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What is a mortgage broker?

20th January 2020

A mortgage broker helps to arrange a mortgage between a borrower and a lender. With access to the borrower’s key financial information, they’re able to advise on which mortgages are most appropriate. Drawing on networks of lenders, they aim to find the best mortgage deals for the needs of their clients and see them through to completion. 


Why use a mortgage broker?

There are several advantages to using a mortgage broker. Here are the main ones: 

  • Time – Searching for the best mortgage is time-consuming. It involves contacting numerous lenders, submitting reams of paperwork, and keeping track of lengthy processes. Using a mortgage lender cuts down on this – you submit all your financial information needed for a mortgage application in one go, discuss your preferences, and away they go. 
  • Access – Some lenders work exclusively with mortgage brokers, meaning that you wouldn’t normally have access to their offers. Apart from gaining access to exclusive lenders, a broker might also be able to negotiate better deals than you would do by yourself. Often they’ll have long-standing relationships with lenders, who will offer discounted rates to brokers that bring in the most business. 
  • Expertise – Good brokers will have an excellent grasp of the market. They’re able to give you a realistic idea of the mortgage you can expect and they can give indications on the best lenders to work with. Need a mortgage quickly? A broker will know the most efficient lender.


How to find a mortgage broker 

There are several things to consider when searching for a mortgage broker. Be sure to bear these points in mind: 

  • Are they whole-of-market? – Not all mortgage advisors scan the whole market for the best deals. Some work with specific lenders and will therefore only present you with a limited selection of mortgages. A whole-of-market advisor considers all available lenders, meaning that you have the best chance of securing the loan most suited to you. 
  • Do they include direct-only deals? – Some mortgages are only available to those that apply to a lender directly – these are called direct-only deals. As these essentially cut out the mortgage broker, they might be unwilling to tell you about them. Ask if the mortgage broker does include them and if not, just conduct some of your own research alongside the work of the broker. 
  • Are they registered with the FCA? – With mortgage fraud on the rise in the UK, it’s important to check that your potential mortgage broker is registered with the FCA.


How much does a mortgage broker cost? 

According to the Money Advice Service, the average cost for a mortgage broker is around £500. This figure varies between brokers and depends on what services they offer as well as how they charge. These are the main ways that brokers earn a fee:

  • Fixed Fee – Most independent mortgage brokers will charge a fixed fee at the start of the engagement. 
  • Hourly rate – Some brokers prefer to charge an hourly rate. They’ll track the time spent on finding you the best mortgage, and will invoice you once the engagement is complete. 
  • Percentage – Other mortgage brokers earn a commission percentage based on the size of mortgage negotiated. This percentage is agreed at the start, and generally won’t exceed 1% of the mortgage amount. 
  • No Fee – You may not have to pay any fee for the advice of a mortgage broker. This is because some brokers earn a commission from the lenders rather than the client.


If you’re currently searching for an expert mortgage advisor, get in contact with IMC Financial Services. With over 20 years of experience and an extensive network of lenders, our mortgage brokers will be able to find a mortgage deal to suit any circumstance – from buying your first property to adding to your property investment portfolio. 


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"Our mortgage adviser Andrew Francis is brilliant. When we first met him we were first time buyers with very limited knowledge about the process of buying a first home in the UK. However, Andrew guided us through the process with his vast knowledge and professionalism. We had to recently re- mortgage our flat, Andrew got in touch with us well in advance he presented us with the best options for us and made the whole procedure painless. Of course, we were a lot more relaxed this time around, as we already knew that we are in good hands. Thank you for your help, Andrew!"

Vyara Panayotova , Feb 2020

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"Always been impressed We've used IMC for over 10 years and have always been impressed with the service. They have helped to guide us through various financial issues we've had and we've been able to make better choices as a result. I wouldn't hesitate to use them again"

SusB , May 2020

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