Mortgage Broker vs Bank
When you are looking to purchase property, there can be so many different considerations. One of the most important is how and where you get a mortgage. You may have heard of two main options - going through a mortgage broker or applying directly for a bank mortgage. Here, we take a closer look at mortgage broker vs bank mortgages and find out which is better for you.
What is a mortgage broker?
A mortgage broker works as a middleman between you and the banks you speak to when it comes to issues pertaining to your mortgage. They will be able to put you in touch with many different options so that you can find the best possible choice for you, both financially and when it comes to the terms offered. A mortgage broker is an expert with many connections to suit your specific needs.
How do bank mortgages work?
A bank mortgage may initially seem like the most straightforward option due to it being simply you going to your chosen bank. A bank mortgage, however, requires you to apply for a loan and meet with your loan officer. They will not provide options with other banks, and will only discuss your options with them. This can somewhat limit your scope.
What are the downsides of a bank mortgage?
As well as having limited options if you apply for a bank mortgage, you may also end up spending more money in the long run. This is because you have not been able to explore a variety of choices and repayment plans from multiple providers. While going through a mortgage broker will have an initial outgoing that you will need to pay, you will find the best value mortgage for you in the end - and this could result in savings of thousands of pounds over the course of your repayment term.
How much does a mortgage broker cost?
When it comes to a bank mortgage versus a mortgage broker, you should opt for a mortgage broker due to their scope of knowledge and the amount of money that they can save you over the full term of your mortgage. You will be certain of achieving a mortgage that truly works for you through a network of contacts, and can advise you on closing costs, whether you are eligible for special mortgages, and other considerations. Most mortgage brokers charge a fixed fee or between 0.3 to 1 per cent of the loan amount.
If you would like more financial advice when purchasing property or with any other financial concerns you may have, get in touch with Integritas Financial Planners to find out more.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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