According to Which?, around 60% of borrowers used a mortgage broker over the last five years. Of those who don’t, it’s usually for one of two reasons:
Either:
a. They prefer to deal with their current bank, believing that they’ll be more likely to get a good deal if they have a solid financial history with the lender, and it will be a simpler and smoother process.
Or:
b. They prefer to carry out their own research and go direct to a particular lender, often because they are suspicious of hidden charges and concerned that a broker might be biased towards certain lenders and products.
However, in Santander’s most recent Broker Perception Barometer survey, around three-quarters of respondents said that having a broker gives them greater confidence in their financial decisions, and almost 80% have saved money on their monthly payments by working with a broker.
So, what’s the reality about using a broker and what are the key differences between doing that and going direct yourself? Here’s what you need to know:
Brokers are experts and can guide you through your move
A good mortgage broker will provide a comprehensive service, which can be invaluable, particularly if you are a first-time buyer or are simply unfamiliar with the moving process.
In addition to helping you find the most appropriate mortgage, they can:
· Explain all the costs involved in financing and buying a property, to help you budget.
· Explain the financial and legal buying process so you know what to expect and when you will need to have things like deposit funds in place.
· Recommend complementary products, such as mortgage protection insurance and life insurance.
Your broker should also stay in touch, to alert you well in advance of your current deal coming to an end and make sure you are always on the most appropriate product for your circumstances.
Brokers can access certain deals you can’t get yourself
Mortgage brokers can access the vast majority of available mortgage deals across different lenders, giving you the broadest range of options. You should also be aware that some deals are ‘broker only’ – i.e. you can’t access them yourself.
A mortgage broker also has access to specialist sourcing software that searches the market far more thoroughly and quickly than most people can themselves. This not only saves you a significant amount of time but also helps ensure you don't miss suitable mortgage deals.
This is particularly important at the moment because mortgage deals are staying on the market for much shorter periods. According to Moneyfacts:
"The average shelf-life of a mortgage more than halved from 33 days to 14 days between the start of February and March 2026... This is its lowest shelf-life in over two years and just two days longer than the shortest on record (12 days in July 2023)."
When deals are disappearing so quickly, a broker's ability to identify suitable products and submit an application promptly can make the difference between securing a competitive rate and missing out altogether.
By contrast, if you approach a lender directly, even if they offer customer-exclusive rates, you'll only see that lender's products and could miss more competitive deals available elsewhere.
Using a broker often means a smoother application process and a quicker decision
Choosing the right mortgage is not all about the product interest rate and terms. Buying a property often has a certain amount of time pressure, and if it’s a home you’re trying to secure for yourself, it can be stressful waiting to find out whether your mortgage application has been approved.
This is where having a broker can make a big difference versus going direct:
· Brokers are familiar with the application process and can ensure all the correct information is provided so you don’t risk wasting time going back and forth with the lender.
· Brokers know who to contact and can often get information to move things along that you might struggle to get if you contact the lender yourself.
· Brokers understand the process and know exactly when to follow up and what questions to ask.
· Not all lenders are suitable for borrowers with more complex circumstances, e.g. if you are self-employed with a newer business or you have had credit issues in the past, and an experienced broker will know which lenders are more likely to accept your application first time around.
You may have to pay for a broker’s service
While brokers are generally paid commission by the lender (which they must disclose to you) some also charge customers a fee for their service. This might be fixed or calculated as a percentage of the loan.
However it’s important to know that most mortgage brokers don’t charge you to search for mortgage information, you are only typically charged when they apply for the mortgage you have chosen, when a formal offer is made by the lender or on completion of the property purchase or remortgage. And some mortgage brokers don’t charge at all, preferring to take commission from the bank or building society chosen.
While this can represent a cost, it needs to be balanced against the opportunity that using a broker could save many times more money on the mortgage. You’ll benefit from expert guidance and a professional service that should save you time and money overall. You’ll also have peace of mind that there is a mortgage specialist working on your behalf.
At Mortgage Scout, we can search more than 90 lenders and over 12,000 different mortgages to find the most suitable one for you and your personal circumstances. Importantly, you can be confident that we are working in your best interests.
To find out more and arrange a free, no-obligation appointment with us, just give us a call on 0800 144 4744 or fill out your details here and we’ll be in touch.
Additional sources: IMLA / Which
