The Guardian: Are Mortgage Brokers a Better Bet?

More than 60% of home loans are now taken out through a broker, and some industry experts predict this will be the preferred route for as many as three-quarters of homebuyers in the next five years, The Guardian writes in a recent article.

Brokered mortgages have risen in popularity of late as the mortgage industry becomes more closely regulated. 

More — and stricter — guidelines means it takes longer to book an appointment and get a mortgage directly from a bank or building society branch. And with a host of fees and charges, it can be more complicated than going with a mortgage broker, says consumer rights campaigner James Daley of website Fairer Finance.


Some brokers don’t charge a borrower at all, but instead take a commission from the lenders. The majority of brokers, however, do charge a fee and will also receive commission from most lenders. 

Regardless of fee, a good broker should consider not only the best priced loan for the borrower but also which lenders are more likely to underwrite a loan and which ones to avoid – such as those with a backlog of applications, The Guardian writes. 

The three key things to look for are the number of loans they offer, the amount you will be charged for their service and what kind of reputation they have.

Read the full article here

Written by Emily Study

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  • Being the largest does not necessarily mean the best! A good quality broker, let me emphasize on that, “a good quality broker” can wind up being the better choice for the borrower.

    Service can be better, personalized attention can be much better and a long lasting relationship has a better change of emerging with the broker. Theirs can be many advantages working with a brokerage firm rather than a large national lender.

    Don’t take what I have said to mean that a large lender/originator is not the way to go for a borrower, on the contrary. What I am trying to point out is that because a borrower is talking with a broker is not a bad thing, in fact many times it will work to the advantage of the senior borrower.

    John A. Smaldone

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