3 important reasons first-time buyers should always use a mortgage broker

A young husband lifts his wife in their new home surrounded by cardboard moving boxes

Mortgage brokers have become even more important to first-time buyers over the past year, according to figures published in the FT Adviser in May.

Half of all first-time buyers used a mortgage broker over the year from March 2020 to March 2021. Of those who used a broker, 98% described their services as “useful”.

The pandemic has made the housing market unpredictable and difficult to navigate, particularly for first-time buyers.

Here are three ways a mortgage broker can add value to you if you’re a first-time buyer.

1. Mortgage brokers know which lenders will be willing to work with first-time buyers

One of the biggest obstacles you might face as a first-time buyer is finding a lender who will be willing to take you on.

First-time buyers are often associated with risk for lenders as, being younger, you may have a smaller deposit and a lower income than an older buyer. You also don’t have any equity built up in a previous property to use in your transaction.

In combination, these factors mean you likely need to borrow more of a property’s value. This makes you a higher risk for a lender.

A mortgage broker will know which lenders are most likely to be willing to lend to you, exclusively exploring deals that you’ll be accepted for.

2. Mortgage brokers have access to a wider range of deals

Another advantage mortgage brokers have is their access to a wider range of deals than you might be able to find on your own.

Some lenders have deals that they exclusively offer to mortgage brokers, meaning there may be a more suitable deal for you that you won’t find on your local high street.

As a result, using a mortgage broker might mean being able to find the deal that best suits your circumstances.

3. Mortgage brokers can save you time and money

Perhaps the biggest benefit of working with a mortgage broker is that they can save you both time and money.

Finding a good mortgage deal that works for you can be a hassle; you’ll have to do all the comparisons and legwork yourself, and you still might not find a deal that you can afford.

A mortgage broker can scour the market on your behalf, searching across a range of deals and finding the ones that work best for you.

The value they’ll add in finding you a better, more suitable mortgage deal could see you save a considerable amount in the long term.

Get in touch with us

If you’re a first-time buyer, or you know someone who’s looking to step onto that first tricky rung on the property ladder, please do contact us at Edinburgh Mortgage Advice.

We’ll give you personalised mortgage advice that suits your circumstances, finding you a mortgage deal that’s affordable and works for you.

Email [email protected] or call 0131 339 2281 to speak to us.

Please note:

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.

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