You are here: News & Views > Why do 70% of the UK prefer to use a mortgage broker?

Why do 70% of the UK prefer to use a mortgage broker?

mortgage application

Over the last couple of years, mortgage brokers have increased their market share to just over 71%.1  So why are the majority of UK homebuyers choosing to use an intermediary rather than going direct?

In most circumstances we’d want to cut out the middleman when looking for services for fear of it costing us more money.  However, mortgage advice from a reputable, independent broker can be an invaluable part of the mortgage process.  Here’s why….

Mortgage brokers are on your side

By going direct to a lender, you’ll only get to hear one side of the story.  They’re obviously not going to let you know about deals offered by their competitors, which ultimately means that you could be missing out on a much better rate elsewhere.

An independent mortgage broker is just that – they don’t work for any particular lender so they can offer you unbiased advice on a wide range of lenders and subsequent mortgage products, trying to secure the best deal to suit your needs.

Mortgage brokers are knowledgeable

Before offering you advice, mortgage brokers have to go through a lengthy training process to become qualified, and will build up a wealth of professional knowledge over that time.

Lending criteria has tightened over recent years, since the introduction of the Mortgage Market Review designed to ensure that homebuyers are able to afford their mortgages.

The application process can differ from lender to lender so having someone on your side who works with them on a daily basis and understands how they work can be advantageous.

Mortgage brokers can save you time

Whilst getting a mortgage can be an exciting time, it can also be a long and exhausting process.  With hundreds of products available from numerous lenders, it can be a hassle to have to visit each and every lender in order to find the best deal.  Not only this, but applying to a number of different lenders in a short space of time could be detrimental to your credit score, leaving a footprint on your file with each application.

Making your application through a mortgage broker should go through quicker, due to the fact that your broker should have used their expert knowledge of criteria to mitigate any potential risks and match you to the most suitable lender.

A mortgage broker is likely to save you money

Whilst you may see a great mortgage rate advertised on the high street, you should remember that ‘all that glitters is not gold.’

Some low rates may have hidden fees or may not be entirely suitable for your circumstances so using the services of a mortgage broker with expert knowledge should help you to avoid these pitfalls.

Most people assume that using a mortgage broker for advice will be expensive due to fees and charges so you’ll need to weigh up the pros and cons of using a fee-charging mortgage broker or one that offers free advice, claiming commission from the lender.

A reputable broker should base their advice on what’s best for your circumstances, not the deal that’s going to give them the highest commission.  The Financial Conduct Authority has rules in place to stop this from happening, but if you are uncomfortable over this, you may prefer to use a broker with up-front fee, although this won’t always guarantee you a cheaper mortgage deal.


Don’t be put off by the ‘middleman’ aspect of the mortgage broker.

Applying direct may suit some borrowers, but if you are looking for a helping hand to guide you through the mortgage process, then using a broker is probably a wise choice and could save you a lot of time and effort in the long run.   Many buyers find that once they’ve found the services of a good mortgage broker, it’s someone that they return to in the future when it comes to remortgaging or moving home so it could be a great long-term investment.

Request mortgage advice from a qualified adviser today.

The above post is intended to be informative but does not constitute advice – financial, legal or otherwise. Any opinions given are the author’s own and do not necessarily reflect the views of SO Media.


Leave a Reply

Your email address will not be published. Required fields are marked *

Sign up to our newsletter