When Should I Contact a Mortgage Broker?

For many, buying a home is the biggest financial decision that you will ever make. As such, it isn’t just about finding the right property – it is also about getting the right mortgage.

Unfortunately, navigating all the jargon and complexities of the mortgage world can feel like quite a mountain to climb. Enter a trusted mortgage Broker…

Working with a trusted mortgage broker is like recruiting a guide to show you all the do’s and don’ts in your journey to securing both your mortgage and your dream home.

But when is the best time to speak to a mortgage broker?

In this article, we break down all the key ways a mortgage broker can help you and the when and how reaching out to a mortgage broker can make all the difference. Let’s begin.

Short on time? Watch our quick video guide below:

What Does a Mortgage Broker Do?

Whether you’re a first-time buyer, looking to remortgage, or are dealing with a tricky financial situation, a broker can act as your personal guide to finding the best mortgage provider that understands your financial situation.

Simply, a trusted mortgage broker will be an expert in their field, knowing the mortgage market inside out. They’re able to answer all of your mortgage questions, from ‘How much can I borrow?’ to ‘What’s the best rate for my situation?’

In addition, a mortgage broker will be up-to-date on all the latest mortgage products. This means they will have key insights into unique and specialist mortgage products on the market that might perfectly suit your financial situation.

The most important distinction to understand is that a mortgage broker won’t just match you with any lenders – they will assess your financial situation, explain complex terms, and help provide you with all of your options while providing expert advice every step of the way.

For example, at Boon Brokers, our first step is to provide our clients with a free consultation in which they are assigned a dedicated mortgage broker who will take the time to listen and understand your needs. This way, all our mortgage advice and product searches can be tailored to your exact needs.

How Much Are Mortgage Broker Fees?

With mortgage brokers offering a key service in helping you secure a mortgage, your next question is probably: “How much is a mortgage broker fee going to cost me?”

The good news – there are a variety of options with some brokers not charging you a penny.

Some brokers – like Boon Brokers – are paid directly by lenders, making them a no fee mortgage broker. Other brokers, however, may choose to charge a flat fee or a percentage of the loan.

It is always important to ask your mortgage broker upfront how much they charge for their service.

Below we have listed the main 3 types of Broker fees for your convenience:

Types of Mortgage Broker Fees:

• No fee brokers: These brokers are paid by the lender, so you won’t need to pay them directly.
• Flat fee brokers: Some brokers charge a one-time fee for their services.
• Percentage-based fees: A broker may charge a percentage of the mortgage amount, usually ranging from 0.3% to 1%.

Crucially, a trusted and established mortgage broker will always be transparent about their fees upfront – So, don’t be afraid to ask!

What Is the Difference Between a Whole-of-Market and Restricted Panel Broker?

If you’re on the search for a mortgage broker then the phrases “whole-of-market” and “restricted panel” may already be on your radar.

The difference between these two types of brokers is vitally important to best understand the service that you will receive.

Key Differences:

• Whole-of-market brokers: As the name would suggest, a whole-of-market broker will have access to a broad spectrum of lenders, including high street banks, building societies, and specialist lenders. This access to the entire market will naturally give you many more mortgage options – especially beneficially if you have unique financial circumstances.
• Restricted panel brokers: A restricted panel broker will only work with a select number of lenders. While it is true that a restricted panel broker may still find you a good mortgage deal, the options will be much more limited.

So, why does this matter?

Put simply: A whole-of-market broker will be able to present you with more options, broadening their search to include deals from specialist and high-street lenders alike. Naturally, this will increase your chances at finding the perfect mortgage product for your circumstances.

Another key tip in deciding on your broker or lender is to always check the most up-to-date reviews of mortgage lenders to see what kind of experience other clients have had. Customer reviews will always give you insight into what to expect and whether a particular broker or lender is a good fit for your needs.

Do I Need a Mortgage Broker?

The answer to “Do I need to use a mortgage broker?” is plainly: it’s entirely your choice.

The most important factor is securing the best mortgage deal that matches your financial standing.

A lot of lenders today will not work directly with the public. As such, to access the most competitive mortgage products will require working with a trusted mortgage broker.

In a nutshell: working with a trusted and established mortgage broker can help you save both time and money.

Specifically for first-time buyers who are feeling overwhelmed by the mortgage market or just don’t know where to start, a broker can simplify everything by doing all the legwork for you.

What Can a Mortgage Broker Help With?

As we’ve highlighted at the beginning of this article, one of the main benefits of working with a broker is that they can offer tailored mortgage advice.

This means, whether you’re self-employed, have a less-than-perfect credit score, or simply want to make sure you’re getting the best rates, a trusted mortgage broker will be able to find you a mortgage product that fits your requirements.

For a detailed insight into exactly what a mortgage broker will do for you, let’s take a look at the main ways a mortgage broker can help you:

Initial Consultation

One of the key steps to securing a mortgage that is suited to your financial circumstances and requirements is the initial consultation.

During your initial mortgage advisor meeting, your broker will sit down with you (either virtually or in person) and talk with you about your needs and expectations. At this time, it is also common to discuss your current financial situation, goals, and any questions or concerns you may have.

