A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses.
Mortgage brokers exist to find a bank or a direct lender that will be willing to make specific loan an individual is seeking. With a mortgage broker in Brighton, you will have an easier time getting the mortgage loan you need at a great deal. The right mortgage broker will also improve your chances of getting a mortgage even if you have a poor credit score or are under any other circumstance that may complicate your mortgage application.
And because professional mortgage brokers are regulated to assure compliance with banking and finance laws in the jurisdiction of the consumer, you can be rest assured you are in good hands.
What Is A Mortgage?
Quite simply, a mortgage is a loan. But unlike personal loans, it’s specifically tied to a piece of property so that it acts as security against the loan. If you default on your payments, then your mortgage provider has the right to take back (repossess) the property.
Typically, mortgages are for a set period, usually 25 years although shorter or longer terms are also possible. Once you’ve borrowed the money, a repayment plan is set in place. Although there are different types of mortgage, the most common is that you have a monthly capital repayment plan.
As well as paying back the original money you borrowed (the capital), you’ll also be charged interest on the amount you’ve borrowed. A mortgage is a debt instrument, secured by the collateral of specified property, that the borrower is obliged to pay back with a predetermined set of payments. Mortgages are used by individuals and businesses to make large property purchases without paying the entire value of the purchase up front. Over a period of many years, the borrower repays the loan, plus interest, until he/she eventually owns the property without a mortgage. If the borrower stops paying the mortgage, the lender can repossess the property the mortgage is secured on.
On a residential mortgage, a home buyer pledges his or her house to the bank. The bank has a charge on the house and should the home buyer default on paying the mortgage then the lender may repossess the property. In the case of a repossession, the bank may evict the home’s tenants and sell the house, using the income from the sale to clear the mortgage debt.
Mortgages come in many forms. With a fixed-rate mortgage, the borrower pays the same interest rate for an initial term i.e. 2, 3 or 5 years, although longer fixed rate terms are available. The monthly payment never changes during the fixed rate term. If market interest rates rise, the borrower’s payment does not change. If market interest rates drop or increase, the borrowers mortgage repayment remains the same.
After the fixed rate ends your mortgage normally reverts to a “standard variable rate” which is a rate which is set by the lender, bank or building society which is lending you the money. This rate can go up or down whenever the lender sees fit so if you have a good broker or a good diary system you must remember to remortgage or call your existing lender and change the rate by looking around 3 months before that rate increases to the variable rate to save you paying much higher monthly payments.
In short the initial interest rate is often a below-market rate, which can make a mortgage seem more affordable than it really is. If interest rates increase later, the borrower may not be able to afford the higher monthly payments. Because the variable rates can change at any time the monthly payments are unpredictable after the initial term.
Other less common types of mortgages, such as interest-only mortgages, tracker rates, offset mortgages, buy to lets, and bridging loans and secured loans may be available to you so speak with an independent broker to search your options. Our mortgage brokers in Brighton can help you with getting the most suitable mortgage deal to match your unique needs and circumstances
Why Use A Mortgage Broker?
There are a wide range of benefits to be enjoyed from working with a mortgage broker in Brighton for your mortgage application. Some of the more obvious benefits include:
The most obvious benefit for choosing a mortgage broker is the potential to save money. It’s basically free money. You fill out a few details and the hard work is managed by an experienced professional who has your best interests in mind.
Some people are sceptical about this, especially with the concept of a mortgage broker not yet universally understood—there must be a catch somewhere, right? While this thinking is understandable, rest assured most mortgage brokers don’t have an incentive to work against your best interest.
In fact, the broker could be in serious trouble if they are unable to prove to you or their regulators and the Financial Conduct Authority or the Prudential Regulation Authority why they have recommended the mortgage they have.
A lot of mortgage brokers can obtain exclusive mortgage deals not found on the high street, potentially making the total loan cost lower for the client. A reputable mortgage broker will disclose how they are paid for their services, as well as detail the total costs for the loan. Positive user experience is much more valuable to a mortgage advisor company than padding out an individual broker’s pocket.
