Mortgage brokers still play an important role when it comes to choosing the right home loan, according to an industry expert.

Andrew Hagger of financial information website Moneynet.co.uk believes that the job of finding the right mortgage has not become any easier just because mortgage lending has fallen since the credit crisis, and mortgage brokers still help to guide borrowers through the maze.

There are a fraction of deals available compared to the vast number of mortgages that were on offer in 2007, before the housing crash and consequent recession, but there is still an array of mortgages to choose from, even for those who have already decided whether to go for a fixed rate or a tracker, says Mr Hagger.

He explains that choosing a mortgage is a more complicated process than simply looking at a best buy table to find the cheapest loan or credit card, because there are a number of other factors to consider besides the headline interest rate.

“Unfortunately a number of lenders continue to bypass the broker community and sell their products directly via branch networks or increasingly online, a situation which has hit the intermediary market hard,” he said, leaving borrowers susceptible to opting for attention-grabbing interest rates without shopping around or using a broker to make sure it is right for their circumstances.

Borrowers have to take into account not just the interest rate but the total cost of a mortgage, Mr Hagger continued, including associated fees, which vary from one provider to another, how much they are looking to borrow, and how much they have saved for a deposit.

“It’s not a two minute job to pick the cheapest and that’s the problem, it’s not a case of one mortgage fits all.”

“When you consider that your mortgage is likely to be the biggest financial transaction you’ll undertake in your lifetime, it certainly makes sense to seek advice to ensure you don’t make what could be a potentially expensive mistake.”

© Fair Investment Company Ltd

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