Many people recruit a broker to help them make the right decision when it comes to which mortgage or insurance policy to go for. However, finding a broker that knows what they are doing and that has your best interests in mind is often difficult. So should you go out and find a broker?
Pro: They Do All The Work [/b]
If you get advice from a broker (you should always double check that you are getting advice and not just information), then they are the ones doing all the legwork. They are in contact with a wide range of lenders, so they can easily compare policies. Whereas you can put a lot of time and effort into finding the right policy, it will never be the same amount that a broker can do, because it is their full time job. They can often be more efficient too.
Pro: Peace of Mind[/b]
Putting important things like mortgages or income insurance policies in the hands of a professional will give you peace of mind that everything is covered. Because they have more time, brokers will be able to check the policies far more thoroughly than a regular consumer will. A broker is good for helping you understand the jargon, clarifying different types of insurance and answering queries.
Pro: They May Have More Access[/b]
Some brokers work with lenders that rely on them to recommend them to the right clients. They may, therefore, offer special rates that you wont have access to elsewhere.
Pro: You May Save on Fees [/b]
There may be a whole variety of different fees that are associated with taking on a lender. A broker has the potential to waive these fees, thus saving you hundreds of pounds.
Con: Your Broker May Not Have Your Best Interests at Heart[/b]
If your broker works on commission, then they may be pushing a certain lender despite the fact that they are not suitable for you. The best way to combat this is simply to ask them how they get paid. If you are the stoic type, however, then it is generally safe to assume that brokers who charge an upfront fee have the freedom to offer the best insurance policy for you.
Con: They Are Not Always Accurate [/b]
Like price comparison websites, the quote the broker gives you may be different to the one you are given when you apply directly, or they may add extra fees on top. This can be avoided by doing research in to the offers that the broker recommends, to see if they tally up. You can then ask your broker why if they do not.
Con: Some Lenders Do Not Use Brokers[/b]
Since the economic crash, some banks have been wary of brokers, and have stopped working with them. You may then miss out on these lenders.
Should You Use a Broker?[/b]
If you feel confused or overwhelmed by the insurance or loan market, then a broker is for you. Choose someone like Active Brokers Ltd and you will be in good hands.