Mortgage Broker or Bank: Which Route Fits Your Needs?

What a direct lender can offer

You can ask a bank or building society about its own products and application process. Existing customers may have retention or product-transfer options, and some offers are only sold direct. Direct advice, where provided, is limited to that lender's range.

If you compare banks yourself, keep the loan amount, repayment term and comparison period consistent. A difference in assumptions can make one quote look cheaper without representing a better deal.

What a broker adds

A broker can help match your circumstances to available lender criteria, compare appropriate products and explain a recommendation. It can also help with document preparation and communication during an application. Ask who handles the case and which lenders or product types are outside its range.

The broker does not decide whether the lender will approve the mortgage. Property valuation, underwriting and legal issues can still affect the outcome.

Compare charges and incentives fairly

A broker might charge you a fee, receive lender commission or use a combination. Ask for the relevant disclosure before proceeding. Direct applications can still have lender and third-party costs.

Include product fees, incentives and any early repayment charge, not only the headline interest rate. A direct-only deal should not be ignored, and a broker's cashback offer should not be treated as proof of a lower total cost.

A practical decision process

• Write down your budget, borrowing needs and important product features.
• Obtain a clear current illustration for each genuine option.
• Check the lender range and fees associated with any advice service.
• Compare overall costs and the effect of changing circumstances.
• Decide whether you need broader eligibility guidance or are comfortable researching direct options.