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Choosing and using a mortgage broker
When it comes to picking your mortgage, a broker can be a huge help. But they
don't come cheap, so it's important you get your money's worth. Sarah Crown
explains how to get your hands on a good broker, and how to make the most of it
when you do
You probably thought that, having picked out your perfect house, your
decision-making days were over. Frankly, you couldn't be more wrong. It's time
to put all thoughts of washing machines and window boxes out of your mind, and
focus on choosing something which will probably outlast all your furniture: your
mortgage.
Choosing a mortgage has always been fraught, but in recent years the market has
exploded. Gone are the days when the major decision you had to make was between
a variable and a fixed rate. Now, every lender seems to have their own take on
the product, from offset mortgages that set your savings interest against your
mortgage interest, to self-certification mortgages for the self-employed and the
newest offering from Abbey: a mortgage that pays customers up to 1% of their
outstanding mortgage balance every two years. Making sense of all the different
options and working out which is best for you is where mortgage brokers come in.
A mortgage broker is basically a financial adviser with specialist knowledge of
the mortgage market. He or she will single out the mortgage most suited to your
circumstances, negotiate on your behalf with the lender and, ideally, get you a
better deal than you could have done yourself, as some brokers have access to
mortgage deals that won't be available directly from the lender. All of which
sounds great: moving house is a stressful process, and having one less thing to
worry about can be a huge help, particularly if it means you'll be better off in
the long run. However, as with as with most financial services, a mortgage
broker doesn't come cheap. You need to make sure that you choose the right
person, and that you get your money's worth when you're dealing with them.
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