by Aspect County

Why use a mortgage broker?

Utilizing a mortgage broker can offer several advantages when seeking a home loan. A mortgage broker has access to a broad network of lenders, including banks, credit unions, and private lenders. This allows them to offer clients a variety of mortgage options, increasing the chances of finding a loan that suits their specific needs.

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When choosing a mortgage broker/advisers it is important to choose one that has experience in the field. And to ensure that they are qualified, someone who fits the bill adequately will be an invaluable asset in providing expert advice on different types of mortgages, interest rates and repayment terms. 

Searching for the right mortgage can be time-consuming and overwhelming. Using a trusted mortgage broker will streamline this process by handling the research, paperwork, and negotiations on your behalf, saving you valuable time and effort.

A good broker will work closely with you to understand your financial situations, goals, and preferences. This personalized approach will allow you to receive bespoke recommendations and find mortgage solutions that align with your unique needs.

When should you start the process of remortgaging your current deal?
For those on a fixed-rate mortgage or an initial discounted deal, it’s advisable to start exploring remortgaging options approximately six months before the deal expires. This timeframe allows for a thorough examination of new offers and ensures a seamless transition without lapses in mortgage coverage.

Should a client’s financial situation improve since taking out a mortgage, such as an increase in income or a boost in their credit score, they may become eligible for better mortgage deals. Reviewing a mortgage in such cases could lead to more favourable terms.

Keeping a close eye on overall interest rate and market trends is advisable, and brokers are at the forefront of this. Adapting a mortgage to a client’s evolving circumstances can help manage finances more effectively.

Is it important to have life, critical illness and income protection with your mortgage?
The decision to have life insurance, critical illness cover, and income protection with a mortgage depends on an individual’s circumstances, financial goals, and risk tolerance. Each type of insurance provides different forms of financial protection, and having a combination of these policies can offer comprehensive coverage.

Life Insurance: Life insurance is crucial if a client has dependents who rely on their income. It provides a lump sum payout to beneficiaries in the event of their death, helping them cover living expenses, including the mortgage. 

Critical Illness Cover: Critical illness cover pays out a lump sum if diagnosed with a serious illness covered by the policy. This can help cover medical expenses, lifestyle adjustments, and mortgage payments during a challenging period.

Income Protection Insurance: Income protection insurance replaces a portion of income if a person is unable to work due to illness or injury. This can help meet ongoing financial commitments, including mortgage payments.

Combining life insurance, critical illness cover, and income protection offers a more comprehensive safety net, addressing various financial risks. I work with clients to assess their specific needs and priorities. 

Does being self-employed vs being employed make a difference when applying for a mortgage?
Employed individuals generally have a regular, verifiable income stream. Lenders often request recent payslips and employment verification to assess stability and the ability to meet mortgage payments. 

On the other hand, self-employed individuals may experience variable income and cash flow, which can make it more challenging to demonstrate a stable financial picture. Lenders may scrutinize income history and projections more closely. Self-employed applicants typically need to provide additional documentation. Consulting with an accountant or financial advisor can help optimize financial records and provide guidance on presenting the business in the best light to lenders.