Can a Mortgage Broker Get You a Better Deal?

The recent rises in the Bank Of England base rate have meant that, now more than ever, anyone who’s looking at remortgaging, or moving house in the near future, needs to consider very carefully the range of mortgage interest rate deals currently available.

When looking for the best offers, you basically have two options – apply directly through a lender or use the services of a mortgage broker. For anyone who’s never used a mortgage broker before, the natural choice is to use their bank or building society. But are you definitely getting the cheapest interest rate deal using this route?

The two tables below illustrate a range of deals – both for fixed-rate and variable rate mortgages – and the terms available if you go directly to a lender or opt to use the services of a broker. In all these examples, it’s clear that a mortgage broker can secure you the best and cheapest interest rate deal.

Fixed Rate Deals

Mortgage Provider	Product Details	Lender’s Rate	Mortgage Broker’s Rate
Lender A	5 year fixed, 60% max LTV, £1,230 fee	4.61%	3.94%, £1,499 fee
Lender B	5 year fixed, 75% max LTV, £1,317 fee	5.45%	4.14%, no fee
Lender C	5 year fixed, 75% max LTV, £1,020 fee	5.49%	4.20%, £1,499 fee*

*This broker-exclusive deal comes with a maximum LTV of 80%

Variable Rate Deals

Mortgage Provider	Product Details	Lender’s Rate	Mortgage Broker’s Rate
Lender A	2 year tracker, 60% max LTV, £1,034 fee	3.64%	3.44% (2-year discount), £995 fee
Lender B	2 year tracker, 60% max LTV, £1,099 fee	4.09%	4.15%, no fee*
Lender C	2 year tracker, 75% max LTV, £1,317 fee	5.55%	4.14%, £999 fee

*This is a lifetime variable rate deal that doesn’t come with an arrangement fee but there is a £205 valuation fee

All the rates and terms quoted above are correct at the time of writing (February 2023) and are subject to change at the lender’s discretion

How can a mortgage broker get you the best deals?

A mortgage broker will already have a grip on which lenders are currently offering the best interest rate deals and what their terms are. Also, as they have existing relationships with a number of key mortgage providers, they’ll have access to exclusive offers not available to the general public or advertised online.

So, by using their services you’re not only saving yourself a lot of time, but – as you can see from the tables above – potentially quite a bit of money too.

Advantages of going directly to a mortgage lender rather than using a broker

Whilst there’s obviously clear benefits to seeking the services of a mortgage broker, there’s also some potential upsides to approaching a lender directly, such as:

• The time it takes for you to find the right broker who is equipped to deal with your specific mortgage needs may, ultimately, negate the time you’re trying to save by searching for the best lender – and when you do find a broker how will you know if they’re able to meet your requirements?
• Unlike with mortgage lenders, you should expect a broker to charge you a fee for their time and advice. But some will only request a payment when your mortgage application has been successful, which means if you’ve secured the cheapest interest rate deal available then, by using them, you should save money overall

Why Online Money Advisor offers the best route to finding the right mortgage broker

Online Money Advisor uses a unique broker-matching service which is completely free. The main advantage to you is that this acts as a filter between yourself and the brokers we work with. So, you will be matched with a mortgage broker who is guaranteed to have whole-of-market knowledge and is, therefore, best suited to finding an interest rate deal that exactly matches your requirements.

Other advantages of using Online Money Advisor to find you the right broker include:

• A fair-fee policy. You’ll only pay fees tailored to your specific mortgage needs
• All brokers we work with hold the highest industry-standard qualifications
• Our Mortgage Guarantee – which promises to pay you £100 if we’re unable to secure you a mortgage and you get approved elsewhere

If you get in touch we can arrange for this process to start straight away and a mortgage broker we work with will contact you directly.