Finds The Most Advantageous Deal
A mortgage broker represents your interests rather than the interests of a lending institution. They should act not only as your agent, but as a knowledgeable consultant and problem solver. With access to a wide range of mortgage products, a broker is able to offer you the greatest value in terms of interest rate, repayment amounts, and loan products. Mortgage brokers will interview you to identify your needs and your short and long term goals. Many situations demand more than the simple use of a 30 year or 15 year mortgage so innovative mortgage strategies and sophisticated solutions are the advantage of working with an experienced mortgage broker such as mortgage to raise capital to repay debts or money for the children or marriage or do essential home improvements or even purchase other properties like buy to lets.
Has Flexibility Expertise to Meet Your Needs
A mortgage broker navigates the client through any situation, handling the process and smoothing any bumps in the road along the way. For example, if borrowers have credit issues, the broker will know which lenders offer the best products to meet their needs. Borrowers who find they need larger loans than their bank will approve also benefit from a broker’s knowledge and ability to successfully obtain financing.
Provides you a personalised service
Save Time & Hassle
It’s not all about money. Your time and sanity are just as important as saving a bit of extra cash. Consider how much time it would take you to research multiple loan types from multiple lenders. With a mortgage broker, you only need one application, rather than completing forms for each individual lender. Your mortgage broker can provide a formal comparison of any loans recommended, guiding you to the information that accurately portrays cost differences, with current rates, points, and closing costs for each loan reflected. Your broker compares loans from major and less popular lenders to find you the best deal with the lowest rates and overall cost.
Take some of the work off your shoulders and outsource it to someone who can give you expert advice.
Mortgage brokers do the legwork for you by supporting you throughout the application and pre-approval process, including doing all paperwork, answering questions, helping you apply for government schemes and shedding light on options and loan features you may not have considered or even known about. These features may include things like drawdown facilities, the option to make extra repayments, and offset accounts to name a few. These features can make a massive difference to your mortgage experience and costs. Better yet—if you’re unfamiliar with these concepts and how they may affect you, your broker can clarify and answer questions over a phone call.
Access to exclusive non-advertised deals
Brokers have access to exclusive deals that aren’t advertised by the banks. The banks push these deals onto the brokers, and the brokers are in charge of selling the products.
Speaking to a broker unlocks these extra perks you would otherwise miss out on by going directly to a bank. The bank can only flog their own deals not all the other banks as well but a broker can search the whole of the market for the best deal.
Better chance of pre-approval success
Whenever you request an Agreement in principle / Decision in principle of a loan, if you’re knocked back, this leaves a mark on your credit rating. Brokers have the knowledge and experience required to give you the best shot and being approved first-time around.
Access to expert knowledge
Mortgage brokers help people secure loans for a living. They have access to helpful information and exclusive deals you would otherwise not find. Loans come with subtleties you could miss if you’re not looking for them. And it’s these subtleties that can make a difference to your mortgage in the long haul. Having an experienced professional who can point these out for you is a huge benefit.
Instead of taking time out of your day to research thousands of loans and multiple lenders, and still potentially missing key subtleties, why not hand the work to someone who’s experienced in the industry? Just as you would contact a plumber for a leaking pipe, or a hairdresser to replenish damaged hair, a mortgage broker is an excellent choice for all your home loan needs.
About Mortgage Saving Experts
Mortgages and insurances are not as complicated as they may first seem. That’s why finding honest advisers, with invaluable experience and knowledge is so important.
Our Mortgage Saving Experts will make your journey as seamless and as clear as possible. After all, why make things more difficult than they have to be? Let us simplify everything for you and ensure we get you the best deal possible.
Mortgage Saving Experts give our customers an honest and transparent service that will leave you thinking that mortgages and insurances aren’t as daunting as they may seem. We here at Mortgage Saving Experts treat each mortgage and insurance application as if it were our own. This is what we’re all about.
Our Team of Brighton Mortgage Experts
Because we’re regulated by the Financial Conduct Authority (FCA) we have to ensure we get you the best possible deal on the market. We have to justify to you and our regulators why we recommend the mortgages we do, so you know exactly why you have the mortgage you have.
Down to Earth Mortgage
We are an honest, passionate, enthusiastic and very experienced team of mortgage and insurance experts.
Our mortgage and insurance experts pride themselves on listening to what your current and future objectives are.
