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Mortgage Broker Expertise

December 26, 2009 in Property Investment by Kez

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:

  1. He does not speak only of a mortgage product (eg 5 year fixed), but several opportunities to handle the mortgage strategy.
  2. 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.
  3. 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 …
  4. 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.
  5. The broker tries to understand your situation and your goals.
  6. He shares with you ideas about how your mortgage may be repaid quickly.
  7. He is authorized by the Financial Services Authority (FSA)
  8. He works for a company that has a good volume of business
  9. He explains clearly and easily the concepts and ideas of more advanced mortgages
  10. 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.

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Mortgage Broker Integrity

December 26, 2009 in Property Finance by Kez

An important part choosing a mortgage broker is to ensure that the mortgage broker has integrity. [See: Choosing your mortgage broker]

Integrity in a person is defined as: “Good character, as a person of integrity, incorruptible, whose conduct and actions are beyond reproach.” A mortgage broker with integrity will put your interest before their own and the lender

If you have any doubts about your mortgage broker then keep looking for another mortgage broker. You must have confidence that the advice or recommendations he/ she gives you is good for you (not him/ her!)

Finding a mortgage broker with integrity

When you are searching for a mortgage broker and are in the selection process, the first step is to have a telephone conversation with the mortgage consultant and see if he/ she listens to you without saying exactly what you want to hear. (Example: Do not tell the broker that you are looking for “the best mortgage rates for 5-year fixed” but instead ask him/ her of their recommendations for a mortgage). Let him/ her speak and answer your questions. A good adviser will probably start by understanding your situation and your goals to be able to advise you properly.

More than a product or an interest rate

If your broker speaks instantly of an interest rate or product (5 years fixed, a line of credit mortgage or even a variable rate mortgage), he/ she is probably too focused on a quick transaction rather than a long term relationship. The biggest savings come from little things over the years. Your advisor should be able to give good advice to pay your mortgage more quickly (and save interest) without putting strain on your budget.

A good mortgage consultant will probably have several solutions (preferably with several lenders) custom made for you. The best mortgage consultants have even developed several strategies they use with mortgages to save money for their customers.

All these are signs of integrity to the profession – he/ she tries to save you money

A long-term relationship

Find a mortgage broker who has a management approach to your ongoing mortgage needs. Such a broker will contact you annually to review your situation, check your mortgage strategy and give you advice.

Advisors who want only a quick transaction are easy to find, but a good advisor who is in touch year after year are in a class of their own.

  • In summary, take time to find a mortgage broker who:
  • Does not look only for a fast mortgage product,
  • Does more than just shop for interest rates,
  • Has no conflict of interest with you

Helps you save money with a good mortgage strategy

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Choosing a Mortgage Broker

December 26, 2009 in Property Finance by Kez

Choosing your mortgage consultant?

The repayment of a mortgage is a “sport” of endurance. There are several strategies that can help you gain (paying less interest). A good mortgage consultant is an important asset who can help you get a good mortgage with a good mortgage strategy helping you year after year to pay off your mortgage faster without changing your standard of living.

Finding a good adviser does not have to be rocket science. It is like hiring an employee who works for you. If you plan to pay your mortgage in 15 years or 25 years, your mortgage professional will be there to help.

Here are some considerations that can help you find a good mortgage consultant.

Types of mortgage consultants

There are 2 main types of mortgage consultants who each have their strengths and weaknesses:

The representative of the bank branch offers products from a single lender, is responsible for several tasks including mortgages and is an employee with a possible annual bonus.

The mortgage broker: Offering products from several lenders, specializes in mortgages and works only on commission (paid by the lender) and some charge an additional one off fee.

Factors to consider when choosing a mortgage broker.

Choosing a mortgage broker is primarily a question of trust. There are 2 things that normally help us trust a professional:

  • Integrity Will the mortgage broker put my interests before his own and that of the lender? “The negotiation of a mortgage involves two parties who are opposed and whose interests diverge: the lender and the borrower. It is important that you are confident that the recommendations of your advisor reflect the best strategies and solutions for you.
  • Expertise: Does your mortgage broker have the ability to offer the best solutions? Your mortgage broker should be able to compare for you the various mortgage products and determine which is best for you.

The two components, integrity and expertise are necessary for trust. Here are two examples to explain this point:

A good used car salesman probably had the expertise to sell you a car, but will you trust him? It depends!

Even if your car salesman is the most honest man you know and works hard, does he the right knowledge and expertise to be able to select the best car deal for you?

Choosing

Trust is often a feeling that one has with a person. It is based on the fact that we think that this person demonstrates integrity and has some expertise. If you find the right person to be your mortgage broker, you will probably end up with a professional who will be able to advise you for many years.

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