There are many reasons why you may need to take out a loan. Perhaps you need a new car or new appliances for the home? Or maybe you want to improve your home by adding to it? Loans are readily available from a range of lenders. Your first option will probably be your bank, yes? Hold on a minute, because there are better options. This article explains why you may want to talk to a mortgage broker rather than go directly to the bank so let’s get started.
Why Choose a Finance Broker?
What is a finance broker? Let’s say you go to your bank and request a loan. The bank is happy with your request and offers you the branded loan that they deal with. This is your sole option when you go to a bank or other financial institution. The loan may be a decent offer, but what if you could ‘shop around’ for loans as you do with other products?
That’s the main benefit of the finance broker. He or she does not work for a bank or financial institution. A finance broker knows the market inside and out and has relationships with many lenders. They are trusted by the lenders in the industry and have contacts who keep them updated with the latest loan deals.
Put simply, the finance broker is a middle man between the lenders and the customer. They will assess your situation and talk to the lenders who are most appropriate for your individual case. This way you get the best deal. You can learn more by checking out a reputable finance broker.
What Loans are Available?
As the finance broker will be up to speed with the latest finance news they will be able to offer you a choice of deals. However, we strongly recommend you follow their advice should you be looking for the right deal. The finance broker is an authority on the world of loans and financial transactions and will be able to show you the way towards a great deal.
Be aware the there will be a fee for using the broker’s services. This will be either a set fee or a percentage. However, when you compare the repayment amount to that from a bank’s branded equivalent you will see the difference is quite considerable and easily covers the fee and more. It could be said that the finance broker is there to help you, and the bank to make money for itself!
The Best Loan Deal for Me?
The simple fact is that loan interest rates change all the time, and can be pegged to central bank operations. Your finance broker will be aware of the rates at the time you apply and may be able to find a rate that changes with the base rate. This can be beneficial across the years as your loan may be one that lasts a number of years. A mortgage, for example, could take 25 years to repay.
For smaller domestic loans – especially for home improvements – the repayment period will be less, and the monthly payments determined by the length of the loan and in the interest rate. For the layman this can be complicated to get to grips with, but a finance broker can put together a deal and explain it to you in simple terms.
If you are looking for a loan for whatever reason, remember that the car or appliance you buy will be considered security. Talk to a local finance broker now for the best deals around, and you’ll find them more than happy to help.