A mortgage broker with the right expertise is an important factor that should be considered when choosing a mortgage broker [See: Choosing a mortgage broker]
Over the years, many mortgage lenders have added or changed dozens of mortgage products. There are hundreds of mortgage products available for borrowers and trying to choose the right mortgage product can be daunting. Choosing mortgages is a full time job. It requires the mortgage broker to know all the options, products and strategies in the mortgage market today.
Some signs of an expert mortgage broker
When you contact a mortgage broker, look for signs to determine how knowledgeable the broker is likely to be. Pay particular attention to the following:
- He does not speak only of a mortgage product (eg 5 year fixed), but several opportunities to handle the mortgage strategy.
- He knows the factors that influence the rise and fall of interest rates and can explain clearly the current situation in the cycle of interest rates.
- He knows all the products offered by all lenders in the market and can easily compare. As an example, the best variable rate of 5 years is with the lender XYZ because … while the best mortgage line of credit is offered by ZYX because …
- He is able to compare the best rates available for each lender and at the same time you can select one with the best offer.
- The broker tries to understand your situation and your goals.
- He shares with you ideas about how your mortgage may be repaid quickly.
- He is authorized by the Financial Services Authority (FSA)
- He works for a company that has a good volume of business
- He explains clearly and easily the concepts and ideas of more advanced mortgages
- A new trend in the mortgage market is to see more and more mortgage brokers who specialize in a certain market area.
There are specialists for:
- Mortgage customers who have a good credit score.
- Bad credit mortgage clients with less than perfect credit history.
- Mortgages for construction.
- Mortgages for residential property buyers
- Buy to let mortgage specialists
- Commercial mortgage specialists
The fact that some consultants specialize enables them to better understand the nuances and details of specific mortgages and can better understand a strategy and products available in that specific mortgage market.
The expertise of your mortgage consultant will be a big benefit for your property purchasing strategy and could help you save thousands of pounds.