What does a Mortgage Broker “actually” do?
A mortgage is one of the most common financial instruments used to purchase a home or property in the United Kingdom (UK). It works by allowing the borrower to borrow money from a lender, such as a bank or building society, to buy a property. The borrower then pays back the loan, plus interest, over a set period of time.
When applying for a mortgage, the borrower needs to provide details such as their income, employment status, and credit history. The lender then assesses the borrower’s ability to repay the loan, based on their credit history, income, and other factors. If approved, the lender will provide the borrower with a mortgage agreement, outlining the terms of the loan, including the amount borrowed, interest rate, and repayment schedule.
Once the terms of the mortgage have been agreed upon, the borrower must make the necessary arrangements to pay back the loan. This includes making regular payments on the loan, with the amount and frequency of payments determined by the lender.
The borrower must also pay interest on the loan. The interest rate is determined by the lender, and is usually based on the Bank of England base rate. The interest rate can vary depending on the type of mortgage and the amount borrowed.
In the UK, there are several different types of mortgage available, including fixed rate mortgages, tracker mortgages, and variable rate mortgages. The type of mortgage chosen will depend on the borrower’s personal circumstances. Each type of mortgage has its own advantages and disadvantages, so it is important for the borrower to understand the differences before deciding which one to choose.
One of the most important considerations when choosing a mortgage is the length of the loan. Mortgages are typically available for between 10 and 30 years, and the longer the loan period, the lower the monthly repayment amount. However, the total amount paid will be greater over the longer term, due to the added interest payments.
Mortgages can also be secured against the property being purchased, meaning that if the borrower does not keep up with their repayments, the lender can take possession of the property. This is known as ‘repossession’, and it is important for borrowers to be aware of the risks involved.
Finally, it is important to note that the borrower may need to pay additional fees when taking out a mortgage. These can include an arrangement fee, a valuation fee, and stamp duty.
Key Points:
• A mortgage is a financial instrument used to purchase a home or property in the UK.
• The borrower must provide details such as their income, employment status, and credit history to the lender in order to apply for a mortgage.
• The interest rate on a mortgage is determined by the lender and is usually based on the Bank of England base rate.
• The length of the loan, type of mortgage, and the amount borrowed will all affect the monthly repayment amount and the total amount paid over the loan period.
• Mortgages can be secured against the property being purchased, meaning that if the borrower does not keep up with their repayments, the lender can take possession of the property.
• Additional fees may be payable when taking out a mortgage, including an arrangement fee, a valuation fee, and stamp duty.
People Also Ask:
Q: What are the benefits of a mortgage?
A: The main benefit of a mortgage is that it allows borrowers to purchase a home or property without having to pay the full amount upfront. Additionally, the long term loan period means that the monthly repayment amounts can be much lower than other loan options.
Q: How much can I borrow for a mortgage?
A: The amount you can borrow for a mortgage will depend on your personal circumstances, such as your income, credit history, and employment status. The lender will assess your ability to repay the loan before approving the mortgage.
Q: What happens if I don’t keep up with my mortgage payments?
A: If you do not keep up with your mortgage payments, the lender can take possession of the property as security. This is known as ‘repossession’, and it is important for borrowers to be aware of the risks involved.
How does a mortgage work UK? – Review
What does a Mortgage Broker “actually” do?
This is a question i get asked a lot, and its painful. Mortgage brokers do so much work but people don’t realise because it’s all behind the scenes!
Mortgage Brokers:
– Save time
– they work for you not the lender!
– bring knowledge and expertise to the table.
– qualified
– give you more products and choice.
and SOOO MUCH MORE!
enjoy the video and leave a comment below letting me know what you think!
Here are another two videos you might like:
Get Mortgage Leads for your business! – The 5 Key areas to focus on in 2019 – https://www.youtube.com/watch?v=YNr2eRFAXGE&t=4s
Generate Leads For Free – Why I Coach and Mentor Mortgage Advisers – https://www.youtube.com/watch?v=UEoK0KS4kSg
Visit my website if he is who you are after – https://www.garydas.com/
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(your home may be repossessed if you do not keep up with payments on your mortgage)
Please feel free to drop a comment below or direct message if you do have any questions.
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