Bank vs Broker. Which will work best for you?

When it comes to securing a mortgage, deciding where to turn for advice is the crucial first step.

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Should you go straight to your bank’s internal mortgage broker or explore the services of an independent mortgage broker?

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Each option comes with its own set of benefits and challenges, but ultimately, the choice is up to you.

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In this guide, we will break down the advantages and disadvantages of each option and give you all the information to allow you to make the correct choice for your unique circumstance.

Bank vs Broker

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Each route means you will be dealing with a mortgage broker, as banks employ their own internal teams and can only recommend the banks mortgages, no one else's.

So, really, the question to ask is, should I be using an independent mortgage broker or one tied to a bank or builder society?

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Here are some things to think about to inform your decision.

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Your finances – Your financial situation will have an impact on your options, as people with a low credit score or income can have their lender limit their options due to not approving applications.

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Independent mortgage brokers can assess the entire market, consider your specific situation, and advise you on which lenders to avoid and which ones they believe, based on their expertise, will likely accept your application.

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What kind of property do you want to buy? -  If you are after a home that is a conversion or even want to build your own home it can create a challenge finding a lender.

Most high street lenders go for mortgages on classically built brick-and-mortar homes that hold their value. If you want to have a unique home or make your own to your exact preferences, the best option for you will be an independent broker.

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Timescales – The timescale for getting a mortgage isn't a quick process; the broker at the bank can be seen as simpler and quicker as there are limitations on the offers they can give you.

The cost of using an independent broker is often offset by the variety of deals they can provide, which are frequently cheaper than those offered by brokers at banks or building societies.

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Advice – Something else to consider when choosing between independent and bank brokers is the advice that they give you.

Banks or building societies will not be able to give you impartial advice regarding all available mortgages. Their goal will be to sell you a mortgage from their limited range.

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Independent mortgage brokers can look all over the market for the best deals possible, meaning their advice is impartial and more beneficial to you.

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Always Remember:

YOUR HOME MAY BE REPOSSESSED IFYOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.  

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Please See Below for Condensed List.

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Bank Advantages and Disadvantages

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Advantages of Getting Your Mortgage from a Bank

-           They will know your financial history and already have access to the information needed.

-           You are already a customer, making the process feel more familiar.

-           There are no broker fees when you go straight to a lender.  However, there can be set up and product fees.

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Disadvantages of Getting a Mortgage from a Bank

-           Your choice of mortgage offers will be limited to the offers that the bank or building society has available to them.

-           Just because you are a customer of your bank it doesn’t mean they will accept your application.

-           Some people may struggle to manage the communication between all the parties necessary for the process. (Solicitors, estate agents and lender communications)

-           You will not get completely impartial advice as the lender will want to sell you a mortgage from their range.

Independent Broker Advantages and Disadvantages

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Advantages of Using a Broker

-           Brokers can look at the whole range of offers and advise you on which lenders to avoid; having to work across the whole market every day makes them experts in              the market and where would be best for you.

-           Brokers are impartial and have your best interests at the forefront of the process.

-           If you are not the ideal property buyer, e.g. Self-employed, have bad credit or are looking at a unique property, the best option is a broker for you as they have the              whole market to find you the best deal.

-           Mortgages are very daunting and confusing undertakings, especially for first-time buyers; having a broker can be helpful in making the information accessible.

-           If you are not yet ready for a mortgage or in a place where you can get one, brokers can help you prepare for one and advise on the steps you will need to take.             Here at Hello Mortgage, we offer free initial mortgage advice for our customers to talk about the next steps necessary to make you eligible for a mortgage.  

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Disadvantages of Using a Broker

-           It can take a little longer to get to the application and complete this process as there are more offers to compare to get you the best deal rather than putting an application in straight away.

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Always Remember.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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To start your search for your new start, contact Hello Mortgage Today!

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Email: hello@hellomortgage.co.uk

Phone: 0800292 2557

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