Do you need a mortgage broker to remortgage?
Get a personalised mortgage renewal through Changemymortgage in 15 minutes and up to £500 in cashback
When it comes time to remortgage, many homeowners face the dilemma: should they approach their lender directly or seek the expertise of a mortgage broker? While it's not strictly necessary to use a broker, there are several compelling reasons why doing so can be advantageous.
The Evolving Mortgage Landscape
Since you took out your original mortgage, a lot may have changed in the market, your personal circumstances, and the value of your property. Interest rates fluctuate, new mortgage products are introduced, and lenders update their criteria. Similarly, your financial situation might have evolved—you might be earning more, have different debts, or have improved your credit score. Your property's value may also have increased, affecting your loan-to-value ratio and potentially qualifying you for better deals.
The Role of a Mortgage Broker
A mortgage broker acts as an intermediary between you and potential lenders. Their primary role is to find the most suitable mortgage product for your unique circumstances. Here are some key benefits of using a broker:
Access to a Wide Range of Products: Mortgage brokers have access to a broad spectrum of products from various lenders. This range is often much wider than what a single lender can offer. Brokers can identify deals that you might not find on your own, including those that are exclusive to broker channels.
Expert Advice: Brokers are experts in the mortgage market. They stay updated with the latest products, interest rates, and lending criteria. They can provide tailored advice based on a thorough assessment of your financial situation, helping you understand the best options available.
Saving Time and Effort: The remortgaging process involves a lot of paperwork and negotiations. A broker handles much of the legwork, from gathering documents to liaising with lenders. This can save you significant time and stress.
Potential Cost Savings: By finding the most competitive deal, a broker can save you a substantial amount of money over the term of your mortgage. Even a small difference in interest rates can result in significant savings.
Guidance Through Complex Situations: If your financial situation is complicated—for instance, if you're self-employed, have multiple income streams, or a poor credit history—a broker can navigate these complexities more effectively than you might be able to on your own.
Direct Lender vs. Broker
While going directly to your current lender can be convenient, it often means limited options. Your lender can only offer their own products, which may not be the best fit for your current needs. Additionally, lenders might not proactively offer you their best rates, especially if they know you’re not shopping around.
By contrast, a broker compares multiple lenders and products, ensuring you get the best possible deal. They can also provide a more objective recommendation since they are not tied to any single lender.
Cost of Using a Broker
Many mortgage brokers charge a fee for their services, which can be a drawback for some. However, ChangeMyMortgage offers a unique advantage: they do not only not charge a fee for their services. Instead, they offer cashback on their deals, making the process even more worthwhile for you. This means you get expert advice, access to a wide range of mortgage products, and a financial bonus at the end.
Conclusion
While it's not essential to use a mortgage broker when remortgaging, doing so can offer numerous benefits. With the market's constant evolution and potential changes in your personal circumstances, a broker can provide valuable insights and access to the best deals available. By taking a comprehensive look at your financial situation and the current market, a broker like ChangeMyMortgage can help you find a tailored mortgage solution that saves you time and money. Plus, with no fees and cashback offers, it’s an even more attractive option. So, when it’s time to remortgage, consider the advantages of using a mortgage broker to navigate the complexities and secure the best possible deal.
ChangeMyMortgage is the UK's first automated mortgage platform for existing mortgage holders, we've made the process a breeze. In just 15 minutes*, Our unique technology will provide a personal mortgage rate from your existing mortgage lender and also from the next best lender and recommend if it’s best to stay with your existing lender or move. We are at hand to provide free mortgage advice and also up to £500 in cashback, making the decision even sweeter.
You can begin your application here fill in a few details and the end of the 15 minutes* you will have a unique mortgage recommendation generated for you from your existing and next best lender.
*15 minutes is based on average completion time. Cashback is subject to completion of a mortgage through Changemymortgage.
