How to choose a good mortgage broker
A good mortgage broker can be the difference between getting the best mortgage deal for you or missing out and ending up paying more every month for one you're not happy with. They can also streamline the mortgage application process, helping you to narrow down your options and handling some of that dreaded paperwork.
But how do you choose a mortgage broker you can trust? And how do you find out who's any good? There are a few things to bear in mind to make sure you get your money’s worth when it comes to brokers. In this article, we walk through four steps you should take when choosing a mortgage broker that can help you to find the right one for your needs.
1. Check the FCA register
The very first thing you should do when considering hiring a mortgage broker is to check that they’re properly qualified and registered with the Financial Conduct Authority (FCA). In the UK, the qualification that is approved by the FCA is the Certificate in Mortgage Advice and Practice (CeMAP). You can check for this by searching their name in the FCA register.
If the mortgage broker is not on the FCA register, this means that they’re not registered with the FCA and therefore could be unregulated, illegitimate or a scam. It’s also important to check the register first as most lenders won’t approve a mortgage deal with an unregistered broker, so you’d be saving yourself a lot of bother further down the line!
2. Make sure their advice is not ‘restricted’
Another important step in choosing a broker is to find out whether their advice is ‘restricted’ or 'whole-of-market'.
Restricted advice
‘Restricted’ advice means that the broker will only offer you mortgage deals from a strict, preselected panel of lenders – in some cases only showing you products from a single company. This means you could be missing out on better deals from elsewhere.
Whole-of-market advice
A ‘whole-of-market' broker, on the other hand, has access to every available mortgage deal on the market at any given time. This way they can search the entire selection to find the very best deal for you, so you’re not missing out on anything.
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