Lenders are reliant on Mortgage Brokers
Your Mortgage Expert explores why this is important to those looking to mortgage or remortgage a property this year.
According to the Iress Mortgage Efficiency Survey, increasingly UK lenders are reliant on Mortgage Brokers. In fact, they found that Mortgage Brokers are now used for 90% of applications which is up from 77.5% last year*. Adam Nanson, Impartial Mortgage Broker at Your Mortgage Expert comments on why this is important information for those looking to mortgage a property this year.
Why lenders are increasingly reliant on Mortgage Brokers?
“This survey shows us that more people than before are using Mortgage Brokers in order to mortgage their property. But, why are lenders reliant on brokers for applications? The Iress Report shows us a number of things:
“Lenders prefer to use Mortgage Brokers because it helps to speed up the process – it makes it more efficient. The report highlights that brokers often know lender systems well and this makes the application more efficient. This has been crucial during the pandemic when the application process has taken longer due to staff absences and additional checks**. With the report showing that the time to process a mortgage application can take up to 32 days on average depending on the lender.
“Additionally, lenders view mortgage brokers as a valuable line of defence for the risk process. Mortgage Brokers carry out a large number of checks prior to submitting applications. Which means that lenders feels de-risks applications to some extent.”
Why is this important for Home Owners and Buyers?
“So the report shows that increasingly lenders are reliant on Mortgage Brokers. Why should home owners and buyers care about this?
“Firstly, because if lenders rely on brokers, they will ultimately prefer to use them. This means they will increasingly set up their systems and products for applications via brokers. So – by using an impartial mortgage broker like Your Mortgage Expert – you will basically have access to a broader range of mortgage products. Many of which will not be available by going directly to your bank or via the high street lenders.
“Secondly, the report highlights that applications via a broker are more efficient and that brokers are familiar with lender systems. So, if you want to help speed up your application. Or you want to have guidance on how to package your application so it is more likely to suit lender guidelines or systems. Then a mortgage broker is the route for you.”
If you are considering purchasing a property this year, we would recommend you seek impartial mortgage advice. At Your Mortgage Expert, we understand how the mortgage market is currently working. What new information lenders are asking for as part of their new financial checks. We also understand what the current service levels are and how much longer your application is likely to take.
Searching the market yourself can be time-consuming. But with our help, we can search thousands of mortgages, including exclusive deals and lenders that you wouldn’t otherwise have access to. We have regular contact with a wide range of lenders, some of whom you may not even know exist! With our help, you won’t have to search or contact each individual lender in order to compare the mortgage terms and rates; we’ll do all that for you.
If you are interested in having a no obligation chat about your mortgage why not get in touch? We don’t charge anything up front, so by speaking to us, you are under no obligation. We are based in Salisbury, Wiltshire, but we can help you no matter where you live in the UK.
Simply call us on 01722 322683 or complete a contact us form on our website and tell us when it would be best to get back in touch with you.
The information contained within this article was correct at the time of publication. It is intended for information only and does not constitute advice. Your Mortgage Expert Ltd and Mortgage Advice Bureau cannot be held responsible for information that was correct at the time of publication but subsequently changes or goes out of date due to changes in legislation.