Mortgage Market Update

Traditionally a mortgage broker was probably the most effective way to access the best mortgage deals available. True, there were a few lenders, e.g. HSBC, who only dealt direct, but mortgage brokers still gave the most comprehensive access to the mortgage market. Additionally, the Investwise policy of both researching the market and making clients aware of any direct deals to pursue, aimed to give the best of both worlds.

Following the recent financial crisis, mortgages became more difficult to secure, lenders became more selective and the whole process became more complex, forcing more borrowers to turn to price comparison sites, independent financial advisers and mortgage brokers.  In response and to attract more general business, banks introduced mortgages with lower interest rates to certain types of client if they apply directly in branch.

These direct mortgages are usually targeted to attract business from selected borrower types, e.g. employed borrows with significant cash deposits.  or those most likely to be attracted to other accounts or products offered by the lender. They may be a route to a lower cost mortgage, but there are important considerations:

  • Considerable time and effort will be involved finding an applying for these direct deals.
  • Progressing a completed application via some bank service centres can be frustrating indeed – moving can be stressful enough without this.
  • The whole process takes time – weeks – to secure an offer; or a refusal.
  • You have no way of knowing in advance if you are in one of the target groups and a surprise refusal will mean applying all over again with another potential lender.
  • It is unlikely that the important mortgage related insurance products will be the most competitive, so you may still need advice.

Even when successful, you may not have secured the best deal around and arguably it can be far more efficient to have an independent financial adviser apply your behalf. 

The Investwise approach has considerable advantages:

  • As fee based independent financial advisers, we will always include appropriate lender direct deals in our recommendations.
  • We also have access to negotiated exclusive deals, not available at Bank branches.
  • We have access to the lenders criteria prior to your application, so check to ensure you fit the lenders target client group for direct deals.
  • Where you apply through us, we progress the application for you through to a formal mortgage offer.
  • Any mortgage related products will be researched independently of any lender.

We believe that our approach is even more relevant in today’s complex market and provides a most valuable service to borrowers.

The information provided does not constitute advice. You should contact us to arrange a financial review should you require any further information.

12/04/2011.