Thursday, August 17th, 2017
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.
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.
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.
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.
Caboodle Financial Services Ltd
240B Lichfield Road
Sutton Coldfield B74 2UD
Telephone: 0121 308 9114