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Mortgage Insurance

Adviser vs bank: What’s the difference?

So you want a home loan.

Are you better to go straight to your bank, or to ask a mortgage adviser to help?

Here’s how working with a mortgage adviser can be different from dealing with a lender directly.

Market knowledge

When you deal directly with your bank, its staff can only advise you on what it offers, and how you fit in with its current lending appetite. 

But lenders are not all the same, and what isn’t a fit for one can still work with another.

If you have a mortgage adviser helping you, they have a more holistic view of the options available. 

They will have relationships with banks and non-bank lenders across the market, and know which might suit you, depending on your unique circumstances and goals. 
Sometimes, advisers might be able to recommend a lender that you hadn’t previously considered as an option.

One and done

When you deal with a mortgage adviser, you usually only have to fill out an application and provide all the required supporting information once. 

From there, the adviser can take that information to any lenders they need to talk to, to find you the right lending solution. You can get on with other things while they do the work for you. 

When you’re going directly to lenders and one says no, you then have to start the application process from scratch with another one.

Negotiation power

Advisers have a good idea of the interest rates and ‘specials’ being offered by lenders.
While it’s sometimes hard for individual buyers to know whether they are being offered the lowest rate available when they apply  with a lender directly, advisers may be able to negotiate these on a client’s behalf. 

Out-of-the-box thinking

If your situation is a little unusual, it can sometimes be hard to work out how to approach a lender about it yourself. If you hear “no”, you might not know where to turn.

But if you work with an adviser, they can help you to determine what you could do to make your application stronger, or what your options might be. They might be able to suggest non-bank lenders, who can sometimes provide solutions even when the mainstream banks can’t.

An adviser on your team

Buying a house can sometimes be a bit daunting, particularly for first-timers. Sometimes it can be hard to get in touch with a bank or lender’s staff when you need to. Having a mortgage adviser working with you means you have a professional on your side who can answer your questions as you go through the process. This may be why the number of loans going through mortgage advisers has increased such a lot in recent years. 

Let’s begin

We’re here and ready to help you get on your way towards your new home. If you’d like to see the benefits of mortgage advice first-hand, get in touch with us. The LifeDirect Mortgages team are home loan experts. 

 

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

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