Mortgage practices in UK
Mortgage brokers help you pick the right home loan from the
thousands on offer. Brokers can offer guidance on products from
a range of providers. They search the market for you and do all
the secretarial groundwork in setting up the loan.
Having pounds 20,000 for a pounds 160,000 home; you need a loan
of 120,000. If you are with a percentage broker they may end up
charging anything from pounds 400 to pounds 2500 for their
service.
Some brokers do not levy fees and earn from procreation fee from
the lender whose products they advocate and you buy from.
Many fee-charging brokers also receive commission and hence your
fees get rebated.
For special deals like self-certification, buy-to-let or
mortgages for people with poor credit records, the fee is more
as more endeavor is required.
Fee based brokers may seem appealing but they have their
critics. Commission brokers again can be your choice. Whether
you are offered the best product for your need or the product,
which offers them the best commission, is a question you need to
consider.
Some brokers work for a panel of lenders and hence you get
limited deals.
The best scenario for you would be to provide the lender with
all the information and they come back to you with different
options to choose from.