We get a lot of feedback from our customers about our newsletter, and we appreciate receiving positive comments and constructive feedback; it’s makes us better.
One observation a week or so ago really stood out. Why should a consumer use a mortgage broker – like us – over going direct to a lender? Is there really any point?
Yes, it’s an obvious question and one we’d probably overlooked. So, without this piece sounding like a bulging brochure full of superlatives that wouldn’t be out of place in a German manufacturer’s showroom, we’ll make this as objective as possible.
With the accent on our digital lifestyle, why bother with the likes of us? Lenders like nothing more than a straightforward mortgage application. But, the reality is that nothing is straightforward and that’s where lenders can tend to roll their eyes and wish they were somewhere else. Going through the “nitty gritty” with a few deviations along the way does not turn a lender on.
Brokers like this. We’ll scour the market for the product that suits you – mortgage/remortgage/second charge – and we’ll give options. In the last 12 months alone, the number of self-employed people increased by 148,000 to 4.80 million (15.1% of all people in work) in the UK. We are a nation of entrepreneurs; we see an opportunity and go for it. For example, a large supermarket is making redundancies. What happens next? The soon-to-be-redundant are flexible and motivated. Rather than sign-on, they are more likely to get straight into work or become self-employed. This is great for them, but for mortgage lending. Oooh, complications!
Hello, brokers! In this situation, we are particularly useful if you are in an unusual position. Like you have a little debt or you have a portfolio of properties or your personal position has changed.
The best thing is that anyone can benefit from using the expertise of a mortgage broker. Really, I mean it!
- We know the market well and are up to speed with the latest deals
- We’ve built relationships with lenders so we know who are comfortable with unusual circumstances
- Our advice is impartial, direct and with your best interests at its very core
- We get “broker only” offers from lenders, but we’ll only apply these if they fit your needs, not the other way around. Often these deals will be better than going direct to the lender; they don’t tell you that on an online comparison site!
Where there are positives, there are considerations too. This wouldn’t be an objective piece if we didn’t set out both sides of the coin.
Some brokers are tied to specific mortgage lenders. They won’t tell you this, but they are. There’s a security to some that working with one lender is preferable. On the other hand, Hayes Finance are not tied to anyone lender. We’ve been asked, but we like the independence. Over many years, we’ve cultivated very distinct relationships with many of the major lenders. That means we work with clients on a one-by-one basis, ensuring all needs and requirements are listened to, and then we approach suitable lenders. You’ll then get a range of options rather than a fait-a-compli.
At Hayes Finance, we are “whole market brokers” and that means what we offer is truly representative of what’s available. You’ll see – in real time – the full spectrum of what the lenders have to offer.
So, what should I do?
The benefits of staying with who you have a mortgage with are they know you and your financial commitments; they provide a mortgage to you. With a broker, we’ll ask you of your earnings and current and ongoing financial commitments. The likelihood is you can borrow more. However, this will be confirmed during our free consultation. Before that, any broker should provide an “Initial Disclosure Document”; we provide this as a matter of course. This outlines our service and what we’ll do for you.
Ever since the financial crash of 2007/08; mortgages, the ability to lend and to whom is so much more tightly regulated. It’s a check and balances thing – for everyone concerned. We applaud this. With more regulation, it has weeded out the unscrupulous and the unsavoury. We are here to support and serve you.
One huge piece of advice I would say is get the amount you want to borrow confirmed before you find your dream home. Doing it in reverse order can be heartbreaking, and no one wants to end a tale on a sour note.
For a free consultation for you, your family or friends, do get in touch. We’ll give you the very best, impartial advice that leaves you certain of what you can borrow, and from who.
T: 020 3126 4898