Can a Mortgage Broker Get You a Better Interest Rate?

It’s well documented that the majority of mortgage borrowers who use a broker end up finding a better deal. While it’s true that most advisors charge a fee, it’s the overall cost that’s important, and that will usually work out in your favour if you go down the broker route.

Here, we outline how mortgage interest rates can differ for people who enlist the services of an expert compared to those who go directly to the bank, and why it pays to use a broker.

What kind of interest rate can you get through a mortgage broker?

In most cases, it will be a more favourable one than the interest rate you would end up with by going it alone. If you were to approach a mortgage lender at random, you’d be limiting yourself to one range of products when there’s an entire market of possibilities out there.

Mortgage borrowers who go directly to a lender they are familiar with have no way of knowing whether they’re getting the best, and most suitable, deal for them. The only way to be sure is to apply through a mortgage broker who has access to the entire market.

Not only are the advisors we work with whole-of-market, they can often arrange broker-exclusive deals you won’t find on the high street or online.

The tables below illustrate how the rates typically compare between mortgages set up through a broker and those offered directly by a bank or building society.

Fixed Rate Deals

Mortgage Provider	Product Details	Lender’s Rate	Mortgage Broker’s Rate
Lender A	5 year fixed, 60% max LTV, £1,230 fee	4.61%	3.94%, £1,499 fee
Lender B	5 year fixed, 75% max LTV, £1,317 fee	5.45%	4.14%, no fee
Lender C	5 year fixed, 75% max LTV, £1,020 fee	5.49%	4.20%, £1,499 fee*

*This broker-exclusive deal comes with a maximum LTV of 80%

Variable Rate Deals

Mortgage Provider	Product Details	Lender’s Rate	Mortgage Broker’s Rate
Lender A	2 year tracker, 60% max LTV, £1,034 fee	3.64%	3.44% (2-year discount), £995 fee
Lender B	2 year tracker, 60% max LTV, £1,099 fee	4.09%	4.15%, no fee*
Lender C	2 year tracker, 75% max LTV, £1,317 fee	5.55%	4.14%, £999 fee

*This is a lifetime variable rate deal that doesn’t come with an arrangement fee but there is a £205 valuation fee

*All rates cited in these tables were accurate at the time of writing (February 2023) and are subject to change. 

As you can see above, brokers can usually help you secure a superior interest rate to the one you’d get by going straight to the nearest bank. They can potentially help you save money on fees too, and will make you aware of the overall cost involved before you begin.

Why use an Online Mortgage Advisor broker?

The best way to secure the most favourable rate available on your mortgage is to use a broker who is the right fit for you, not just some random advisor you’ve found on Google.

All mortgage brokers have areas they specialise in. Some are bad credit specialists, others are buy-to-let experts, and there are even advisors who work exclusively with expats. It’s important to find one whose knowledge and expertise aligns with your needs and circumstances.

This is where we come in. Online Mortgage Advisor offers a free broker-matching service which introduces people to their ideal advisor. We only match our customers with brokers who…

• Are whole-of-market
• Have been fully vetted and trained by us
• Offer a five-star service
• Agree to our fair-fee policy

Make an enquiry with us and we’ll set up a free, no-obligation chat between you and your deal mortgage broker so you can find out what kind of rate they can help you secure today.