A large mortgage is probably the biggest financial commitment you will ever make. If you are looking for a large mortgage, it is important to get the most competitive rate and mortgage that suits your goals and requirements.
It is not surprising that borrowers turn to professionally qualified intermediaries for advice on their borrowing needs. If you’re looking for a high-value mortgage, it makes sense to talk to an expert rather than apply online or by phone, as you’re unlikely to get independent, customized advice.
The technology company Avelo has published data showing that brokers are responsible for arranging six out of every ten mortgages in the UK, as opposed to one out of every five that are arranged through a lender or branch network. There are many advantages to using a Broker, and there is evidence that they are most likely to be successful in offering and completing the application. Avelo found that 75 per cent of all mortgage applications arranged through an intermediary were for supply. And, even more impressive, 85 per cent of mortgages offered through a broker were completed.
Avelo’s study also found that 27 percent of bank mortgages and less than one-fifth (15 percent) of mortgages arranged by mutuals are currently sold through their branch networks.
The research also revealed that there was a clear difference between banks and construction companies in the origin of their mortgages. The mutuals relied more on the intermediary market, with three-quarters of their mortgages arranged through a broker. In contrast, only 35 percent of bank mortgages were arranged through a national or London mortgage broker.
Using a broker has other advantages: the speed with which things are done. On average, just under one-fifth (18 per cent) of mortgage offers were produced within five days, with higher banks at almost one-third (30 per cent) and lower mutuals at just over one in 10 (12 per cent). About three-quarters of mortgage offers (73 per cent) were issued within 14 days.
Lenders, applicants and intermediaries view the time to offer as the key measure of efficiency and customer service. It will be extremely interesting to see what changes will be implemented over the next 12 months and their impact on mortgage efficiency.
Not only will the offer itself be delivered quickly, but dealing with experts means that you will know fairly quickly what is and what is not possible and they know who to go to for what product. The relationship they have established over time with the lenders ensures that you get the best possible offer that another broker/individual may not be able to provide. Time and efficiency is the key to high net worth, which is usually cash-rich and time-poor.
In addition to providing customized mortgage advice, an intermediary can also handle the paperwork involved in the process. If you want to avoid the hassle of applying for a mortgage, you should definitely consider talking to a broker.