Why use a Mortgage Broker?

Mortgage Brokers in the UK make their living from finding you a mortgage whatever your personal circumstances. They take your case to a panel of lenders and try to secure the best deal for you, saving you precious time. The broker effectively shops on your behalf - and with the experience of the marketplace, these brokers know who to go to to get you the a deal - and quickly.

A large proportion of the population still prefer to use a broker - not only does it save them time - but many brokers, like our selected specialists, offer a more personal touch, supplying personal underwriters to take you through all the processes and organising your mortgage from start to finish. A recent survey in Mortgage Strategy polled that many people still prefer to use experienced, ethical UK brokers to refinance their mortgage because of this personal service and attention to detail. Its in a brokers best interest to secure you a deal - brokers are like any other business - they want to keep you as a customer and enjoy the benefit of your repeat custom in the future.


If a broker is paid a commission by the mortgage lender, could I get it cheaper by going direct?

Not usually. In fact, if you go direct to a mortgage lender you will only receive information about their own mortgages and it is unlikely, therefore, that you will get the best deal going. Brokers, like our selected specialists, who review the whole mortgage market on your behalf, are paid a 'procuration' fee by lenders, in return for introducing you. This procuration fee is able to be paid, as it is the broker that has done all the marketing to find you in the first place. This is termed the 'Cost of Customer Acquisition' and, as the lender has not had this expenditure, they are able to pay the broker a marketing allowance for their trouble. Many brokers prefer not to charge you a fee as well. Any sum that a broker receives from a lender that provides you with a mortgage, will be fully disclosed to you. The whole process really is that transparent.

So is there not a temptation for a broker to get my mortgage from the lender who pays the most?

All brokers have to adhere to the Rules set down in the Mortgage Code and regulated by the Mortgage Code Compliance Board (MCCB). To comply with these rules a broker has to be able to prove that they have reviewed mortgages from many different sources to arrive at the recommendation to you that they approach a certain lender on your behalf. Compliance on this issue is strictly enforced by the MCCB. In the end, if a broker did favour one lender over another for their own ends, they would lose their MCCB membership and would be unable to approach mortgage lenders. The mortgage lender would refuse to accept any mortgage applications from them. The broker would be out of business.