Our Director Aaron Frizzel, shares his thoughts on the value of utilising a mortgage broker…
What are the benefits to a customer of obtaining advice when they need a mortgage? Given my years of experience in this industry, it is difficult to offer anything other than a subjective viewpoint. I do believe however, by focusing on the client, that is the best way to address this question.
Historically, according to popular surveys on this subject, when customers are asked, what are the key benefits of obtaining advice, typically, they reply time, hassle and cost. Buying a house is often regarded as one of life’s most stressful events. If any, or indeed, all three of those reasons were dealt with positively by your chosen mortgage advice firm, utilising the skill set and services of a fully qualified adviser would then appear obvious.
It is possible to arrange a mortgage yourself but given the complexity of many cases, and understanding both the house buying process and lending criteria, would for the uninitiated, be a time consuming ordeal. A trained mortgage adviser has developed years of experience, who, when trying to place even the most straight forward of scenarios, will have the ability to identify the most suitable lender ahead of the average client. Over the years, and taking into account the additional pressures COVID-19 has dealt everyone, sourcing, processing and tracking a mortgage through to offer of funds has definitely become more complex. When dealing with so many other essential tasks when moving home, this would be a significant investment of a buyer’s time, arguably something they have very little of at that moment.
Hassle, in many ways, is directly linked to the issue of time. What many clients are perhaps not aware of, is the vast number of calls, follow ups, bumps in the road and delays that mortgage lending often presents. By allowing a specialist company and dedicated adviser to help, both the adviser and their support teams help remove that hassle. The collaborative relationships advice firms have with lenders and the experience they have in processing many cases simultaneously, can help tackle the challenge of securing the mortgage funds.
Cost is perhaps the most obvious reason a customer might consider using an adviser. The pursuit of the lowest rate being the primary objective. Understandably, there can often be a singular focus on the lowest rate by clients. Not taking into account the impact of the lender’s product fees however, especially with a more modest mortgage balance, can be costly. An adviser would, as a matter of course, always consider the rate but, calculating the financial impact of the fee over the term of the product, often leads an adviser to recommend based on true cost. During a client’s mortgage lifetime, this strategy will save a client money.
Fundamentally, a client’s preferences and needs are the foremost consideration. An adviser is compelled to ensure that the advice they give is specific to their client. Being heavily regulated, a client should be comforted by this and hopefully able to enjoy the experience and excitement of buying their home, without fear that one, two or even all three of the reasons they perhaps chose not to tackle obtaining a mortgage themselves, would jeopardise that experience.