Primarily, an initial consultation is a chance for you to discuss your needs and for the broker to explain how they will be able to help you move forward. A broker will also want to take a closer look at your financial picture – including income, savings, and any outstanding debts – in order to provide you a more accurate assessment of your mortgage options.

During this meeting – and through the entire process  – you’ll have the opportunity to ask questions about your application, available mortgage products, and anything else that’s on your mind.

An initial consultation is the first step towards understanding your broker, their services, and feeling more confident in your future mortgage application.

Mortgage Application

We understand (and agree) – the timeline and process of a mortgage application can feel like a mountain of paperwork, and one big headache.

Thankfully, a mortgage broker can streamline this entire process for you, optimising your chances of securing a mortgage.

As part of the service, a broker will check your documents, help you complete forms accurately, and follow up with lenders to keep things moving.

Additionally, a trusted mortgage broker is likely to have a wealth of experience dealing with a variety of different lenders. As such, they may be able to tailor your application to the criteria of your chosen lender to greatly improve the success of your application.

In truth, having a broker help complete your mortgage application can  ensure that all the paperwork is filled out correctly and everything is in order. This will prevent any delays or complications down the road. They’ll also act as a dedicated point of contact between you and the lender, so you don’t have to handle all the communication yourself.

Completing your mortgage application is all about making sure you don’t miss any steps.

Bad Credit or Unique Financial Circumstances

It’s a common misconception that bad credit will result in your mortgage application failing.

In truth: having a less than perfect credit history doesn’t mean you’re out of luck – it just means you might need some additional help.

Working with a trusted whole-of-market broker can help point you towards lenders who specialise in mortgages with bad credit and even advise on the best ways you can improve your credit profile before applying.

Whether your credit issues stem from missed payments, defaults, or a short credit history, a broker can help identify lenders who are more flexible in their requirements.

The same goes for applicants who have unique or difficult financial circumstances. Often, popular high-street lenders will decline mortgage applications from those with unusual financial income structures or circumstances. But, working with a whole-of-market broker can open the door to specialist lenders who will have more flexible lending criteria and products that match your needs.

Other Services Provided By a Mortgage Broker

Beyond the main benefits of working with a mortgage broker, they may also provide additional resources and products that could bolster your knowledge or pair with your mortgage deal.

Here’s a list of what else a mortgage broker can help you with:

Tailored Mortgage Advice on Deposits and Budgeting

Saving for a mortgage deposit can be one of the hardest and most daunting tasks – but it can help you secure the best mortgage rates.

As such, a trusted broker can help provide you with up-to-date information on how much of a deposit you will need for different types of mortgages, any available products that reduce the needed deposit amount, and help you decide on whether it is ultimately better to save or act now.

Securing a Mortgage in Principle

When you’re searching for your dream house, a mortgage in principle can be a powerful bargaining tool.

A mortgage broker can help you apply and secure a mortgage in principle from your chosen lender quickly. This will provide you with a realistic idea of how much you will be likely to borrow and provide you with clear documentation to show the seller you’re serious about purchasing.

Life Insurance

As we mentioned in the introduction – taking out a mortgage is a huge financial responsibility. It goes without saying then that protecting that investment with mortgage insurance is a smart move.

Some mortgage brokers will also offer you general and life insurance, connecting you with policy lenders that ensure your finances are protected and your loved ones aren’t left struggling with repayments if anything unfortunate should happen.

Home Insurance

The purchase of your home is likely the biggest purchase you’ll ever make, making home insurance is a must.

Similar to life insurance, some mortgage brokers will be able to recommend and organise comprehensive coverage options that include building and contents insurance, so you’re protected against potential risks.

How Do I Choose the Right Mortgage Broker?

Choosing the right mortgage broker can make all the difference to your mortgage experience –  and your pocket!

But choosing the right mortgage broker for you is crucial.

To help you find a trusted and established mortgage broker, there are 3 key questions you need to keep in mind, including:

• Are they a whole-of-market broker?
• Are they FCA-regulated?
• What are the most recent reviews like?

It’s important to break down the barricade of fees and their lender network early. Be upfront and clear with your questions and make sure that you understand if there are any fees you will be charged, and which lenders will be open to you.

Here at Boon Brokers, we welcome all and any questions you have. It is important for you to know exactly why we operate a fee-free service and how our dedicated brokers can help you secure the best mortgage deal for you.

When Should I Contact a Mortgage Broker?

So, the concluding question: “when should you contact a mortgage broker?”

The reality is the ideal time is as soon as you start considering a property purchase or remortgage.

Having an initial consultation and getting early advice can really help you avoid costly mistakes further down the line, like missing out on favourable rates or underestimating how much deposit you need.

In addition, the earlier you make contact, the earlier you can be allocated a dedicated adviser who can provide expert advice for your future steps. This could include information about saving up for a deposit and the best times to apply in the future.

Contact a Mortgage Broker Today

Trying to find your way through the maze of mortgages can be a labyrinth of a task. Thankfully, Boon Brokers is here to help you.

As a trusted and whole-of-market, fee-free mortgage broker, we offer impartial guidance tailored to your individual circumstances.

Regulated by the FCA, we help you explore the full range of mortgage products available across the entire market, identify all the options that align with your financial goals.

Ready to take the first step? Contact Boon Brokers today for a free initial consultation.