A Beginner’s Guide to Using a Mortgage Broker

A mortgage broker is able to use the expertise and experience of the industry to source offers that a borrower will benefit from. Thanks to consumer law, the broker must give advice that is relevant to the circumstances of the applicant and may be held financially responsible if their knowledge or advice is subsequently found to be defective or misleading.Learn more by visiting PLAN A Mortgage

Therefore, before making further contact with a lender, a broker must determine the circumstances of the borrower; this could include a credit report supplied by one of the three credit reference agencies (Experian, Equifax and Creditcall) and income verification to support the presumption that the mortgage is affordable. It is also the duty of the broker to complete the application form for the lender, to collect all the documentation needed from the borrower, to clarify all the legalities of the mortgage agreement and to send to the lender all the necessary materials.

In essence, there are two types of mortgage broker: those who are brokers of the ‘whole market’ and those who deal with a smaller, select lender panel. All market brokers, such as The Mortgage Broker Ltd, give applicants the chance to select their mortgage product from any available UK lender they choose. This method is perfect for anyone who do not trust their working knowledge of mortgages, those with unfavorable credit scores and those who simply do not have the time to analyze the mortgage market extensively.

In the option of product they may sell, brokers that use smaller panels of lenders are more limited. In fact, since they can be used to negotiate with a set number of lenders and their related goods, this can also restrict their familiarity with certain forms of mortgage. An experienced broker, however, may have the ability, on behalf of his or her client, to negotiate terms that may have previously seemed unattainable. On behalf of the client, the broker will also be able to start and finish the entire procurement process.