Mortgage Broker Manchester
Mortgage Broker Manchester
If you’re looking for a Mortgage Broker in Manchester then you’re in the right place. If you’d like to learn a bit more about Mortgage Brokers before deciding who to contact then this guide is a great place to start.
List of Mortgage Brokers in Manchester
Jamie Thompson Mortgages – First time buyer specialist*
First Mortgage – moving home, remortgage, buy-to-let, new build
Manchester Money Man – moving home, remortgage, buy-to-let, new build, right to buy,
Manchester Mortgages – remortgage, moving house, nurses, bad credit, equity release
Jackson Potter – moving home, remortgage, buy-to-let, international, ex-pats
Search Mortgage Solutions – moving home, remortgage, buy-to-let, debt-con, bad credit
These are just a selection. There are many more available from nationwide companies with call centres and hundreds of staff, to independent one person businesses.
* includes employed & self employed and including schemes such as help-to-buy equity loan
Why have I just listed my Mortgage Broker competitors?
As well as home buyers wanting the right broker, Mortgage Brokers want the right clients for them. Just to be clear, I specialise in First Time Buyer Mortgages in Manchester!
If you’re trying to do a limited company buy to let mortgage, HMO, get a mortgage with (really) bad credit, ex-pat mortgage, or something else weird, then you’re best off speaking to somebody who specialises in that area.
What does a Mortgage Broker do?
Ultimately a Mortgage Broker’s job is to find their client the most suitable mortgage by giving great mortgage advice.
Notice that I didn’t say ‘find the best mortgage deal.’ That’s because there is no best mortgage. However there is a most suitable mortgage though. That’s usually going to be the cheapest mortgage that you qualify for and meets your needs. They do this by considering a lot more than just the interest rates available, though this is a large factor.
They will also take into account other things that might be important to you, like being able to overpay, or underpay, or avoiding lenders with notoriously long wait times.
Unsurprisingly, different people qualify for different mortgages. What mortgages you qualify for will depend on many things, including:
- Your income
- Employment status
- Credit score
- Your age
- The property you are trying to buy
- This list could go on for a long time
A Mortgage Broker saves you time and money by getting the right mortgage first time around. This is one reason why around 70% of mortgage are arranged by brokers. Having a mortgage application rejected could lead to you losing the property you want to buy. Don’t become one of the 41% of young home owners that have a mortgage application rejected.
Additionally, a good Mortgage Broker will take on the responsibility of pushing your case from application to getting a formal mortgage offer. They do this by using their dedicated contacts at the lenders.
Your Mortgage Broker should be regulated by the Financial Conduct Authority and covered under the Financial Services Compensation Scheme.
How to choose a Mortgage Broker in Manchester?
Just like Lawyers specialise in one part of the law, Doctors on one part of the body, or Pilots on one type of aircraft, top Mortgage Brokers specialise in one type of client. Make sure your broker specialises in you! Remember, I specialise in First Time Buyer Mortgages in Manchester!
Mortgage Brokers can be employees of big companies, right the way to business owners who work by themselves. When choosing which you would prefer, think about what type of company you prefer to work with for similar things, and what your experiences have been.
You may not be able to contact an advisor after 5pm if they work for a big company. Consider if things like this are important to you. However an independent local broker might not have as many reviews on Google. How important is that to you?
Consider if you want to meet your broker; physically, or via Zoom, or if you are happy to do everything over phone and email. I prefer to see the people I’m dealing with when it comes to recommending a large commitment like a mortgage as I can then see if they are comfortable with the details of the mortgage.
Most importantly, pick somebody you are going to enjoy working with and you trust! Are they confident enough of their services to put their face on their website, or is it just a logo and phone number so you don’t know who will actually take your call? These days I only use tradespeople who are confident enough to post pictures of the work they’ve done on social media!
Here’s some answers to questions you might have about getting your first mortgage in Manchester.
How much do Mortgage Brokers charge?
Mortgage Brokers can charge nothing, a set amount, or a percentage of your mortgage amount. If you’re looking for a fee-free Mortgage Broker in Manchester there are several to choose from, including myself (most of the time). Unfortunately it’s not uncommon though to see broker fees of around £500 for even the most basic cases. If the company has offices, fancy advertising, or an estate agent introducer fee to pay for, ultimately that cost gets passed on to the client.
