Many people go to their bank or building society to get a mortgage but this could be a big mistake.
If you take this route you will only have access to that provider’s limited range of deals. You may get lucky and find that lender is the cheapest but the chances are it won’t be.
Therefore, it’s crucial to search as many lenders’ offers as possible to give you the best chance of finding the right deal.
Try a broker
One of the simplest ways to do this is by using a broker who can plough through a vast array of mortgages to not only find you the cheapest deal but also advise on the one that is most suitable.
The latter point is important as searching for a home loan is a lot more than just about price.
The mortgage market is full of hidden criteria so you may not necessarily qualify for numerous deals.
For instance, some are only available to those with near-perfect credit histories, but this won’t be obvious from a best-buy table or leaflet in a branch.
Some banks and building societies may not lend on certain properties such as a new build home or a flat above a shop. Again, this may not be immediately obvious.
Other banks may only lend to those with one of their current accounts or may not lend in certain parts of the country. The list goes on.
Credit rating risk
Making an unnecessary application can harm your chances of eventually getting a home so it is important not to make that mistake by applying for the wrong deal.
This is because every application you make is recorded on your credit file and multiple applications in a short time can count against you.
Some mortgages are only available direct
Also consider that some lenders reserve their best deals for those who apply directly with that bank or building society.
Some brokers will advise you if such deals are appropriate. If so, you must make your application via the lender, not the broker.
