Trying to find the best mortgage product available for you can be a difficult task. Some people prefer to go it alone, and others get the support of a mortgage broker, although can you use more than one?
Yes, you can use more than one mortgage broker. There are benefits to using multiple mortgage brokers such as access to more mortgage products and more specific knowledge, however, you can run into some issues that I’ll go through in this post.
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Benefits of Using More Than One Mortgage Advisor
- More specific knowledge. If you have a complex situation, using more than one mortgage broker may be useful to make sure they have the right level of knowledge give you the right product. For example, some mortgage brokers may specialise in getting mortages for people with bad credit, people wanting to do an equity release or first-time buyers. Using a mortgage broker that has more experience helping people with similar circumstances will help you get the right product and advice.
- Access to more mortgage products. Depending on what type of mortgage broker you use, some may have access to a resticted number of mortgage products so might not always be able to offer the best deal. Later in this post I’ve gone through the two main types of mortgage broker.
Risks of Using More Than One Mortgage Advisor
Multiple Hard Credit Searches
One of the main risks of using more than one mortgage advisor is if you get multiple hard credit searches on your credit report if they submit a mortgage application.
A hard credit search shows you’ve applied for credit which signals to lenders that you may be a higher risk and they usually last on your credit report for 12 months. If you have more than two hard credit searches within a year, that can negatively affect your credit score, and also your mortgage application.
One way to help protect against this risk is to make sure all the mortgage brokers you’re in contact with are aware you are speaking to more than one mortgage broker. You can also ask them to ask before doing any hard credit searches and only perform a soft credit search at the very most.
Reduction in Priority
If a mortgage broker knows you’re using more than one person to help you find a mortgage, they may put you to the bottom of the pile and prioritise other clients. If you want them specifically for their knowledge and experience if you have a complex situation that may work against you.
Arguably this could be to your advantage if the mortgage broker tries to make sure they’re providing value so you use them to complete the application process. However, if you do want to use a particular mortgage advisor for their experience, it’s probably best to just use one anyway possibly after an initial shopping around period.
Moral Dilemma of Using More Than One Mortgage Broker
One thing to remember about using more than one mortgage broker is that they’re just doing their job. Their job is to help people find the right mortgage, making money for themselves and their company in the process.
When you contact a mortgage broker and ask for help they’ll usually follow a specific process to take your information, review it and come up with suitable options. This initial bit of work can take a number of hours, so if you’re not going to use them they’re going to lose out compared to helping someone that is interested in completing their mortgage application with them.
There may be some element of shopping around and just because they’re exchanging a few emails with you and preparing some options doesn’t necessarily give them the right to charge a fee. They need to provide value in exchange for that fee, whether that’s through helping you find a specific product or advising you on all your available options.
However, if you contact a mortgage broker with no intentions of ever finalising your mortgage with them then you’re just wasting their time.
Also remember that even if the mortgage broker isn’t going to charge you a fee, so are essentially free for you to use, they usually do that as they collect their fee from the lender upon completion of the mortgage product. This means even if they’re free, it’s still best to let them know you’re also using another mortgage broker.
Do I Need a Mortgage Broker?
No, you don’t need to have a mortgage broker and can secure a mortgage on your own. They can be very helpful if you have a complex situation such as wanting to do an equity release, have bad credit, or have a low deposit.
They can also give you tailored advice, run through all of your available options as well as help guide you through the full process through to when you get your keys.
This can save you countless hours or even weeks searching for the right product and learning the process, so definitely can be worth the money.
Types of Mortgage Broker
- Tied or restricted brokers. These mortgage brokers are restricted to only being able to offer a limited selection of mortgage products. This can be because they work for a mortgage lender or have specific deals with lenders and in exchange for only being able to offer a limited range.
- Whole of market brokers. This type of broker has access to offer mortgages from any lender. Certain lenders may only offer deals to tied brokers in exchange for being exclusive, however whole of market brokers may still have access to more exclusive offers you may not be able to get personally.
There’s not necessarily a type of mortgage broker that’s best as they both have their advantages and disadvantages. It all depends on your personal circumstances and how well-suited that particular mortgage broker is to offer a mortgage product that can meet your needs.
How To Know If Your Mortgage Broker Is Good? Benchmark
What can really help as a benchmark to determine whether your mortgage advisor is offering you a good mortgage product is to try and find one yourself. Using one of the many mortgage comparison websites you can usually get a general idea of what deals you get in a few minutes.
With these products in hand, you can compare these against what the mortgage broker is able to offer. With their connections and industry knowledge, especially for complex scenarios, they should be able to beat it or give you advice that may even put you on a completely different product.
Using multiple mortgage brokers can also help here if they send you a list of recommended mortgage products and you can see that one broker is able to offer a better deal than another. Just be careful they don’t perform multiple hard credit searches that I’ve highlighted earlier in the post.
Difference Between a Mortgage Advisor & Broker?
There is no difference between a mortgage advisor and a mortgage broker, the name is interchangeable. They are both qualified professional roles that specialise in finding you the best mortgage deal for your situation.
What To Ask A Mortgage Broker?
If you are wanting to speak to a mortgage advisor, this post I’ve written on what questions to ask a mortgage broker may be helpful so you can ensure you’re asking the right questions and getting value from the conversations.
Summary – So Can You Use More Than One Mortgage Advisor?
Overall, as you can see there are multiple potential benefits to using more than one mortgage advisor, especially if you have a complex situation. As long as you’re honest and upfront with all of the mortgage advisors that you’re in contact with so they’re aware, you can ensure that you aren’t wasting their time and you don’t cause any issues such as multiple hard searches on your credit report.
Hi, I’m John. I’ve always had a keen interest in Finance, so much so that I’ve made a career out of it! This site is a place where I can share everything I’ve learned as well as give me the excuse to research certain topics.
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