What Does A Mortgage Broker Do?

Hello and welcome back to the mortgage and protection podcast and this time we have Sophia Jones joining us from Properties to talk all about the role of a mortgage broker. It's lovely to chat with you Sophia. How are you today? Yeah, very well. Thank you. Thank you for having me. Oh, that's good and you're welcome. So we've got some questions here that we're going to run through. So let's get straight into them. So first of all, and for those that aren't really aware, what does a mortgage broker do? So as a mortgage broker or a mortgage advisor, we essentially sit between our clients, those looking to be financial by property, and then also the mortgage lenders. So what that means is in the application process, first of all, we speak for client, we'd understand what

it is they're looking to do and why they're looking to do it. Because often some people have got an idea of what they're looking at doing, they're not sure if that's actually the right idea and the way to go forward with it. Then once we've ascertained that, we'll look and we're going to tell them how much they can afford on a mortgage with different lenders because that can vary from one lender to another, sometimes quite widely, especially recently over the last kind of year or so. We would then provide details on the monthly costs of that mortgage and then the overall costs of the mortgage. So instead of just focusing on an interest rate, we would look at the interest rate plus any fees and make

sure that's the best solution for that client. Once we know what the right solution is, we would collect and check all of the documents that are needed for a mortgage before it goes into a lender. So if somebody goes direct, it's a slightly different process and you haven't got somebody checking that stuff before it goes in to make sure it's all full and it's going to be as smooth as possible. Once that's happened and we're ready to apply, we then do apply to the lender and we handle the whole application process. So that means that we do all the paperwork and we answer any questions that the lender's got about the application and the applicant themselves. Then really one of the most important things

is that we continuously have our eye on the ball with the market, especially recently where things have changed so frequently. Even once we've got that mortgage offer, either if there are any changes in the market that would positively affect the clients or let them know there's a better rate and then we can apply for it after we've got the original mortgage offer. Right. Okay. Well, there we go. Thank you for that. A really clear breakdown there. And with all that in mind, the next question follows on. What is the difference between going to a mortgage broker or a mortgage advisor like yourself versus your local high street lender? I mean, there are quite a few differences between going to an independent advisor versus

going to maybe a high street bank or the bank that you bank with, which is what most clients tend to do if they are going to go direct. But I mean, buying a property or refinancing a property is huge. It's one of the biggest financial transactions that somebody is going to make in their lifetime. And having an advisor working alongside you can be invaluable. We help with all of the solicitors, we help with the estate agents and anybody else involved in that process. I mean, I've often picked up the phone at a bit of an ungodly hour to a client who stressed having been told something by somebody else in the chain and then fixed it, put their mind at rest and a high street bank certainly wouldn't do this. We would get you a yes, potentially, when a bank would

give you a no. And the reason for this is one of the main reasons for this would be when you go to your high street bank, you're only going to get advice from that one bank on them and their products. So because we can advise on all of the lenders that we work with in the market, we can do just that. So I've had clients that have been recommended to me from others believing that they couldn't get a mortgage for whatever reason, maybe credit issues. So let's say if you've got a CCJ or missed payment, there are some lenders that you'd go to that would just decline you. So we couldn't go to that lender they banked with, which is the one they'd approached, but because it didn't meet their criteria. But we can go to another

lender. So if you approach your high street bank as an individual, and you don't meet their criteria, they're just going to refuse you. And they're not going to be able to advise you because they can't to go to another bank. So as a broker, we know the difference in the criteria for all the different lenders. And so I can advise clients where's best to go based on them and their individual circumstances. Okay, so really, it's a tailor made service to the individual then in that case? Yeah, yeah, tailor made financially and kind of hand holding as well, which is a bit that I like. Okay, well, let's go into a little bit more detail then. And you probably touched on some of this in your sort of introduction there. But what services