We then work closely with you to achieve those goals.
Why chose Mortgage Saving Experts?
When you take out a mortgage, you have an initial rate for the first few years. After this initial rate finishes, the rate increases to the lenders variable rate. Three months before this rate is up for renewal, our team will contact you again to get a new deal in place before your rate and monthly payments increase. Other benefits of working with us include:
- You get a better deal than the bank variable rate so you save money
- You do not have to remember when you deal finishes as we will do it for you
- You can sit back and relax, while we do all the hard work for you
- We know our stuff – you’ll always get advice from a qualified mortgage expert.
- We compare, advise on and arrange the best mortgage for you from 1000’s of deals
- You’ll get expert advice and support throughout the entire mortgage process
Our Approach to Mortgage Advice
We offer a personalised service that takes into consideration your unique needs. Our approach to mortgage advice involves 3 Simple Steps:
- Have An Initial Chat So We Can Get To Know You And What Your Requirements Are.
- We Search The Whole Of The Market To Find The Best Deal For You.
- We Will Present To You The Cheapest And Best Deals Available To You For Both Mortgages And Insurances
How Mortgage Saving Expert Brokers Can Help you:
What makes our services superior to that of other mortgage brokers in Brighton include:
- Understand your needs and circumstances through fact finding
- Explain the costs involved with buying and selling
- Request relevant documents to assist with the application
- Recommend and explain the potential mortgage
- Answer any questions you may have
- Obtain an agreement in principle
- Submit your full mortgage application
- Liaise with your estate agent, mortgage lender and solicitor and answer any question through to completion
Mortgage Types We Provide Expert Advice On
We offer expert advice on a wide variety of mortgage products. By working with our team, you will have no trouble finding the perfect mortgage product to match your needs. Some of the most commonly requested Mortgage Types we help with include
First time buyers
First Time Buyers are classed by most mortgage lenders as people who have either
- Never owned a property or
- People who have owned a property in the past but not owned one for 6 months or more.
Different lenders have different ideas and rules regarding this. Being a First Time Buyer is not generally a problem.
For stamp duty purposes to qualify for the stamp duty relief for First Time Buyers you must have never owned a property anywhere in the world ever.
Mortgages may seem to be a daunting process but honestly, it does not have to be. Buying your first home is one of the most exciting things ever so if you find a good broker to do it for you at a reasonable price then please use one. The reason you should use one is quite apparent. After all; if your car breaks down and you knew nothing about cars for, you would not try to fix it yourself, you would take it to a mechanic. It’s the same with mortgages. Mortgage brokers can save you time, effort and money so why not use one? The initial consultation is free of charge.
Buying a home
If you’re considering a home purchase in the near future – or within a few years – you should brush up on your mortgage knowledge. Learn what to do before applying for a mortgage, what to watch for during the process, and how to use a mortgage after you’ve bought your home. If you can’t be bothered with that speak to an adviser who will guide you through it.
Your Credit is Crucial
A mortgage is a big deal. The bank risks a lot of money, and they have been increasingly cautious since the subprime mortgage debacle in 2008. To qualify for a mortgage, good credit is helpful but not essential. If your credit score is low or there are other circumstances that may complicate your mortgage application, we have the expertise to provide all needed guidance to help you qualify for the best mortgage deal for your dream home.
We can also guide you concerning How Much Home you can Afford and what should be your price ceiling based on your current situation. Not only will we help you buy your dream home, we will help you finance it with the lowest cost and most convenient mortgage deal available.
Remortgage your home
In a nutshell, all you are doing with this, is changing from one lender to another to get a better rate or cheaper deal. The two do not necessarily go hand in hand. Let me explain. If you have a small mortgage, you will probably find it is not worth while paying an arrangement fee to the lender to go on a low rate. You may find it cheaper by going on a slightly higher rate and paying no arrangement fee with the lender at all. Always best to speak with someone before deciding on which deal to go for as you don’t want to be caught out by getting a more expensive deal overall even though the rate is much lower. Be careful!
One benefit of remortgaging is that you will not normally pay for any valuation or solicitors fees although not everyone does qualify for this. The reason being, it depends solely on your circumstances at the time of remortgaging.so please check or ask your adviser.
