A mortgage broker helps to reduce mortgage payments for first-time buyers, those with bad credit and people that simply aren't clued-up financially. Mortgage brokers are able to trawl the entire mortgage market to identify the best mortgage deal. Mortgage brokers charge a mortgage fee of about 1% of the loan value, but the service offered can make the difference between acceptance and rejection.
Tied Agent vs. Independent Mortgage Broker
Many people make the assumption that the mortgage broker at their bank is independent when this normally isn't the case. Most mortgage brokers that work for retail banks are tied agents. This means that they are only able to offer the products provided by that bank and nothing else. A mortgage broker that is a tied agent provides only a restricted mortgage comparison service.
It may cost more, but always utilise the services of an independent mortgage broker. They will be able to trawl the entire market and find the mortgage deal that will reduce mortgage costs the most. A mortgage broker will also advise a first-time buyer or someone seeking a remortgage whether a discounted mortgage, fixed-rate mortgage or tracker mortgage is best for them.