How much could YOU save by using a mortgage broker?

Thursday, August 17th, 2017

What does a mortgage broker do?

With new lenders entering an ever-changing mortgage market, constantly updated products, different criteria being applied and vast differences in all lender service levels, many people want to remove the need for all the searching and time spent and just let the experts do it for them.

Does it cost to use a mortgage broker’s service?

In a world where commission payments from lenders have dropped dramatically, most mortgage brokers will now charge a fee for the work they do to search, find and secure the very best mortgage available to meet the individual circumstances. Whilst some brokers do ask for their fees upfront, here at Caboodle Financial Services Ltd, we only ask for our fee to be paid on successful completion.

Do I have to use a mortgage broking service?

Of course, for those that would prefer to do it themselves, it comes down to a straight comparison between not paying a professional mortgage broker fees verses the considerable time and effort that applicants will then have to commit to stand a chance of potentially achieving broadly comparable offers.

In fact, the real value in paying a mortgage broking fee is not just about finding appropriate products that the borrower qualifies for, (generally from a comprehensive panel of 50-60 mortgage lenders), it is also about identifying lenders who will offer the best deals and from that, most importantly locating those who will offer the right mortgage in all the circumstances.

Whether it is a misconception as to the amount of work that really goes on ‘behind the scenes’ or some other reason, not using a broker could turn out to be one of the costliest mistakes somebody seeking a new mortgage could ever wish to make.

Is it cost effective to use a local mortgage broker?

Using an example of an average mortgage of £168,900 over 25 years, if a specialised mortgage broker identifies just one mortgage deal fixed for 5 years that is 0.25% lower than that which the prospective borrower can find for themselves, their interest saving during the fixed rate period, when compared to their self-sourced higher rate deal, would be more than £1200.

Compare this saving to the fee that a professional mortgage broker such as ourselves here at Caboodle Finance would charge for such a transaction and suddenly using a broker starts to make sound financial sense from just about any angle. Of course, increase the mortgage size to say £250,000 and move the rate differential to 0.35% and that saving could rise to over £2,500!

Here at Caboodle Finance, of Sutton Coldfield, Birmingham we love to guide our clients through all of this. Call today on 0121 308 9114 or just click HERE to contact us by email to see how our mortgage broking experts could help you with your mortgage application.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan ratesis an Appointed Representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading name of Advance Mortgage Funding Limited which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England at SQ2 House, 240b Lichfield Road, Four Oaks, Sutton Coldfield, West Midlands B74 2UD (number 08044670).
Caboodle Financial Services Ltd is an Appointed Representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading name of Advance Mortgage Funding Limited which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products.
The Financial Conduct Authority does not regulate some forms of Buy to Let.

© 2017 Caboodle Financial Services Ltd