Broker

What is a Broker?

A Broker (sometimes called an Intermediary) is someone who acts as an intermediary between you and the provision of a financial service. Typical types are insurance brokers and mortgage brokers.

Brokers are strictly regulated. They are paid by commission, and this has to be ‘transparent’ – which means that you have to be made aware of all commissions right from the start.

As there are now a multitude of different lenders offering many differing types of credit products, the popularity of brokers has increased as it makes it easier for individuals to shop around for credit.

Typically the role of a broker will not only be to find the most suitable product for an individual but also to package their application for submission to the lender such as doing a mortgage fact find, running a Credit Check and ensuring income and equity criteria are matched, documentation (such as identity verification and wage slips), obtaining a lender Agreement in Principle and ensuring that the individual is correctly advised.

All brokers are regulated in the same way as lenders are: for example a mortgage broker will be regulated by the authorities as a mortgage lender would be. As such they are subject to the same rules and potentially can be censured in the same way as a lender if they are deemed to have acted outside of regulatory boundaries.

Our Annual Banking and Credit Card Surveys have consistently shown that respondents feel that they have a less stressful and better experience all round when using a broker for mortgage finance.

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