2021 has been a tumultuous year for the housing market, seeing a flurry of activity among buyers and setting new records for average house prices.
Yet despite this growth, research from bridging finance lender KSEYE published in FTAdviser shows that one in three borrowers have been rejected for at least one mortgage application they’ve submitted in the past five years.
30% of those rejected were self-employed workers, with 44% saying that the reason they had been rejected was down to their irregular income.
With this many people being rejected for mortgage applications, it’s once again a clear reminder that working with a mortgage broker is often the best way to find and apply for the right deals.
Here are just five reasons why working with a mortgage broker can help you to find and get accepted for a deal that works for you.
1. Search across the market on your behalf
Firstly, a mortgage broker can scour the entire mortgage market to find a deal that works for you.
When you’re trying to find a mortgage by yourself, it can be difficult to know if your application will be approved. Without knowing which lenders are most sympathetic to certain people, such as first-time buyers (FTBs) or self-employed workers, you may end up applying for deals that simply aren’t suitable for you.
Meanwhile, a mortgage broker will assess your entire financial situation and only suggest lenders and deals that fit your needs. That way, you’ll boost your chances of being accepted.
2. Give you access to deals that aren’t publicly available
There are many websites that allow you to search for mortgage deals online, seemingly making it easy to find the ones that are suitable for you.
But did you know that mortgage brokers also often have access to deals that are only available by working with them?
That means, by not working with a mortgage broker, you may not be seeing the full range of deals that you could actually benefit from. There could be a deal that’s perfect for you among the range of deals they have that you simply wouldn’t know about otherwise.
3. Provide advice on more than just the interest rate
Another huge benefit of a mortgage broker is that, with their huge range of knowledge of mortgages, they’ll be able to consider more than just the interest rate.
Often, when you’re finding a mortgage, your priority ends up being the lowest rate, as it can seem like the most important thing.
But a low rate on a 40-year mortgage could ultimately see you pay back more to the lender than a 25-year mortgage on a slightly higher rate. Your broker will be able to do these sums for you, working out the most cost-effective way to grab yourself a deal.
There are many other considerations to take into account when finding a mortgage deal. This could include elements such as:
- Product fees that you’ll pay upfront
- The loan-to-value (LTV) of the deal, that is, how much you’ll need as a deposit
- The length of the term.
A mortgage broker will take these considerations into account, recommending deals that work best for you.
4. Save you time and money
Taking all these different considerations into account ultimately means that your broker can save you money. Even though you might pay a fee for their services upfront, being on the right mortgage deal for you can save you a considerable sum on the repayments.
This can really add up over the years if you continue to return to your broker when you take a short-term fixed deal. Working with your broker over the 25 years, or however long your mortgage is, could ultimately save you thousands of pounds.
Crucially, working with a mortgage broker can also save you a great deal of time. If you’re self-employed or a sole trader, this is no doubt important as it gives you the space to work on your business, safe in the knowledge that a professional is handling your mortgage needs.
5. Give you reassurance you along the way
Most importantly of all, working with a mortgage broker means having a professional in your corner with your best interests at heart.
Being rejected for mortgages can be highly disheartening, and it can feel like an uphill struggle to get anywhere.
So, by working with a mortgage broker, you’ll have someone who knows how to navigate the market, offering you support and guidance along the way.
This service can be invaluable, helping you to stay positive in what can feel like a long and arduous process.
Work with us
If you’d like a mortgage broker to help you find a deal that works for you, please get in touch with us at Edinburgh Mortgage Advice.
Email [email protected] or call 0131 339 2281 to speak to us.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
Buy-to-let (pure) and commercial mortgages are not regulated by the FCA.
Think carefully before securing other debts against your home.