Why Mortgage Brokers are best placed to find the cheapest mortgage

How a mortgage broker can offer you savings in several areas

When buying a property in London, it’s important to shop around for your mortgage, especially since this is likely to be the largest financial commitment you ever make. The average sold house price in Dulwich, for example, is more than £650,000. But, with so many deals around, how do you find the cheapest one that best meets your needs? 

Saving yourself the legwork of comparison 

Many of us are well-practised in using comparison sites for everything from insurance to credit cards, but when it comes to mortgages there are too many other considerations to make this a simple task. A more effective way to save yourself the legwork of endless searching and comparisons is to employ the services of a mortgage broker – a financial advisor specialising in mortgages.  

A mortgage broker will do the hard work for you, finding the best deal available based on your particular circumstances and even applying on your behalf, meaning that you can get on with planning your move instead. 

The role of the mortgage broker  

As experts in their field, mortgage brokers know the deals that are available as well as the specifics of different lenders. They will also often have access to special deals that you wouldn’t be able to access if you were applying as an individual, although the flip side is that some deals are only available by applying directly to the lender.  

A mortgage broker can not only work out the mortgage that best fits your needs but will also have a clear idea of which lenders are most likely to accept you and can even make an initial application on your behalf. The benefit of this is that you don’t impact your credit score with failed mortgage applications to deals you were never going to be able to get. 

In a fluid market with forecasts around inflation and fixed rate mortgages changing weekly, a respected broker will advise on locking in on the most competitive mortgage deals for an extended period allowing you to purchase your preferred property with some certainty surrounding your monthly payments.

How to choose a mortgage broker 

A whole-of-market broker assesses your fit to every deal available and is therefore your best bet to securing the cheapest deal. By contrast, other brokers may only quote from a more restricted panel of lenders meaning that you risk missing out on savings, or may even be tied to recommending just one product. Most brokers are happy to work with you via in-person meetings or speak to you remotely. 

What will I pay for their advice? 

The mortgage broker will charge a fee from their advice. Understanding what and how that fee will be paid is essential before you enter into a contract with them. The usual scenario is that the mortgage broker earns a commission from the lender for organising the mortgage. There may also be a fee from the mortgage broker on top of that, calculated either as a flat rate fee or as a percentage of the mortgage value you borrow - typically between 0.3% and 1%. 

So how much can I save? 

Even with these additional fees, the savings generated by using a mortgage broker, rather than trying to source a mortgage deal yourself, are likely to be significant. Not only are you likely to have secured the cheapest deal for your circumstances but you’ll also save yourself the time, effort and stress of doing it yourself – and that is worth its weight in gold.

Here at ludlowthompson we have 30+ years of experience selling London properties and are here to provide the help and advice you need for a stress-free purchase. We also offer a free mortgage advice service, so if you are keen to investigate your options simply email customerservices@ludlowthompson.com and we'll put you in touch with our mortgage expert.