When looking for a mortgage you may be faced with a decision as to whether you should use the services of a mortgage broker instead of applying for a loan directly with a lender.
One of the main reasons why you should use a mortgage broker is that mortgage brokers have access to a much wider range of products than an individual lender does.
The mortgage brokers who work within bank branches are tied to the products that the bank offers. This means that they are not able to offer advice on the entire mortgage market.
Instead those mortgage brokers are usually limited to about a dozen products, usually with varying interest rates, loan-to-value ratios, and fees. Apart from the variances in these factors, the products are mostly the same.
They will usually require the applicant to pass the same set of criteria, such as credit worthiness, in order to assess whether they are eligible for a loan. This normally means that applicants with adverse credit will not be approved and the lender will not assist them in locating a more suitable product.
Independent mortgage brokers, on the other hand, may have access to thousands of products from dozens of different lenders.
This will certainly increase the odds of you finding a product to suit your individual circumstances, particularly if you are self-employed or do not have a perfect credit history.
An independent mortgage broker will have access to software that will be able to scour the mortgage market to find the best product available to suit your individual needs.
Many lenders specialize in providing mortgages for people who do not qualify for the products offered by mainstream lenders and they usually prefer to conduct their business through independent mortgage brokers.
Some larger mortgage brokers are even privy to exclusive and semi-exclusive deals. These mortgages are not available on the open market which means that it is always a good idea to contact at least one major mortgage broker to find out what they have to offer.