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Looking for a mortgage? Avoid going directly to a bank…

Shopping around for a mortgage can be a daunting task especially for those who’ve never done it before. How do you know if you’re getting the best rate, or, if the terms and conditions of the mortgage are best suited to your specific circumstances? If you go directly to a bank you are at risk of having their latest offering pushed on you, with little consideration for your individual needs.

That’s why getting the right mortgage advice, from a reputable broker, can be invaluable when you are securing finance for a property. The broker will work on your behalf to source the very best deal, offering competitive rates, delivered with competency and bespoke financial planning advice.

Read on to find out why using a skilled mortgage broker could be a much better option for you than approaching a bank.

1.       You are protected

When you receive mortgage advice, your mortgage broker has a duty of care to you. They must recommend a suitable mortgage and be able to justify why that particular mortgage is right for you.

If for whatever reason their advice is not up to scratch you can submit a complaint and be compensated.

By contrast, if you go directly to a bank and don’t take advice, but then end up with a mortgage that is unsuitable (or later becomes unaffordable), you will not have any recourse.

2.       Access to specialist skill and experience

There is an awful lot involved when it comes to choosing the right mortgage. It takes a great deal of time, knowledge of the market and access to information. It’s not merely a case of searching for the cheapest fixed or tracker rate mortgage you can find.

Mortgage brokers have to be qualified in order to provide you with mortgage advice. By contrast, a lot of call centre and branch staff at banks are not qualified to advise you. That being said, if you make a direct enquiry at your local bank branch you should be able to get an appointment with one of the bank’s mortgage advisers (however it is important to note that they will only be able to provide advice on their own in-house products – not those offered in the broader market).

3.       The mortgage broker is on your side

When you engage with an independent mortgage broker they are charged with sourcing the very best mortgage for you. By contrast, a bank employed broker is operating on behalf of the lender.

4.       Tap into industry knowledge

The financial landscape has changed dramatically over the last few years and a mortgage criterion has tightened massively. Your independent mortgage broker deals with lenders on a day-to-day basis. They will know which lenders to approach and who can process your application without unnecessary delays.

Your broker will also be abreast of the background criteria required by the lender and will use this when advising you on, and helping you to process, your application.

In instances where the mortgage broker uses a particular lender quite often, they will have a strong relationship, enabling them to exert influence and chase things in a way you just couldn’t do by yourself.

5.       You get way more than just a mortgage

A mortgage broker won’t just advise you on your mortgage. They will also look at any other protection policies you have in place, such as related life insurance, payment protection, even buildings and contents insurance.

When you secure your new mortgage your broker should also provide unbiased advice on suitable insurance policies to ensure you are fully protected in the event of:

>   Death
>   Critical illness (such as cancer, heart attack or stroke)
>   Redundancy

It is rare that you will also receive such comprehensive and specialist protection advice from a bank.

6.       The value of advice

Mortgages can be a lot more complex than they first appear. Knowing what rate, lender, features, terms, and insurance are all time-consuming and complicated matters.

A mortgage broker will take your entire circumstances into account before recommending a suitable solution. It is this thorough, professional look at your finances that makes their advice well worth paying for.

To find out more about the mortgage brokerage service or range of personal insurance services offered by PK Partnership, please get in touch.

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