Why You Should Work with a Trusted Broker
There are so many things that determine what kind of mortgage deal you will be able to get, but the size of your deposit has to be one of the most important. So, let’s look at the role your deposit plays, along with why working with a trusted broker for mortgage advice can help you to secure the best possible deal.
Benefits of a Larger Deposit
There are a number of benefits to saving up for a larger deposit. A bigger deposit means a smaller loan, and a smaller loan means less interest accruing over time. By having a bigger payment to put down on a house, you are also seen as a lower risk to lenders. As a result, they could offer you really competitive interest rates. So, couple that with the interest you are already saving, and you could see a lot more money in your pocket over the years to come.
We need to talk about negative equity, too, and how having a bigger deposit can protect you from it. When you have a smaller deposit, an unexpected market downturn could see the value of your property become less than the amount of money you still owe. With a smaller mortgage to pay off, this risk is lowered.
Challenges of a Smaller Deposit
Having a smaller deposit comes with its challenges, and the first one of these is being limited in the variety of mortgages that are available to you. Lenders will see you as more of a risk, and their best products may not be available to you as a result. That higher risk to the lender could also come with stricter affordability checks, as they need to be extra sure that you can pay the loan off with no issues.
We’ve already spoken about interest rates, and it’s just reality that having a lower deposit will see you offered deals with higher interest rates. Even a slight increase in interest can add up over time, especially when you consider how long the average mortgage term is.
Why Should You Work with a Mortgage Broker?
Trying to get a mortgage on your own can be really overwhelming, and it can feel as though the odds are well and truly stacked against you if your deposit is on the smaller side. That’s where a mortgage broker comes in! When you work with a trusted broker, you can look forward to the following:
- Brokers have access to products from all kinds of lenders, including some that you might not have been aware of! This means a higher chance of success.
- A broker will take a look at your individual circumstances, such as your income and credit score, and then provide recommendations that are tailored to you.
- A very experienced broker can often negotiate better rates on your behalf, even if you have a smaller deposit!
- Instead of choosing lenders yourself and then going through the long application process for each one, a broker will do all of the legwork for you with an expert eye for detail.
All of this improves your chances of being approved, no matter your deposit size.
What Next?
Your deposit size can make a lot of difference, but with the help of a trusted mortgage broker, you can secure a deal that works for you! So why not get in touch with one today?
