Dropping interest rates and why you should use a mortgage broker

Barlow Irvin Financial Services Founder and Director, Gary Oxborough, takes us through why it’s wise to use a mortgage broker.

I’m sure you can’t help but have seen in the media that interest rates on offer from mortgage lenders have been reducing quite a bit recently. There are a few reasons for this, some quite technical about economic conditions and others simply due to lenders battling for a bigger share of the market. This is obviously good news if you are in the market for a new mortgage deal, either to buy a property or remortgaging your existing deal.

However, one issue that may have crossed your mind is “what if I apply for a new deal now, but rates continue to go down?”. Should you book a rate now or hold on in the hope that something better will come along soon?

We fully understand this quandary, and this is where using the services of a mortgage broker, like ourselves, can really help. If you apply for your mortgage directly to your bank, they will offer you the best deal they can at that point. Once that is secured, the application process will continue through and eventually move to completion. However, by using our service, you will still get the best deal on offer for you (from the whole market not just that lender) but that isn’t the end of our involvement. In addition to our normal application progression service, we regularly review your application to ensure that there isn’t a better deal you can move onto. We have already changed many clients’ mortgage deals during the application process, saving them potentially thousands of pounds in interest payments over the mortgage term. Of course, if rates started to increase again before your mortgage is completed, then you have a rate in place already, so you benefit both ways!

This is not something that will happen with an application submitted directly to the lender and not through a broker.

If you, or anyone you know are considering applying for a mortgage directly to your bank, consider if you would rather have someone in your corner, making sure you are still applying for the best deal available?

Please get in touch with Barlow Irvin Financial Services award-winning team for advice – it might be the best decision you make this year! 

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.