Organizing our homes, mortgages and everything else can all seem a bit much at times; especially when we have a family and a full time job too. There’s so much legal jargon and one-off fees that sometimes we don’t know where we (or any of our finances for that matter) stand. For this reason, when dealing with mortgages and mortgage brokering, we should always consult the legal experts. This article will give you a beginner’s insight into mortgage brokers, and will show you exactly how they can help you.
Before going into depth in the details of mortgage brokering, it is essential that we understand exactly what it is that a mortgage broker does:
“A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses.”
Until recently, many banks and lending institutes sold their own products. This has been changing, though, and people like, Bob Hunt – chief executive of Paradigm Mortgage Services – are now expecting a mortgage brokering boom. At present in the UK, mortgage brokers are the largest sellers of mortgage products for lenders. This is due to the fact that the Funding for Lending schemes operated by the Bank of England have started to breathe some life back into the market. Meaning that mortgage rates have plunged, and lenders are beginning to compete again.
The majority of mortgage brokers are regulated to ensure that they are compliant with the banking and finance laws. In the UK, this consumer protection has been around for a number of years. Dating back to January 2000, when the Treasury announced it was going to bring in a statutory regime for regulating mortgages. As part of this, The Financial Services Authority (FSA) was in put in charge of implementing the detailed regime. The Mortgage Conduct of Business (MCOB) rules came into effect on October 31, 2004, signalling the end of the voluntary Mortgage Code, which had been in effect since July 1997 for lenders (and April 1998 for mortgage intermediaries).
Thanks to this detailed legal framework, you have a great deal of protection from the pitfalls of mortgage brokering, as long as you sign up for an accredited loan program. Companies such as www.themortgagebroker.co.uk offer highly competitive mortgage solutions selected from the 1,000’s of lender loan programs in their list of lenders. So, if you are unsure which firm or lending company is right for you, then visiting a site like The Mortgage Broker UK would be a good place to start.