Getting a mortgage through a mortgage broker
There are several types of mortgage broker you can consult – it’s important to be aware of the differences between them in order to ensure you get the best possible advice.
From 1st June 2005, government regulations stipulated the following classes of mortgage broker:
Tied Brokers
Employed by one lender, this type of broker can offer only a limited choice of deals.
Multi-Tied Brokers
While multi-tied brokers can offer a more varied range of mortgages, they’re unlikely to offer the best mortgages on the market. This is because they choose to represent the lenders who offer them the best commission, rather than the most consumer-friendly packages.
Independent Brokers
The flexibility of being able to approach any lender, combined with years of experience in the industry, are the main reasons why independent brokers offer the best deals. They use specialised computer programs to scour the whole market range in order to find a mortgage which suits your needs – not theirs.
The Financial Services Authority has banned mortgage brokers from ‘cold calling’ people at home, so never respond to unsolicited calls offering mortgage advice. And always make sure that your mortgage broker is CEMAP, or MAQ qualified.
Contact the Financial Services Authority on 0845 606 1234 if you’re unsure about your broker’s credentials.
