There are several ways you can take out a mortgage. You can do this directly at the bank, but also through a mortgage advisor. Research by the Mortgage Association has shown that taking out the mortgage through an advisor is often more advantageous than directly at the bank.
Higher interest rates on mortgage through bank
The survey showed that home buyers who have taken out a new mortgage via the bank paid more than 0.67% more interest than the best provider. Homebuyers who have taken out the mortgage via an independent mortgage advisor paid only 0.30% more mortgage interest than the lowest possible interest. This would be caused by the fact that the available mortgages are not easily accessible to the consumer.
76% of consumers can save thousands of euros on the mortgage
76% of homeowners opted for a more expensive mortgage than the cheapest on the market at the time of closing. They can still save up to 0.3% on the mortgage. This does not seem like much, but on the total amount of the mortgage this is thousands of euros.
The fact that so much can be saved has to do with the selective distribution policy of lenders. No party offers access to all mortgages. In addition, consumers prefer a known name or their own bank rather than a new, smaller mortgage provider. A bank only looks at its own product and not at what others offer.
Independent mortgage adviser cheaper than bank
Many consumers think that taking out a mortgage through an independent mortgage advisor costs more than through the bank. This is also the case. A mortgage advisor charges about 800 euros more than a bank for advice. But do not deceive yourself here. If you take out a mortgage at a bank where you pay 0.7% more interest than for a mortgage through an independent mortgage advisor, you will be charged about 14,000 euros in 10 years (house value € 200,000). The costs for a mortgage advisor are then negligible compared to the extra costs of the bank.
In addition, an independent mortgage advisor can also view several mortgages for you and pay attention to maturity and risk premiums. Some mortgages have in the conditions that your interest rate drops when the value of your house increases. This is the risk storage. In addition, an independent mortgage advisor advises you on the basis of your situation and wishes. Do you want a mortgage that you want to secure for a longer period because of the interest rate or conditions? Then the mortgage advisor can base his search for the right mortgage.
Get in touch with an independent mortgage advisor
From the research we can conclude that it is more advantageous to use an independent mortgage advisor who looks at multiple mortgages. Consumind is happy to put you in touch with a consultant in your area for an introductory mortgage interview.