However, you might be wise not to choose your advisor solely on cost. For example, if you have a history of bad credit, are trying to buy an unusual property, or have very complex income, your best option may be to go to somebody who specialises in that scenario. In the end, if it helps you get the home you want any fee will feel insignificant.
Brokers have to be open about their fees. Some will charge right at the beginning before doing any research. Some charge on application (some will refund if the application is rejected), some charge on receiving an offer, and some charge when the mortgage completes. And of course many don’t charge at all.
On the few cases I do charge a fee it’s usually paid at application with a guarantee that it will be refunded if the mortgage doesn’t go ahead.
Don’t worry about asking your advisor about fees. They will be able to answer your question and make it clear what you should expect.
Read more on why I choose to be a fee free Mortgage Broker in Manchester for the majority of cases.
How do Mortgage Brokers get paid?
You might be wondering how a Mortgage Broker can help you for free. Regardless of what lender your Mortgage Broker advises you to go with they will receive a fee from the lender. The amount usually depends on the size of the mortgage, and the amount varies slightly from lender to lender.
Your broker should go through a mortgage illustration with you before you apply. This is a standardised description of the mortgage. In section 2 it will tell you exactly how much the lender will pay the broker or their company.
Remember, they will receive this regardless of whether you are being charged a broker fee or not. It is not an either or and does not affect the terms of the mortgage.
Is it best to use a Mortgage Broker local to Manchester?
No. Your Mortgage Broker does not need to be local to you in Manchester, or anywhere in the country really. These days they can do all the work remotely. Most of my clients tend to be in Manchester, Bolton, Stockport, and the surrounding areas though.
You may find that it can be useful to use a local broker when it comes to certain properties. There are some houses in Cornwall made out of a material that lots of lenders won’t issue mortgages for. But I bet an advisor local to that area can sort it with their eyes closed.
One thing to watch out for in Manchester is the high number of leasehold properties. Some lenders have extra rules for these. The same applies for flats in tall buildings. The broker in Cornwall might not be as used to getting mortgages for flats in tall buildings!
What’s the difference between a Mortgage Broker and a Mortgage Advisor?
There isn’t one, really.
Some people will say that a Mortgage Advisor works at a bank and can only arrange one lender’s mortgages, whereas a Mortgage Broker is independent and has access to multiple lenders. However in reality it comes down to what an individual wants to call themselves.
I call myself a Mortgage Advisor as I think that better sums up my job, I’m there to advise. Broker sounds too salesy for me.
I guess it stems from the fact I value being advised, I’ve never enjoyed being brokered. If that’s even a thing? Most people seem to say Broker though.
You might see the term Independent Mortgage Advisor around. Here’s an explanation of what that actually means.
Do I need a Mortgage Broker?
No. It’s not a requirement to use a Mortgage Broker. The reason people choose to use brokers due to the service and value they provide.
Watch out for estate agents and developers saying that you must, or should, use a certain broker. Conditional selling is not allowed. This is a big red flag as it usually means they are getting a fee for recommending you. I wouldn’t want my mortgage advisor, who knows exactly what I can afford to borrow, sitting in the same office as the person I’m negotiating the purchase price with!
People don’t use brokers because they have to, but because they want to.
There are a few lenders who are only accessible via a broker.
Why use a Mortgage Broker?
Having a Mortgage Broker on your side can relieve a lot of stress. They do something that you would do a few times in your life, (and maybe you’re doing it for the first time ever) every day.
Different lenders have very different criteria when assessing you for a mortgage. This is why you hear people saying they got turned away by their own bank even though they’ve been with them since they were sixteen. It’s a brokers job to make sure you only apply at the mortgage lenders that you actually qualify with.
They will give you options that you didn’t know you had. A great example is the number of people that think if they take out a 35 year mortgage they are stuck with it for that entire time. In reality you could go with a lender allowing overpayments without a penalty. This is great for people wanting to keep a low payment in the first year after buying a house, but increase afterwards.
Mortgage Brokers are trained professionals in a highly regulated industry and must demonstrate why their advice is the best outcome for you. They represent you not the lender and they must be open about what commission they receive from the lender, and about any fees, if any, they will charge you.