Three Reasons to Use a Mortgage Broker as a First Time Buyer

The world of mortgages is a confusing and often slightly overwhelming experience for most homeowners, particularly first time buyers on the lookout for their first home and with very little previous experience.

With lots of business jargon flying around and so many different options on offer, it’s hard to work out which mortgage is the best fit for you. However, with lots of people wanting to get a foot on the property ladder as early as possible, it’s important you get the best deal for you and your partner.

Here, we’ve found three reasons why first time buyers should use a mortgage broker to help them get their first mortgage.

To give advice

As a first time buyer, you probably won’t have much previous experience with mortgages and might not even know your borrowing from your lending.

While researching on the internet can get you a fair amount of the way in understanding mortgages, it’s much more helpful to have a professional on hand who can help you navigate the pitfalls of the business. They can explain all the lingo and the specific terms of mortgages, preventing you from making some costly mistakes that could come back to bite you down the line.

They also have the business knowledge to help you make the best judgment for your own finances. They will know which lenders to steer clear of and which ones you have the most luck with approving your application, preventing you from lowering your credit score by having multiple rejections.

This post by Search Mortgage Solutions offers you more information for first time buyers.

More choice

When you go direct, you often only have a limited choice of lenders who deal with direct enquiries. When using a mortgage broker, they can give you more choice.

While this depends on the status of the mortgage broker, if you opt for one that has access to the whole of the market (which we would recommend), it means they can compare all of the options available to you across the range, rather than being pigeon-holed into a small number of lenders.

And, frequently, some lenders will only go through brokers meaning you can get access to some that would otherwise be restricted to you.

Convenience

One of the best reasons to use a mortgage broker is also one of the most practical ones. Mortgage brokers will do a lot of the legwork for you, conducting the time consuming research required to compare lots of different choices.

They can also cut out the work required to apply for a loan. Once you have provided your mortgage broker with all of your details, they can then fill in all the applications required to get approval.

They will also talk to lenders on your behalf, providing you with updates as you go rather than you having to spend hours on the phone negotiating your terms.

For more information on using a mortgage broker, visit this post by the HomeOwners Alliance.