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Mortgage broker or direct deal?

Wed 08 Nov 2023

With so many mortgage deals available, how can you ensure you find the right one for you?

You could decide to go direct, searching the market yourself and approaching a lender directly for a specific mortgage deal. Lenders may provide advice, but only on the products they offer. Going direct could save you money as you’re not charged fees that some brokers charge for mortgage advice, but only if you know what mortgage is best for you.  You could arrange a new mortgage with your existing bank or building society, but you could be limited solely to their own mortgage products, significantly restricting the deals available to you.

What is a mortgage broker?
A mortgage broker is a person or company that arranges a mortgage between you (the borrower) and a mortgage lender.

They will:

  • Help you assess your financial situation
  • Search the market to find deals that match your criteria
  • Recommend the most suitable mortgage for your needs
What are the benefits of using a broker?
  • Convenience - if you’re not sure what you’re looking for and aren’t clear on the mortgage markets, or just don’t have the time to search for deals and speak to lenders, then a broker can be very useful. They could save you a considerable amount of time.
  • Access – mortgage brokers will usually have access to a wide range of lenders, with deals that aren’t always available if you go direct. This means they have a wider choice of options to recommend from.
  • Expertise – if you’re not familiar with the different types of mortgages available, knowing where to start can be overwhelming. For such an important financial decision, having an expert who can provide impartial advice and explain things, will make the whole process clearer.
What are the disadvantages?
  • Cost - mortgage brokers receive commission from the lender, some charge a fee for their services. This can be charged an hourly or 'flat fee' basis and can either be charged up front or on completion of your mortgage.
  • Limitations – not all brokers have independent access to the mortgage market, some only use certain lenders. Not all mortgage deals offered by banks and building societies are available through brokers.
  • Quality - getting a mortgage is one of the biggest financial decisions you’ll make, so it’s important to make sure you choose a broker carefully and get recommendations where possible.
What types of mortgage brokers are there?
  • Brokers who only offer mortgage from a single lender
  • Brokers who offer mortgages from a limited number of lenders
  • Brokers who offer a comprehensive range of mortgages from across the market
Fee-Free Mortgage Advice Service available to the Police Family

Here at Police Mutual, we introduce customers to a Fee-Free Mortgage Advice Service, provided by Tenet Mortgage Solutions Limited. Like most brokers, they get paid by the lender when your mortgage completes. The good news is that unlike others, they don’t charge you a fee on top of this for the advice. Even better they provide:

  • Independent access to the mortgage market
  • Personal review with one of their advisors
  • Hassle-free service
Important things you should know.

PMGI Limited, trading as Police Mutual, has chosen Tenet Mortgage Solutions Limited, part of Tenet, to provide customers with a Mortgage Advice Service. Tenet Mortgage Solutions Limited will provide you with independent mortgage advice and will make a recommendation based on your circumstances and requirements. You will not receive advice or any recommendation from Police Mutual. If you take out a mortgage recommended by Tenet Mortgage Solutions Limited, PMGI Limited will receive a fee for this introduction. This fee is 24.8% of the money that Tenet Mortgage Solutions Limited receives as commission from the mortgage lender.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.

Call Tenet Mortgage Solutions Limited on 01543 221 214 or enquire online Lines open Mon-Fri 9am-5pm.

PMGI Limited, trading as Police Mutual is authorised and regulated by the Financial Conduct Authority. Financial Services Register No. 114942. Registered in England & Wales No.1073408. Registered office: Brookfield Court, Selby Road, Leeds, LS25 1NB. For your security, all telephone calls are recorded and may be monitored.

Type of article: Articles
Category: Owning a house

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