A common question I get nearly every day is whether clients must use the Estate Agents mortgage broker or Builders Mortgage Broker.
The short answer is ‘no’.
Why do Estate Agents or Builders want us to use their mortgage brokers?
For a couple of reasons, Estate Agents and Builders are often keen to get you to use their in-house mortgage broker.
They may have targets to achieve and will receive an income if the mortgage is kept with them.
Also, the Estate Agent has a duty of care to their vendors to ensure that anyone proposing an offer is eligible to buy that property, this may just be the case of proving you have a Decision In Principle for a mortgage and that you have proof of deposit. A Builder will want to ensure you can afford to purchase the property you want.
At Clever Mortgages, after an initial conversation, we can supply you with a Decision in Principle letter that will provide the details the Estate Agent or Builders needs. We can also check your deposit source and confirm the acceptance with a lender. This will save you time, if say you are registered with multiple Estate Agents, of which each wants you to have an appointment with their Mortgage Broker.
That said, even if you do speak to the Estate Agents or Builders broker there is no obligation to go with them.
What advantage is there to use an independent mortgage broker?
A lot of Estate Agents and Builders don’t look at the whole of the market when it comes to mortgages and you may not get the best deal for your circumstances or be told there aren’t any lenders for you. As bad credit specialists, Clever Mortgages have the knowledge to cover all areas of lending.
As with most things in life it is worth finding someone who can shop about and search the market for that Mortgage which is tailored to your needs. Especially since COVID has affected the lenders processing times, criteria and Loan to Values have become stricter.
A Mortgage Specialist, such as ourselves, with access to 100s of lenders, is able to look at each bank and building societies lending criteria but we also have built good relationships with the underwriting managers so we know where lending criteria can also be flexed.
When should I speak to an independent mortgage broker?
Clients often come to us before they even start looking for a property, this way we can let them know how much they can borrow, if that amount is affordable and also what is the best mortgage deal for your circumstances at that time. In order to assist you with your property search we can issue you with a Decision in Principle this way once you start offering on the properties you will be able to show a copy of the letter to the Estate Agency or Builders.
Once you have secured an offer on the property of your choice, we will ensure that the lender who made the Decision in Principle still meets your needs and there haven’t been any better deals since.
After placing your mortgage our administration team will be on hand to help you all through the journey, we will liaise with your solicitor, lenders, estate agents/builders and yourself to ensure everything goes smoothly until the day you get your keys.
Your journey doesn’t end with us then, we will be in touch prior to the end of any fixed/discounted rate to ensure we keep exploring the market to get you the best deal.
We ensure all our team give you a personal level of service as we rely on word of mouth for recommendations and are pleased to say we have been rated very highly by our clients on Trust Pilot