Remortgage Brokers versus Banks

When it comes to obtaining a remortgage it can be confusing with all of the information and news stories. This leaves borrowers needing clear answers. 

One question a homeowner may have when tackling a remortgage is whether they should contact a remortgage broker or a lending bank. What exactly is the difference between the two?

Brokers Are Middlemen That Work For You

Remortgage brokers are middlemen that work between the borrower and the bank. Banks work directly with the borrower. 

An advantage of a broker will be felt by those who have trouble qualifying for a remortgage or have complicated deals. These situations are usually turned away by banks so a broker can be very helpful in finding the right solution for the homeowner.

It would seem that using a broker would be more expensive since he or she is serving as a middleman, but they can be just as competitive as a bank. It pays to shop around and obtain quotes and ask questions.

Banks Already Have A Relationship With the Homeowner

Banks often have an established relationship with a customer. That relationship can make a homeowner more comfortable when going through the remortgage. Also, banks often have rates that are reserved for customers that are not available to brokers.

Both Can Work With You for a Remortgage

Brokers go shopping for a lender or bank that will give the homeowner the best rate. They work on behalf of the homeowner. They also can usually obtain refinancing when deals are complicated or the homeowner has been denied by a bank. They can give advice on different lenders and since they work for the homeowner will seek to find the right remortgage solution for them.

 

There are slight differences between the two, specifically in that one lends and one looks for the best between many on behalf of the homeowner. They are alike in that each can work with you for a remortgage. Deciding whether a bank or a remortgage broker is right for you will depend on your individual financial situation and remortgage goals.



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