The Role of the Mortgage Broker

Approximately 40 per cent of all mortgages are still arranged directly with a mortgage lender rather than through a mortgage broker. This is astonishing. If you walk into a bank or building society and say 'I'd like a mortgage please' you will only be told about the mortgage products that are available through that bank or building society. They are certainly not going to say that another building society is offering a much better rate.

Approximately 150 mortgage providers compete for customers in the UK mortgage market. Most of these offer a variety of different types of mortgage schemes and this means that there are at least 1,500 different mortgage options to choose from. The chance of finding the mortgage that is best for you by walking into a bank or building society at random is at least 150 to one against.

Before you choose a mortgage, speak to a mortgage broker. A good one will look across the whole mortgage market and advise on which is best for you.

Finding a Mortgage Broker

Most mortgage brokers fall into one of four categories:

• Independent mortgage brokers - look in Yellow Pages under Mortgage Brokers.

• Independent financial advisers - look in Yellow Pages under Financial Advisers. Before making an appointment, check that the firm specialises in the mortgage market.

• Solicitors - some solicitors have a financial services division. Check that the person you see specialises in the mortgage market before you make an appointment.

• Estate agents - most estate agents have an in-house mortgage broker. It is not necessary to buy a house from an estate agent in order to use their mortgage broker. Most will be delighted to arrange a mortgage for you even if you are buying a house from one of their competitors.