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These have been uncertain times for those looking to get a good mortgage, including current homeowners reaching the end of their fixed rate period who will need to find a new deal.
Sudden jitters in the financial market following the recent mini-budget exacerbated an already precarious fiscal position in the UK. Homeowners suddenly found future repayments potentially rising by hundreds of pounds in just a matter of weeks.
New chancellor Jeremy Hunt has quickly reversed unfunded tax cuts and hopefully calmed the gilt market, at least for the moment. But the simple truth is that mortgage rates are set to rise and won’t come down quickly. According to the BBC:
“Lenders are likely to "play safe", waiting to see how the markets react to the changes, and - critically - what the Bank of England is likely to do with interest rates.”
It’s always important for homeowners looking for a mortgage to get the best deal they can. That goes without saying. In the wake of the mini-budget, many existing deals were taken off the table within a few days of the market turmoil becoming evident. The future seemed uncertain. Lending had become more difficult.
Since the reversal of most of the mini-budget was announced on the 17th October, things are now appearing to calm down - and normality is beginning to be restored - however lenders and homeowners will feel the effects of this for months if not years to come.
That’s why working with a professional mortgage broker can make a difference, particularly at a time such as this. At Love Mortgages, our expert brokers have a detailed understanding of the mortgage market and work with a range of homeowners and buyers to ensure they get the best deal for their needs.
Here are some of the benefits of employing the services of a mortgage broker.
Finding the right mortgage
Whether you’re a homeowner, buy-to-let landlord, first-time buyer or you’ve decided to remortgage, looking at all the options available and assessing each, in turn, is essential.
Before the damage done by the mini-budget, there were more than 4,000 different mortgage products on the market. While this has reduced in recent weeks, there is still a range of different repayment, fixed-rate, variable and tracker mortgages available.
Checking the options out and finding the perfect mortgage product is time-consuming and still doesn’t guarantee that you select the best one for your circumstances. The good news is that a mortgage broker can take a lot of the heavy lifting for you.
According to Money Saving Expert:
“Mortgage brokers scour the market to find you a good mortgage deal. By using one, you swiftly cover a huge slew of lenders, and get added clout with them to ease your acceptance as well as an extra layer of protection if things go wrong.
Considering mortgage products
There are several factors you need to consider when looking for a mortgage. These include eligibility for government schemes as well as which type of mortgage is right for you. Brokers, if they are worth their commission and understand what the lending criteria for various lenders are, should be able to discover the products that are most beneficial to you.
A good broker should have access to a wide range of different mortgage lenders. Some only deal with a small number of products and are tied to certain companies. The broker you want to ideally work with offers whole-of-market access – that means they should be able to look at everything currently available.
Saving time and money
The job of a mortgage broker is to find you an affordable lending agreement that matches your needs, not just now but in the future. That isn’t just down to the interest rate you’ll need to pay but other financial considerations such as fees. With the current turmoil in the market, it’s even more important to have access to this expertise.
- Mortgage brokers in the UK have to be certified by the Financial Conduct Authority and follow their rules and regulations. A good broker service will also help you manage your general financial situation.
- They can also help you with the application process and make sure you provide all the relevant information as well as keep you up to date once that application is submitted.
Finding the Right UK Mortgage Broker
We agree with Money Saving Expert that a good mortgage broker is worth their weight in gold, but how do you find the best?
Most people look for a broker in their local area but that can limit choice. Many brokers like Love Mortgages offer their services to homeowners across the UK and can access a wider range of different products. We are based in Mold, Flintshire and Chester, Cheshire - however secure mortgages for our customers via phone and email across the entire UK, with ease.
The first question you need to ask any potential mortgage broker is whether they can find deals from all available lenders. Again, some have only a limited number of products to draw on and are tied to one or two companies.
Your estate agent may have recommended brokers they are connected to but that doesn’t mean you have to hire their services, though it can seem expedient. This may ultimately limit the range of different mortgage products that are available to you.
At Love Mortgages, we work independently of lenders which means that we can provide bespoke solutions that suit your needs more closely.
A reputable broker will be upfront about the costs and requirements. For example, at Love Mortgages, we try to be as flexible and transparent as possible. Our charges are likely to be around £495 which is payable on completion.
Finally, you should always make sure that your mortgage broker is properly registered. Unfortunately, there are some bad actors in the industry. Your mortgage advisor should always be a member of the FCA and follow its guidelines.
Why Choose Love Mortgages
Based in North Wales and Chester, Love Mortgages is run by Bethan Davies who has nearly 2 decades of experience providing mortgage and financial advice to a wide range of different customers across the UK.
Whether you are a first-time buyer or buy-to-let landlord, need a remortgage or are looking for specialist services, we can help you access thousands of different products. Our bespoke service is focused on finding what matches your needs when purchasing a property and is completely independent.
Want to find out more? Contact our amazing team today.