What is a Mortgage Broker?

• Some mortgage brokers are free for you to use, such as L&C (they get paid commission by the lender). How good they are varies with the individual advisor.
• Other brokers will charge you ~£300-500, sometimes varying with the size of the mortgage. These brokers may also be paid a commision by the lender.

Awards and good reviews are a helpful indicator that a mortgage broker is good quality, but it’s also good to ask your mortgage broker some questions:

• Are they “whole of market”: this means they can access mortgages from lenders in every sector of the mortgage market.
• How many lenders do they have access to: ideally 90+, meaning they really can access all lenders that work with brokers.
• What are their fees: some brokers give advice for free but charge you if you want to purchase a mortgage, so make sure to ask.
• Will they tell you about direct-only mortgages: some mortgages have to be applied for by the customer directly, rather than by a broker. Brokers aren’t obliged to tell you about these, but if they’re willing to it can sometimes be cheaper.
• When are they available: some brokers work 9-5, which is not generally when you’re thinking about mortgages!
• What does their service include: for example, will they do the admin and chasing up, and inform you if better mortgages come up after you’ve already been offered one?

• Estate agents may recommend a mortgage broker, but do be wary.
• These brokers may charge you, may not have as full access to all mortgage products as other mortgage brokers, and a few have been accused of leaking buyers’ financial information back to estate agents to help them get the best price for the seller.
• It’s illegal for estate agents to require you to use their in-house mortgage service.

• Mortgage advisors might recommend various products to you, including buildings and contents insurance, life insurance and/or income protection, and maybe even a will.
• They might also recommend a solicitor, or conveyancer, to you. You can read more about making that choice in the task choose a conveyancer.
• It is always better to take a look on your own and compare a few quotes for any product or service. Unprompted recommendations tend to mean the person is getting a referral fee for introducing you, and might not be recommending you the best product for your needs.