does a mortgage broker offer? I mean, it really is a full process, isn't it? Yeah, so all of the stuff we went through in the introduction there in terms of paperwork and application, but then it's all of that stuff around purchasing or refinancing property. So when you're purchasing, you've got a state agents to deal with. And then when you're purchasing all your refinancing, you've got solicitors doing the legal work. So it's liaising with everybody else who's involved in that process or in that chain, if you're buying, and just making sure people have got the right information and wires aren't crossed. As part of the application process, you've got a couple of stages. So many people will have heard

about the agreement in principle, which depending on which to say agent or with and what kind of evidence they need that you can buy, some will insist that you've got an agreement in principle prior to you putting or having a mortgage, an offer accepted on the property to buy it. So yes, that can be the case. And that can be the best thing to do sometimes. But actually, sometimes that means a hard credit search with some lenders. So we can do financial qualification to the estate agent on behalf of our client, which means that they don't necessarily need an agreement in principle always, if it's not best for them. So those in terms of buying property and then remorgraging, if you're coming to the end of your rate, we can look at the whole market,

opposed to just the lender that you're with at the moment, and make sure that you're on the right deal, or you can get better somewhere else. There we go. So yes, lots involved there. And have we mentioned mortgage protection? Can you advise on that as well? Yes, yeah, we can. And it's important to have that built into your monthly budget when you're looking at buying, or when you're refinancing, if you're maybe upping the loan, or the debt that you've got, you need to make sure that's protected for you and your family. So we work with the insurers to make sure that you're covered and that the cover you've got meets your needs. Okay. Now, again, with all that in mind, when should someone come and see you? When should I see a mortgage broker? So at

what stage in that process? It's a question that I get quite a lot actually. Really, I'd say as early as possible. I mean, I speak to clients at all stages of the process. So I've spoken to them when they're just saving for deposits. And I can give them guidance as to what they need to do when they have got the deposit saved up and how much they're really aiming for. Because if you look online or Google or speak to somebody down the pub or a friend, if the amount of information is overwhelming, it's knowing how much you need for a deposit. And then also, what does that then look like when you buy a house? What does your budget need to be? Are you aiming for the right thing? So as early as possible, really, I also then speak to clients much,

much later in the process where they've been to another advisor, and for one reason or another want a second opinion. So really any stage, but as early as possible. Okay, I suppose preparation is key, isn't it? The earlier that you start to look into all of that, the more prepared you are further down the line. So yeah, preparation is key there. Absolutely, and for Samity as well. Yes. You can get to the workspace thinking about what you can afford and money. And if you've got somebody there saying this is what you need to do, it's very nice, I think. Yeah, that's very, very true. Peace of mind. Hopefully that sounds reassuring as well to anybody listening to this. Now, of course, it can be very daunting, can't it

picking up the phone for the first time, especially if you're a first time buyer, or maybe you're a home mover, you know, and you're moving way down the line 10 years later, and you've kind of forgotten how that process works. So, I mean, does it cost for an initial consultation with you? Right, there are no fees initially. So I'm not going to charge you if I can't help you. That's not why I'm in the industry whatsoever. And that goes to kind of first time buyers or like you just said, if you own property, I speak to many landlords, especially now in the market that we're in, just need some advice on what to do. So I'll look and see, give them initial consultation, see where they are, make sure that I can help and give them an

idea of what we could do to help and if we can help. There are fees that are charged later in the process, but they do vary depending on the work. So these are all just made very, very clear before anybody decides to proceed. Right, okay, there we go. And just to confirm, we are recording this episode in March 2024. Now, we've covered quite a bit there. But have you got anything else you'd like to add at all? I don't think so. I think we've covered quite a lot. All I'd say is if anybody's got any questions off the back of this, there really is no such thing as a silly question. I can sit and talk about property or farming to clients all day long. So no matter where they are in the process, there's usually something that I can

help with. Okay, well, again, hopefully that sounds reassuring there. And hopefully, we've helped a few people out on the episode. Thank you for that. Sophia, that's been brilliant. Perhaps we'll speak to you again on the podcast soon. Who knows, but you take care. Thank you very much. Please note your home may be repossessed if you do not keep up with your mortgage repayments.