The case FOR using a mortgage broker
Access to the whole market
Going direct to a bank or building society limits you to their own products. A whole-of-market broker can access products from dozens of lenders, including exclusive broker-only rates not available to the public. For most people, this alone results in a better rate than they'd find themselves.
They handle everything
The mortgage application process involves significant paperwork, back-and-forth with lenders, documentation requirements, and coordination with your solicitor. A broker handles all of this on your behalf — saving you weeks of work and significant stress.
They know which lenders to approach
Every lender has different criteria. Some are more generous with self-employed income. Some are more flexible on credit history. Some offer better terms for new builds, HMOs, or flats above shops. A broker knows which lender is most likely to approve your application at the best rate — and applying to the right lender first time avoids unnecessary hard searches on your credit file.
They're free (or low cost)
Many mortgage brokers charge nothing at the point of service — they earn commission from the lender when your mortgage completes. Even fee-charging brokers typically pay for themselves many times over through better rates or higher loan amounts.
The case AGAINST using a mortgage broker
Your situation is very simple
If you have excellent credit, a large deposit, straightforward employed income, are buying a standard residential property, and have plenty of time to research — you could potentially find a competitive deal yourself. Some people enjoy the research and are comfortable making the comparison themselves.
Your bank has an exclusive deal
Occasionally, your current bank may offer an exclusive retention product (usually for remortgage customers) that isn't available via brokers. A broker should still be able to confirm whether going direct is genuinely better in this scenario.
When using a mortgage broker is particularly important
- You're self-employed or have complex income
- You have any adverse credit history (CCJs, defaults, missed payments)
- You're buying a non-standard property type
- You need a high loan-to-income or loan-to-value
- You've been declined by a lender previously
- You're a first-time buyer unfamiliar with the process
- You're a portfolio landlord with multiple properties
- You simply don't have time to research the market yourself
The verdict
For the vast majority of people in the UK, using a whole-of-market mortgage broker is the better choice. You get wider market access, expert advice, someone handling the process for you, and — in most cases — a better outcome than going direct. With free matching services like Nesto, there's nothing to lose by trying.