You decide to use the services of a Mortgage Broker and use the internet to try and find one.
There is an old saying, “if you don’t know what you are looking for, you won’t find it”.
So what exactly does a “good” mortgage broker look like?
There are basically 4 things that you should be looking out for to help you find the best from the not so good:
Is the firm that you are considering using a dedicated mortgage broker or another type of intermediary like an IFA firm that does not have mortgage advice as “core business”. What would the difference be?
Well to put it in context you could employ the services of a general builder to fix some damp problems in the basement of your house, or you could use the services of a professional damp proofing company that gives you an insurance backed 25 year guarantee. It’s fairly obvious where the best work would come from, and it’s guaranteed.
Similarly using a dedicated mortgage broker gives you knowledge, experience and comes with guarantees in terms of recourse to the Financial Ombudsman.
An Independent Mortgage Broker that isn’t a one man operation will usually employ support staff that are well versed in processing mortgage products, and are often readily available. These unsung heroes are the power behind all applications. If you are unsure if your chosen broker has such staff……ask.
Is the firm that you are proposing to deal with an Independent Mortgage Broker?
Care is needed with this one as some use a “panel of lenders” etc, and when questioned will try and flannel saying things like “as we use them regularly we know their criteria”. Mortgage broker’s that use a panel of lenders or are restricted to a panel because it benefits them and not necessarily you.
They are getting something back, not always money, but moneys worth. Same difference as far as you the client is concerned. Ask yourself the question, is this mortgage broker going to represent my interests in the marketplace….or their own.
How long has the mortgage brokerage been in existence?
Who are the brokers that may be dealing with your mortgage case and what direct experience do they have? A good firm will have this information on their website, often in the form of a bio detailing their advisers backgrounds and experience. Although everyone had to learn somewhere, would you really want a trainee dealing with your case?