Why First Time Buyers Should Use A Mortgage Broker

First Time Buyers

The process of finding a mortgage suitable for you at the best price may seem daunting, and of course it can be difficult if you are a first time buyer and have little knowledge of where to look and what to look for. There are many things to consider and look into when you decide to buy your first house so the less work you have to do the better in order to keep your stress levels low and the moving process positive and exciting just like it should be.

Going for a direct deal may seem like the cheaper and easy option, however this will almost certainly take you a lot of time doing research and looking into the different mortgages out there on the market. If you are a first time buyer consider using a mortgage broker to help you out along the way.

It may seem unnecessary due to further expenses, however in the long run you are probably getting a far better deal on your mortgage. Here are three reasons why first time buyers should use a mortgage broker, something which we put together in conjunction with Search Mortgage Solutions in Liverpool:

The biggest benefit of using a mortgage broker is that they know the market inside out and know who to go for to get you the best deal for your needs. Not only this, but with mortgage criteria tightening recently, a broker will also know where you are likely to be accepted for a mortgage with your personal situations.

With mortgage lenders wanting to keep their mortgages affordable even in the event of a rate rise, there is far more criteria which needs to be met during the application.

This means the process of application can take a lot longer, and having a mortgage broker to advice you on where you are likely to be accepted can certainly speed things up keeping delays minimal. As mortgage brokers build relationships with companies, they are also able to chase things up which you wouldn’t be able to do yourself.

A mortgage broker will be able to offer you a variety of different mortgage deals which you wouldn’t be able to find yourself. Again, as they build relationships with certain companies they are able to find far better mortgage deals than you’d be able to find yourself through a direct deal.

Mortgage lenders work alongside mortgage brokers to encourage customers to lend through their company, so to keep the brokers clients coming back they are willing to offer much better deals. Although you will be paying for the help of the mortgage broker, finding the best mortgage for you which is affordable to pay off will make it worthwhile in the long run.

The last reason a first time buyer should use a mortgage broker is because you also receive help and advice on other things such as life insurance, payment protection and buildings and contents insurance. As i mentioned earlier, there are a lot of things to consider in the process of buying a house so the more help you can receive the better.

The broker will look at different insurance deals based on your new mortgage and it will be another weight off your shoulders. This ensures you will be protected in the event of illness, redundancy and death. So if you are finding it difficult to cope with the stress of first time buying and you find it is taking up too much of your time, hire a mortgage broker and they will do the hard work for you.

Three Reasons Why First Time Buyers Should Use A Mortgage Broker

First Time Buyers

It’s not to look at new builds (even though you can get a great house alongside needing to borrow a lesser amount through the Help To Buy scheme) or even to wait a little while and save up for a bigger deposit (even though again, it helps) but to use a mortgage broker!

The first reaction to many on this is that surely a mortgage broker will simply eat into the hard saved deposit and reduce the amount available for a deposit? Whilst that’s consensus by many, it’s far from the truth, however and to bring you three reasons why first time buyers should use the services of a mortgage broker, Stourbridge mortgage broker, Andrew Craddock.

  1. It Shouldnt Cost You A Penny

In the majority of instances, using the services of a mortgage broker won’t cost you a penny, at all! As such, it’s not eating into your deposit fund and you won’t need to try and find extra in order to pay the broker fees. In recent years, we’ve seen a surge in ‘no broker fee’ brokers out there and it’s making their services far more accessible to the majority of first time buyers who are on a tight budget and need every pound they can to go into putting a deposit down. Of course, brokers aren’t working for free and it’s important to understand that they’re receiving a commission from the lender. As a borrower, however, this should’t make a difference and the bottom line is that it often won’t cost you anything at all.

  1. YoullGet Invaluable Advice

Perhaps the most beneficial reason to use a mortgage broker is because of the invaluable advice you’ll receive. Do you really know the difference between a fixed-rate and a variable mortgage? No, we didn’t think so! As such, it pays dividends to speak with a professional and receive their expert advice. They’ll not only find you a mortgage but find the best one – something which you can’t put a price on. Choosing the wrong mortgage can, in the lung run, be a costly mistake so getting it right first time if at all possible is strongly advised! Using a mortgage broker will ensure you do just that and don’t need to worry about learning what different types of mortgage actually are.

  1. You May Get A Better Rate Of Interest

In some instances, brokers will have access to exclusive deals from lenders meaning they’re able to pass these on to you. It’s often the case that you’ll be able to get a slightly better rate going through a broker than direct to a lender and when we’re talking a mortgage of £100,000 or more in most cases, this can mean huge savings both on your monthly repayments and the overall cost over the full term.

If you’re in the process of looking to buy your first home, take our advice! Find a local mortgage broker, book an appointment and have a chat with them on what they can do for you. You’ve nothing to loose but so much to gain! If you’re considering buying your first home, get above tip for you which should sit above all others.