A remortgage that’s done on time is a smart way to significantly reduce the cost of your mortgage bills. While a remortgage deal can be beneficial, it is not the best move for everyone especially depending on your unique circumstances.
- Mortgage debt is already small.
- Financial circumstances have changed.
- High early repayment fee
- Home value dropped.
- You have credit problems
- Already on a great rate
- We will advise you whether or not to pursue a remortgage
Buy to Let
Buy to let property is a property you wish to purchase and rent to tenants. You are not allowed to legally live in the property. If you are a First Time Buyer you can purchase a buy to let property but the amount of lenders available is restricted and there are extra checks the lender makes in these circumstances.
- When buying a buy to let property there are a few things you may need to know.
- The amount of loan you can borrow is pretty much dependent on how much rental income you get
- You will have to pay an extra 3% stamp duty on top of your normal stamp duty. If the property is below the value at which stamp duty becomes liable you will still have to pay the extra 3% of the purchase price
- TIP. If you are purchasing a second property, ask your conveyancer/solicitor of the figure you will have to pay.
How Much Do Mortgage Brokers Charge?
Most mortgage brokers get paid commission from the lenders, this will be a percentage of the mortgage loan you receive. This is usually around 0.33% although this does massively vary depending on what mortgage you require, for example, buy to let or a residential mortgage and whether you have had any credit problems in the recent past. Most independent brokers charge a flat fee, which is typically around £500. Be sure to ask brokers how you pay them. They must be completely transparent, telling you how much and what fee structure they use.
Our fee structure is based upon charging the client £695 and any commission which is received from the mortgage lender is deducted from that figure. If the commission we receive is less than £695 we then ask the client to make up the difference between what we have been paid in commission up to £695. For example if we received commission of £495 then we would ask for a fee from you of £200 which is payable when your mortgage offer has been produced so we are only paid on results
How Much Can I Borrow?
This depends on several factors, like how much deposit you have and how much you earn, how many children you have, what debts you have in the background. How much a lender is willing to lend is based upon a full affordability assessment where they will look to understand your income, any loan or credit card commitments and regular essential household expenditure. In addition, they also perform a credit check to make sure your credit rating is suitable for mortgage purposes.
To get a more accurate idea of how much you can borrow, get a decision in principle before you apply for a mortgage in full. Arrange an appointment with one of our qualified mortgage experts today. We can at least give you an idea without having to do any credit checks at the initial stage
Handy Tools and Calculators
With a clear idea of maximum you can borrow and how much the loan will cost you, it becomes easier to plan your future. Use this handy calculator to see just how much your mortgage repayments are going to be based on your total loan amount and interest rate. Just enter those values together with your term and press “click to calculate” to instantly see how much you have to repay each month.
The Latest Best Mortgage Rates
Whether you are looking to remortgage, move home, find a first-time buyer mortgage, or a buy-to-let, we can help. We compare thousands of latest mortgage deals to help you find exactly what you are after
What Our clients say About us
Our list of happy clients in Brighton is long and diverse. If you are in doubt that we are the professionals to get you the most ideal mortgage deal in Brighton at lowest price, check out what some of our customers have to say about their experience with us
Latest Mortgage News
The more information you have at your disposal when seeking the best mortgage deal, the better the position you will be in. Below are latest insightful mortgage news to help you get started on the right path.
Mortgage Regulatory Information
Most mortgages in the UK are provided by building societies, banks and specialised mortgage lenders. All in all, there are 200 different financial institutions offering mortgages in Britain although Lloyds Banking Group and Nationwide Building Society have the largest share of the market.
Although banks and building societies have always been closely regulated in the UK, the former Financial Services Authority (now the FCA) implemented a regulatory scheme specifically for mortgages as a result of the Financial Services Act of 2000.
The professional conduct of mortgage providers is regulated by the FCA. There are strict rules regarding the use of unfair and misleading adverts and promotions as well as checks that the terms of any contract for financial services are fair for the consumer. Regulations were originally set out in the rules for Mortgage Conduct of Business (MCOB) but these regulations were overhauled as a result of the FCA Mortgage Market Review (MMR) in 2014.
