With hundreds of products available, it is extremely difficult for homeowners to compare mortgage deals. Achieving the best mortgage deal helps families minimise monthly mortgage repayments. Is it better for a homeowner to visit local banks, use an online mortgage comparison service or use a mortgage broker?
Compare Mortgage Deals by Visiting High Street Banks
The majority of homeowners believe that they can achieve the best mortgage deal and reduce mortgage repayments by visiting local high street banks. This method of searching is not only inefficient, it is also impractical as local banks represent only a small fraction of total lenders.
The majority of banks are tied agents and only offer a very limited range of mortgage products. For example, Lloyds TSB mortgage brokers are only able to search through Cheltenham and Gloucester products. This means that homeowners will almost certainly pay higher mortgage repayments than would have been achieved through an online mortgage comparison service or mortgage broker.
Using an Online Mortgage Comparison Service
Whilst many homeowners are happy to compare mortgage deals by visiting local banks, an online mortgage comparison service is a cost-effective way of trawling the entire market from home. Unlike a mortgage broker, no charge is incurred as site owners make money directly from the lender.
It is possible to compare mortgage deals and reduce monthly mortgage repayments by using an online mortgage comparison service, such as moneysupermarket.com or charcol.co.uk. Always seek to use a completely independent service so that the entire mortgage market is thoroughly searched.
Can a Mortgage Broker Reduce Mortgage Repayments?
It is important that a homeowner uses an independent mortgage broker to maximise the range of mortgage products that are closely scrutinised. They compare mortgages across all lenders and use industry contacts to ensure homeowner reduce mortgage repayments.
Mortgage brokers do more than compare mortgages and reduce mortgage repayments, they carry-out any administrative chores and will negotiate with lenders. Unlike with an online mortgage comparison service, they charge up to 1 per cent of the loan value for their services.
A homeowner that wishes to reduce mortgage repayments should do more than simply visit local banks. They should, at the very least, use an online mortgage comparison service to track-down the best mortgage deals. First-time buyers, as well as those with adverse credit, are likely to achieve lower mortgage repayments by going through a mortgage broker.
Homeowners seeking to minimise mortgage repayments may wish to read about tracker mortgages, fixed-rate mortgages and discount rate mortgages.