Why You Should Use A Mortgage Broker

Whether you're a first-time buyer, moving home or remortgaging, having someone in your corner who knows the system inside out can be the difference between getting the mortgage you need and hitting a dead end.

Let’s break down why working with a broker is such a smart move. 

Why Is It a Good Idea to Use a Mortgage Broker?

Here are five prime reasons why going with a mortgage broker could be the best decision you make on your home-buying journey:

1. They open up the entire mortgage market to you. A whole-of-market broker doesn’t just work with one lender – they have access to all of them and their mortgage deals, including ones you won’t find by walking into your bank. Some mortgage deals are only available through brokers, so you’re more likely to find the most competitive rates and terms with them.

2. They're pros at handling complex stuff. Self-employed? Bad credit? Unusual property? Lenders can be picky, but brokers know which ones are more flexible. They’ll match you with the right lender based on what fits you best.

3. They save you time and energy. Trying to shop around yourself can be draining, and applying to lots of lenders can actually hurt your credit score. A broker does all the lender hunting, application submissions, and negotiating for you, so you can focus on the exciting bits (like planning your new home).

4. They make things way less stressful. Mortgages can be complicated. But a good broker will explain things in plain English, tell you exactly what’s needed, and chase things up on your behalf. They’re like your mortgage translator and cheerleader rolled into one.

5. You might save money in the long run. Sure, some brokers charge a fee (we do - and we’re upfront about what they are, so you’re never in the dark), but they can often find you a better deal than you’d get on your own. Even a small difference in interest rate could save you thousands over the life of your mortgage. That’s money back in your pocket.

What Does a Mortgage Broker Do?

In short, they do the heavy lifting. Here’s what your relationship with a mortgage broker should be about:

• Getting to know your situation. They’ll ask about your finances, homebuying goals, and anything else they need to understand your position.

• Finding the right mortgage. They’ll search the market to find lenders who are more likely to say yes – and who offer the mortgage deals that better suit your needs.

• Handling the paperwork. They’ll take care of the application, chase up documents, and deal with the lender on your behalf.

• Giving advice and support. They’ll answer your questions honestly, explain confusing terms, and help you feel confident about every step.

• Being in your corner until it’s done. Whether it’s your first mortgage or your fifth, they’ll be with you all the way to completion.

What Are the Pros and Cons?

Using a mortgage broker tends to work out well for most people, but it’s good to weigh up both sides.

Why They’re Great:

More choice: Access to a much wider pool of lenders and mortgage deals.

Less hassle: They handle the application process and act as your lender liaison. 

Expert advice: Especially helpful if your situation isn’t straightforward. 

Saves time: No need to trawl comparison sites or visit banks/building societies. 

Better chance: They know which lenders are more likely to approve you.

What to Watch Out For: 

• Most charge fees: The best mortgage brokers aren’t available for free (but they’re usually worth it)

• Not all mortgage brokers are equal: Some only work with a limited panel of lenders.

• Potential for bias: They may earn commission, but reputable brokers always put your needs first.

How Much Does a Mortgage Broker Charge?

Some mortgage brokers are completely free to use, but most will charge a fee. The amount will really depend on the broker and how complex your case is.

Here's what to expect:

• Fee-free brokers. These are paid by the lender when your mortgage goes through. You don’t pay anything upfront or later.

• Fixed fee. Some charge a flat fee (like us!), either upfront or on completion.

• Percentage fee. Others might charge a percentage of your mortgage amount, typically between 0.3% and 1%.
  

Make sure you ask up front. A good broker will always be transparent about what they charge and when, and that’s EXACTLY how we do it. 

Want to know how the fee structure works for Picnic and why we’re able to do what we do? No problem, you can find that out here: How It Works. 

What Questions Should You Ask a Mortgage Broker?

Before you choose a broker, ask them a few key questions to make sure they’re the right fit for you:

• Are you regulated by the FCA? This means they’re held to proper standards and must give honest, tailored advice.

  • Picnic Answer: As Picnic is a trading style of Haysto Ltd, who are appointed representatives of HL Partnerships Limited (HLP), we fall under HLP's registration and authorisation by the Financial Conduct Authority (Ref. No: 957422)

• Are you whole-of-market? If yes, they’re not tied to just a handful of lenders and have a much wider range of mortgage deal options available to discuss with you.

  • Picnic Answer: Yes, we’re whole-of-market, and we will use the whole market until we find a mortgage that fits your needs. 

• What fees do you charge, and when? Get clear on whether you’ll pay anything and what the total cost will be.

  • Picnic Answer: Yes, we do, but ONLY if/when we’ve secured your mortgage offer. It’s a flat fee of £599, and we ask for it to be paid within 48 hours of receiving your mortgage offer. 

• Do you have experience with cases like mine? If you’re self-employed, have bad credit, or something else unusual, ask if they’ve helped others like you.

  • Picnic Answer: Our elder sister brand, Haysto, is regarded as the no.1 specialist mortgage broker in the U.K., and has made mortgages possible for thousands of people who had been told ‘no’ elsewhere. So, don’t worry! Whatever the circumstances, we’ve got all the bases covered and you’re in the best hands. 

• How do you communicate? Will they call, email, text, or offer an online portal? Choose what works best for you.

  • Picnic Answer: Our main method of communication is through our industry-leading customer portal, known as Haya. Our customers tend to love how easy it is to get in touch with us through the portal and keep up to date with how their mortgage is progressing. But all preferred modes of communication are usually available. 

• What happens if my application is rejected? A good broker will have a backup plan and keep you updated throughout.

  • Picnic Answer: The best backup plan we have is to make sure we find you the right lender, the first time! Sometimes this might mean being honest about your chances and delaying an application until the time is right. But if a rejection is received, don’t panic! We don’t give up that easily. We’ll find out exactly why this has happened and work with you on what’s needed to make sure we don’t miss the next time.