For the best mortgage deals, borrowers almost always engage the services of a trained and registered mortgage broker or financial advisor. The process of obtaining the right mortgage can be a long and complicated one and the sheer scale of the financial undertaking means that a trusted expert is a very important companion on the journey. The potential borrower should also acquaint themselves with the basics of mortgages and the mortgage market itself.
As with most purchases, the best mortgage deals will be found after a little shopping around. Although there are fewer products on the mortgage market than before the recent credit crunch, one can still find around 2,500 different kinds of home loans. A price comparison website is a perfect first port of call for anyone interested in the best mortgage deals, as it will swiftly compare the various interest rates and mortgage fees.
Although such first steps are a good idea, when it is time for the actual nitty-gritty of the mortgage sale to take place, it is best to hand over to the professional broker, who can not only hunt down the best mortgage deals but also increase the chances of a mortgage application's acceptance. This gives the borrower increased protection in the event of any mishaps.
Before engaging their services, the potential borrower should ask the would-be broker if they compare mortgage deals from a picked selection of the leading mortgage lenders or if they are "whole of market". The former type of broker works to find the best mortgage deals from within this selection, whereas whole market brokers - as the name suggests - make a more thorough search among all possible lenders. Although this increases the chances of getting the best mortgage deals, a "whole of market" broker will usually cost more than the other kind and the search will naturally take longer.
Mortgage brokers earn their pay in one of two ways: either by charging an upfront fee or by skimming commission from the final transaction itself. A commission-based broker tends to charge the client between a quarter and a half-a-per cent of the total value of the mortgage. If they are assisting a borrower with a bad credit history though, a broker may end up charging a full percentile.
A fee-based broker will charge the borrower, claiming up to 1 per cent of the mortgage value. Both kinds of broker have their strengths and weaknesses, but if you have the budget, engaging a commission-based broker who scans the whole market is the best chance of getting the best mortgage deals.
As with most purchases, the best mortgage deals will be found after a little shopping around. Although there are fewer products on the mortgage market than before the recent credit crunch, one can still find around 2,500 different kinds of home loans. A price comparison website is a perfect first port of call for anyone interested in the best mortgage deals, as it will swiftly compare the various interest rates and mortgage fees.
Although such first steps are a good idea, when it is time for the actual nitty-gritty of the mortgage sale to take place, it is best to hand over to the professional broker, who can not only hunt down the best mortgage deals but also increase the chances of a mortgage application's acceptance. This gives the borrower increased protection in the event of any mishaps.
Before engaging their services, the potential borrower should ask the would-be broker if they compare mortgage deals from a picked selection of the leading mortgage lenders or if they are "whole of market". The former type of broker works to find the best mortgage deals from within this selection, whereas whole market brokers - as the name suggests - make a more thorough search among all possible lenders. Although this increases the chances of getting the best mortgage deals, a "whole of market" broker will usually cost more than the other kind and the search will naturally take longer.
Mortgage brokers earn their pay in one of two ways: either by charging an upfront fee or by skimming commission from the final transaction itself. A commission-based broker tends to charge the client between a quarter and a half-a-per cent of the total value of the mortgage. If they are assisting a borrower with a bad credit history though, a broker may end up charging a full percentile.
A fee-based broker will charge the borrower, claiming up to 1 per cent of the mortgage value. Both kinds of broker have their strengths and weaknesses, but if you have the budget, engaging a commission-based broker who scans the whole market is the best chance of getting the best mortgage deals.
