Broker or Bank?
Apparently over 65% of us use a mortgage broker over a bank to secure funds for our property purchases. Apart from the choice and the better customer experience what does a broker offer? A brokers job is to set you up with the right finance for you. The banks job is to sell you their finance packages. Therefore the broker has more of your interests at heart. They can also offer a wide range of packages for you to choose from and offer advice and help you decide what you can afford.
A broker also has lower operating costs than a bank, so they can afford to offer a better rate of interest. They generally don’t have legions of staff, and other departments depending on their bottom line so operations are simpler, and therefore cheaper.
A broker is a specialist. They depend on their specific skills and experience in their field. They are generally much more qualified and knowledgeable about their chosen profession than a bank employee who will have to know several products.
Brokers generally have fixed contracts with their finance providers which will fix interest rates for longer than banks. Banks try to remain as fluid as possible and alter their products depending on supply and demand. This can vary the rate you receive greatly and can lead to uncertainty about the rate you actually receive.
These are all advantages of using a broker. There is nothing wrong with sourcing finance from a bank, but you should be aware that it isn’t your only option when trying to raise capital.
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