How to Find a Good Mortgage Broker

Choosing a mortgage broker is a big decision, after all, they’ll be helping you on your journey to secure one of the largest financial commitments of your life and could potentially save you thousands.

But with so many mortgage brokers out there, how do you know which one to trust?

It’s true - working with a qualified mortgage broker can take the stress out of the mortgage process, saving you time, money, and hassle, all while ensuring you get the best mortgage deal that is tailored to you.

Typically, the best brokers are experienced, work with a wide range of lenders, and have a solid reputation that will be backed by a host of positive reviews. But understanding how brokers earn their fee, and what mortgage broker fees you can expect to see, will also help you make an informed decision.

In this short article, we’ll walk you through the key things to consider when choosing a mortgage broker. For an in-depth guide - be sure to check out our complete guide on how to choose a mortgage broker for even more detailed tips.

Are Mortgage Brokers Qualified and Experienced?

First things first - not all mortgage brokers are equal. With so many mortgage brokers out there, it is natural to conclude that you will see a variety of different claims of expertise and experience within the industry, and so the first thing to check is whether they’re actually qualified to give you advice.

In the UK, brokers must be authorised and regulated by the Financial Conduct Authority (FCA). This will ensure that the broker has to adhere to the industry standards set by the FCA and provide trustworthy guidance.

It’s easy to verify a broker’s credentials. Simply check the FCA register and ask about their experience in the industry. Many reputable brokers will also have case studies or testimonials from satisfied clients, which can give you further confidence in their expertise.

With that being said, qualifications alone aren’t enough - experience is equally just as important. An experienced broker will have extensive knowledge of the mortgage market, including the recent history of the market and most up-to-date information on the best mortgage products and rates of today. This is especially helpful if your circumstances are unique, such as being self-employed, having a less-than-perfect credit score, or in need of a specialist mortgage product.

A good broker will always take the time to understand your financial situation and specific goals. Primarily, the characteristics of a good mortgage broker will translate to a clear explanation of the mortgage options that are available to you, with recommendations and advice on how these options might look in the future.

Crucially, if a broker seems to rush through explanations, is overly pushy about a particular lender or deal, or does not take the time to understand your goals and requirements, consider their particular service a red flag.

Do They Work with a Variety of Lenders?

One of the biggest advantages of using a trusted whole-of-market mortgage broker is their ability to access multiple lenders.

Unlike banks, which only offer their own mortgage products, a whole-of-market broker will compare mortgage options from a variety of lenders in order to find the best deal for you.

However, it is important to note that not all brokers have access to the same range of lenders. The key term to pay attention to here is: “whole-of-market”.

Brokers who are not whole-of-market will only have access to a limited number of lenders. Whereas, whole-of-market brokers (as the name suggested) have access to a whole list of lenders and mortgage products that are currently on the market.

Simply, the more lenders a broker can work with, the better your chances of securing a competitive deal.

Another key feature and advantage of using a trusted whole-of-market broker is that they will sometimes have access to exclusive mortgage rates that aren’t available directly to borrowers. These deals can further help you save money over the lifetime of your mortgage.

Before you decide on which broker you should work with, enquire about their network of lenders and ask about their whole-of-market status to ensure you’re getting the best possible choice at securing the most competitive mortgage product.

Have You Checked Their Online Reviews?

If you were asked to buy a product online, you’d probably check out some customer and product reviews to make sure you’re purchasing something of quality, well - mortgage brokers are the same.

Before choosing a mortgage broker, make sure that you look at their online reviews. Feedback from real customers can provide valuable insights into a broker’s professionalism, their service as a whole, and crucially their ability to secure competitive mortgage deals.

Websites like Trustpilot, Google Reviews, and Feefo are great places to start. Look for brokers who are ranking highly with consistently good feedback about their responsiveness, efficiency, and service.

It goes without saying - a mortgage broker with a proven track record of happy clients is much more likely to provide a smooth, stress-free, and better all-round experience.

During your research, be on the lookout for multiple complaints. This could relate to poor communication, hidden mortgage broker fees, or slow processing times. These are all red flags and can be a clear insight into what you need to avoid.

A good broker should be upfront about their services and keep you informed at every stage of the process. If possible, ask friends, family, or colleagues for recommendations. A personal referral from someone you trust can be just as valuable as online reviews.

How Do Mortgage Brokers Earn Their Income, and What Costs Can I Expect?

A clear understanding of how mortgage brokers make money can provide you with an insight into how their services work and can help ensure you get a fair deal.

There are two types of brokers:

• Fee-based mortgage brokers
• Fee-free mortgage brokers

Some brokers choose to charge a mortgage broker fee to cover their expenses, while other mortgage brokers choose to charge the lenders commission.

In the UK, mortgage broker fees can vary widely. According to a study conducted by Boon Brokers, the average broker charge is usually between £300 and £600. However, fee-free brokers, such as Boon Brokers, provide their services without charging clients directly, and instead earn their income through commissions from lenders.

It is important to understand that spending does not always correlate to quality in the context of mortgage brokers. Instead, what is essential is finding a good and qualified mortgage broker who has experience of the industry and is ‘in the know’ when it comes to securing the most competitive mortgage rates and products. As such, it is always best practice to focus the overall value a broker can provide.

We always recommend asking a broker that you’re interested in to explain their fee structure before proceeding. A reputable broker will be fully transparent about any costs and ensure you understand how they are compensated.

Conclusion

Finding a good mortgage broker can make your entire home-buying journey much smoother.

When it comes to selecting your mortgage broker, ensure that you are working with a broker who:

• Is a qualified mortgage broker authorized by the FCA
• Has whole-of-market lender access,
• Has a strong reputation that is backed by positive reviews
• Is open and transparent about their fees

By taking the time to research and compare brokers, you can be sure that you’re getting expert advice and access to the best mortgage deals available.