Broker Vs Bank: Mortgages, Mortgage Protection & Home Insurance

Buying a home is a significant milestone in life that brings with it both excitement and responsibility. It’s essential to consider how you will protect your investment and ensure the security of your property. Two vital aspects of safeguarding your home are mortgage protection and home insurance. However, when it comes to getting these crucial policies, you may find yourself faced with an important decision: Should you work with a broker or a bank?

In this article, we’ll delve into the factors to consider before making your choice and why working with a Broker could save you time, money and hassle.

What is a Mortgage Broker?

Brokers act as intermediaries between borrowers (individuals or businesses looking for a mortgage) and lenders (banks). The role of a mortgage broker is to assist borrowers in selecting the right mortgage option and to facilitate the loan application process.

A mortgage broker has access to a wide range of mortgage lenders and products, which allows them to find the best mortgage loan option based on the specific needs and financial situation of the client.

Mortgage Brokers don’t just assist in finding the best mortgage rates. They can also help you find the right mortgage protection and home insurance.

Mortgage Broker Pros

1. Extensive Market Access: This extensive market access allows brokers to find tailored options that align with your specific requirements and budget.
2. Personalised Help: Brokers work closely with you to understand your unique circumstances, financial goals, and mortgage preferences. This ensures that you make informed decisions that suit your individual needs.
3. Saves Time & Energy: Searching for a mortgage, mortgage protection and home insurance on your own can be time-consuming and overwhelming. By utilising a mortgage broker, you delegate the task of researching, comparing policies, and negotiating terms to a knowledgeable professional. This saves you valuable time and effort, allowing you to focus on other things.
4. Access to Specialised Policies: Mortgage brokers often have access to specialised products designed specifically for homeowners and mortgage borrowers.
5. Expert Negotiators: Brokers act as intermediaries between you and the provider, advocating for your best interests. Brokers leverage their relationships with banks and insurers to negotiate on your behalf, potentially saving you money.
6. They are Specialists: This may sound like an obvious statement, but think about it. Who better to advise you on the best possible mortgage and insurance policies than a broker with extensive experience? At Campion Insurance, this is one of the things that we do best.

Mortgage Broker Cons

Using a mortgage insurance broker may come with a fee but what value would you put on the above advantages? Having an expert who can search, negotiate and secure the ideal mortgage, mortgage protection and home insurance for you is worth the reasonable fees incurred.

What is a Direct Lender?

A financial institution or lender is considered a direct lender if it lends money to customers directly, cutting out brokers or other intermediaries. In other words, you deal directly with the organisation supplying the loan when you take out a loan from a direct lender.

Banks, credit unions, online lenders, and other financial organisations can be considered direct lenders. They have the power to decide whether to lend money, to set the conditions of the loan, and to give money directly to borrowers.

Direct Lender Pros

1. No Intermediary: some may be drawn to the idea of dealing with the lender directly and completing the process in one place.
2. Lender Has Access: if using your own bank for your mortgage, you won’t need to provide them with bank statements.
3. Lenders generally provide mortgage protection and home insurance.

Direct Lender Cons

1. Limited Options: the lender will only offer you their own mortgage, mortgage protection and home insurance products as most are tied agents and cannot review the full market on your behalf- limiting your options.
2. Time-Consuming: it will be more time-consuming for you to choose a direct lender as you will need to compare each bank or lender yourself and decipher which one has the best deal and offers the most suitable insurance for your needs. 

Key Takeaway

The advantages of using a broker for your mortgage, mortgage protection and home insurance include extensive market access, expert negotiation skills and saving time and energy which outweigh the costs. Using a broker puts you in the best position to get the best possible mortgage, mortgage protection and home insurance rates available.

Why Work with Campion?

Are you now wondering which mortgage, mortgage protection and home insurance lender to choose from? At Campion Insurance, you get more than just affordable quotes. You get an expert advisor who has your best interest at heart. We pride ourselves on our customer-centric values and the professional but friendly approach we take with each and every client.

Navigating mortgage rates, mortgage protection and home insurance quotes can be challenging and confusing if you decide to do it alone. That’s why choosing a mortgage broker, like Campion Insurance, could set you on the fast track to finding the ideal mortgage and insurance policies for you.

So remember at Campion Insurance you get:

• 35+ years of expertise
• Dedicated service through our nationwide office network
• A one-stop shop solution
• Discounts on Mortgage Protection
• Low-cost Legal Fee option

Get Started With Campion today.

Option One: Give our team a call directly at 0818 297 600

Option Two: Fill out THIS callback form

Option Three: Visit our website to learn more about Mortgages, Mortgage Protection & Home Insurance

Suggested Further Reading

A Guide to Mortgage Switching Costs