the UK have two main routes to explore when trying to obtain a mortgage, they can go direct to a bank or building society or they can use a mortgage broker!

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If you go direct to a bank or building society they can only show you their products and if you do not fit their criteria you are stuck looking for another bank/society and going through the same process again and again, until you find a lender that is suitable for you. Rates also may reduce by the time that you are ready to complete so you may be stuck with a higher product, not realising that there is better out there either with the same lender or another.

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Mortgage brokers are there to find the right deal for you and your circumstances and apply to the lender for you. They do all the hard work and all you are required to do is provide the documents that the lenders requests such as payslip's and bank statements. They also keep an eye on the rates for you and will look at all avenues and lenders rather than just one. They will keep an eye on what the rates are doing for you and can switch you to a better deal if one comes available.

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It is also important to know that not all mortgage brokers are 'whole of market', meaning that some are only linked to certain banks/society's so again these brokers can only approach a small group rather than being able to approach and see them all... Like us!