Refinance Broker
Refinancing your home is a great way to raise funds for a variety of purposes.
From everyday home improvements to major renovations to significant one-off purchases, an affordable refinancing deal has limitless potential applications.
When you refinance your property, you will have the option of working directly with your current lender or talking to an independent broker. Both of these could open the door to a competitive deal, but there are important benefits to broker support that should be considered.
Should I use a mortgage broker to refinance?
Where a borrower has no intention of switching to a new lender, working with a broker may not be necessary. However, it’s important to remember that by limiting yourself to a single lender, you could be missing out on better offers available from other lenders.
By working with a broker, you gain access to whole-of-market comparisons, allowing them to find the best deal, secure lower interest rates, and access exclusive one-off offers that may not be available directly from lenders. Your broker can negotiate on your behalf to secure the best possible terms.
Comparing mortgage deals across competing lenders is best left to those who fully understand the complexities of the mortgage market and refinancing. While online mortgage comparison sites can provide a good overview of available options, they won’t offer personalised advice or help you choose the deal that best aligns with your goals and budget.
What role does a broker play when remortgaging?
The role of a broker is to navigate the complexities and challenges of securing a competitive refinancing deal on your behalf. Acting as an intermediary between you and the lenders they work with, brokers carefully match your requirements to the best deals that align with your priorities and budget. So, a somewhat “go between” you and the lenders.
Most importantly, a broker offers independent advice, ensuring you make informed decisions that protect your financial future. They will also handle the negotiation process, working thoroughly to secure the most favourable terms available.
Brokers often provide access to exclusive deals and discounted mortgage rates that aren’t available on the high street. Many independent lenders and refinancing specialists only work through established brokers, meaning you won’t find their products or services advertised elsewhere.
How do mortgage brokers make their money?
All brokers have their own individual approach to fee structures and payments.
Some brokers charge their customers a set fee or a commission based on the value of the property or the size of the loan taken out. In contrast, others exclusively charge the banks and lenders they work with rather than the borrower.
It is important to understand the broker’s fee structure ahead of time. Request clarification of any fees and charges you may be liable for, with assurances that they will not increase at any time under any circumstances.
Can I not just deal directly with a bank?
You can, but doing so could put you out of the running for some of the best deals on the market. When you work with one specific bank, you limit yourself to its own range of products and services. More importantly, any given bank or lender cannot provide honest and impartial advice.
It is highly unlikely that a bank or lender is going to tell you that you could get a better deal elsewhere, even if this is clearly the case.
Irrespective of how satisfied you are with your current bank, it is essential to find out whether you could be better off with a new deal from a different lender. This is something your broker can help you establish by providing you with the independent and objective advice you need to make the right decision.
If the best deal available is the deal on offer from your current bank, they will advise you to stay put. If it turns out that you could get a much better deal elsewhere, they will negotiate on your behalf.
What questions should I ask my broker before getting started?
Making sure you are working with a mortgage broker you trust is very important. Here are some questions you can ask to get started.
- What fees do you charge and when are they due?
- Are you fully qualified?
- How do you get paid?
- How long will it take to get approved?
- How do you keep me informed during the process?
By asking these questions, you can ensure you’re receiving the right advice and a mortgage deal that best suits your financial situation and future goals.
Book an obligation-free consultation
Before agreeing to work with a mortgage broker, it is advisable to arrange an obligation-free consultation to discuss the available options.
You should feel absolutely no pressure to go ahead and be given all the time you need to make up your mind.