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Mortgage Lenders

The mortgage markets have many different types of lenders that will offer their services and help you find the right mortgage for your needs. When people buy their new property often the estate agency will have an appointed mortgage advisor that they recommend and many people will take up this option, it however always pays to look around and make sure you choose a suitable provider. For a lot of people the first point of contact will be with the banks to arrange the funding for their mortgage, many people choose to use the bank that they are with for their other financial accounts such as the current account or savings accounts. The mortgage products that banks have available are varied and will often vary in flexibility and mortgage interest rates. Banks will broker a deal for a whole range of mortgages from the standard fixed rate mortgage, variable rate and tracker mortgages to the more recent and popular one account mortgages. It is very easy to find the different mortgages, rates of interest and terms and conditions of the banks services by either going into a local branch or checking the individual websites.

Using a Bank as Your Mortgage Lender
When you use a bank as your lender you will likely talk to an in house broker these are known as loan officers. The bank will employ and train the loan officer to understand all of their products and services in order that they can offer you the best mortgage for your requirements. Most of the banks will offer a very wide and varied number of packages to cater for a large number of requests. When you talk to a specific bank you will be offered in house mortgage products only, it pays to make sure that you shop around to find the best deal and talk to many different banks. All of the major banks now offer mortgages and you can find all the information from the current mortgage rates and the additional charges on the bank websites.

Internet Lenders
It is now possible to arrange your mortgage through the internet and many of the lenders allow you to process an entire application through their websites. There are specialist financial service providers who offer an alternative option to the high street banks and building societies. The same regulations apply and the companies must be fully accredited to offer the mortgages and you can often find the best mortgage rates by looking on the company websites. Before you are offered any final mortgage you will still need to undergo the financial checks, credit checks and provide your financial information so they can make an informed decision.

Mortgage Broker to find a Lender
The other very common way to get the best deal for your mortgage is to instruct a mortgage broker. These are property specialists that act as a go between for the consumer while the mortgage is being setup. There are many types of brokers that can be instructed and these are tied brokers, multi tied brokers and independent mortgage brokers. A tied broker is exactly as you would expect and is affiliated with just one lender, in general it is likely that they are employed by the lender that they represent and will only offer mortgages that the lender provides. It is often thought to be not a good idea to get a mortgage from a tied broker as the product range will be limited and you will not be able to see a wide and varied range of mortgages. A multi tied broker would be considered as the next level up from a tied broker, you will be getting a more varied selection of products from different lenders. The drawback again with this is the broker will often select the products that best suite them, this could be in respect of the amount of commission that they will be receiving on the sale. It has become a much more common practice for many banks and financial institutions to now become a multi tied mortgage broker. The final type is the independent mortgage broker, these are the most likely to enable you to get the best deal for your mortgage. Generally an independent will have a considerable amount of experience within the property sector and arranging mortgages. Many will have worked for some of the larger financial institutions and then made the split and became established in their own right. They will not show any biased towards a particular lender and you are much more likely to receive a mortgage that suites you and is tailored to your exact needs.

Regulation for Mortgage Lenders
With this sector being so diverse and the number of mortgage lenders increasing over the years the financial services authority made it compulsory for anyone selling mortgages to be qualified in the field. The compulsory examination that all mortgage providers need to have passed is the CEMAP which is accredited by the QCA (Qualifications and Curriculum Authority). The FSA are a government body that have been setup to regulate the industry and the UK mortgage sector is now very well controlled and this in turn will provide the consumer with additional confidence when arranging mortgages. The FSA has brought in a number of initiatives which have helped to improve the market; these include clear information on the different types of mortgages which allows the buyer to clearly identify the difference between the products. Clearer advertising of the prices of arranging the mortgages and any advice given by a lender must be based solely on the needs and circumstances of the consumer and not on the commission.

All of the information above provides the buyer with questions that should be addressed before you find the best lender. The most important points are to ensure that the lender has the correct qualifications; they are a member of the governing body and have a good history of providing mortgages that suite the buyers needs. There are hundreds of lenders including banks and building societies that can be used to finance your property and a good one will be able to source the best deal for you. A mortgage is the biggest financial commitment that many people will make in their lives and bad advice at this stage could cost you thousands of pounds in the long term. Do not be afraid to ask questions and if you do not get the answers that satisfy you then shop around and look for another lender.

 

 

 
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