Mortgage Broker

Mortgage advice from a professional

Mortgage brokers play an important role in ensuring that their clients get the best mortgage deals in the market, especially if those clients have no prior experience in obtaining secured loans. They serve as the middlemen between a borrower, or mortgagor, and a lender (e.g. Nationwide, Halifax) or mortgagee. Once a person who is interested in applying for a mortgage engages the services of a mortgage broker, the latter will immediately get to work by gathering significant data and documents that a bank would usually require its loan applicants to submit. A mortgage advisor helps make the process of getting a loan easier and faster. Further, a reliable one can give valuable mortgage advice on which package will be most favourable to the client based on various significant factors. A broker may provide a number of different offerings, but the final decision still lies on the client who seeks to obtain a loan secured by a mortgage. Th client still needs to do their due diligence using online tools like a mortgage calculator to ensure the home loan will fit into their financial situation.

Mortgage brokerage setting in the UK

In many areas, including the United Kingdom, mortgage brokers are the top sellers of mortgage deals for banks, lenders, and mortgagees. Thus, mortgage brokerage is being regulated in the UK, as well as in most countries, to afford would-be mortgagors protection from brokers who are not properly equipped with the necessary knowledge and skills to provide quality service. Additionally, this practice of regulating brokerage ensures that mortgage advisors are fully aware of the laws and statutes of the particular country where the client intends to secure a mortgage. The regulation of these individuals brings about another protection a client can claim against the broker, wherein a broker will be financially liable if he or she gives any advice that is proven to be defective afterwards.

Extent of mortgage advisor’s responsibility

The work of mortgage brokers starts at the time when the client employs the services one, who in turn agrees to provide the brokerage services. It generally ends at the time the mortgage deal is concluded between the client and the mortgagee institution. The mortgage broker takes care of the specific details during the whole loan process. Moreover, it is the duty of the person to discuss and explain the legal side of the transaction and documentation to the client. Most importantly, they have the duty to assure that the clients have saved as much as they possibly can from the mortgage dealing.

A mortgage may seem complicated for someone who is not familiar with banking and finance, especially since there are many factors to consider including mortgage type (e.g. buy to let, etc.), repayment term, annual percentage rate, and early repayment charges. Hence, to find and employ a reputable mortgage broker will prove to be beneficial in such a case to avoid unnecessary inconvenience and undue stress on the part of the one who wants to obtain a mortgage.  It is important, however, to first check on the background and credentials of the broker before hiring him or her in order to avoid getting the services of a fraudulent or unlicensed individual.