As regards their financial conduct, deposit-taking firms in the UK come under the jurisdiction of FCA’s sister organisation, the Prudential Regulation Authority. They ensure that firms have a high enough level of capital to offset their lending risks.
If you have a complaint about your mortgage provider, your first step is to take the matter up with them. If you feel it hasn’t been dealt with to your satisfaction, there’s a complaints procedure, through the FCA, which can be referred to the Financial Ombudsman Service
What To Ask Your Brighton Mortgage Broker?
This is a logical follow-up question. Again, insist on a specific reply.
And once you’ve received answers to these questions, ask if the broker would be willing to put both claims in writing. That will indicate how seriously those claims should be taken.
If a problem arises during the loan application process, you’ll want your broker to respond quickly – hence this question.
Again, demand a specific answer – “Within three hours”, say, rather than “Quickly”.
The reason for this question is so you can discover whether the broker will closely guide you through what is a complicated and stressful process – or expect you to figure it out for yourself.
Organising finance and purchasing property can be complicated and stressful, so you want to know you’re in safe hands. That’s why, before you settle on a particular broker, you should challenge the broker with this question.
Don’t let the broker get away with vague statements like “Because I’m the best” or “Because I provide great service”. Use follow-up questions to demand detail. “What specific things make you better than other brokers? What, specifically, do you do to deliver great service?”
Another important question to ask. That’s because while most brokers focus on ‘plain vanilla’ clients, others might focus on, say, sophisticated investors or borrowers with credit problems.
Hypothetically; Broker A might have done 450 vanilla loans and 50 bad-credit loans, while Broker B might have done 50 vanilla loans and 250 bad-credit loans. So if you were a borrower with credit problems, you might be better off with Broker B.
Next, probe them about their customer service standards
A great way to utilise the knowledge and experience of a broker is to get them to work out the true cost of your home loan. Based on whether you’re paying Repayment or interest only, how much of a deposit you have, the length of your loan term and the rates payable your broker will be able to obtain a mortgage illustration which will have the true cost on it. This is normally depicted by the Annual Percentage Rate (APR)
By maximising your deposit amount and minimising your loan term, you stand to significantly reduce the overall cost of your loan. However, there is much more to answering what the true cost of your home loan will be. Upfront fees such as valuation fees, conveyancing and legal fees need to be added to the total cost. Ongoing fees such as those you can incur for using a drawdown facility.
While it’s impossible to forecast the entire cost of your mortgage to the penny – and let’s not forget how life circumstances and changes can affect your ability to pay your loan too – a broker can can help clarify the big picture details. Mortgage Saving Experts can recommend any protection or insurances to protect you and your family to cover life unfortunate eventualities and our team of advisers can use this information to help you decide which loan is best for your circumstances.
The big question plaguing home buyers tends to be, ‘how much can I borrow?’ Each lender is massively different in this area so as a maximum depending on many factors. In the majority of cases, you can borrow up to around 5 times your gross annual salary but in some instances, you may borrow up to 5.5 times your gross annual income
Once you speak to us, however, we’ll be able to give you a much more accurate indication of your borrowing capacity. Brokers act as the go-between for you and the lender. Lenders will need to know your living expenses, debts, credit score and whether you have dependents. A broker can factor all these things into the right loan.
A broker can also explain home loan terms you’ll need to know, such as LTV, which is the initialism for Loan-to-Value and refers to the percentage of the total loan amount you seek to borrow as a percentage of the property purchase price or value. They can also explain things like the differences in interest rates and repayment types such as Interest Only and Repayment (Capital & Interest)
This is a good follow-up question to ask, as it will give you a better understanding of the mortgage broker’s experience.
For example, imagine two brokers joined the industry in 2013, but that Broker A had written 500 loans during that time and Broker B had written 300. In that case, even though both parties would be able to claim five years of industry experience, there would be a clear difference in hands-on experience.
This is a good place to start, because a more experienced broker will generally be more knowledgeable than a less experienced broker.
Press the broker to give you a specific answer, such as “Eighteen years” or “I’ve been a broker since 2007 and in the mortgage industry since 2001”, rather than something vague like “I’ve got a lot of experience”.