The mortgage broker sits between the borrower and the bank to match lending criteria to the potential borrower’s situation. Once the client is in a position to proceed with an application, the broker ensures that all relevant documents and proofs are collected and passed onto the bank, becoming the sole point of contact for the mortgage applicant when it comes to the funding arrangements.
Many banks prefer to distribute their funding via brokers as it is a cheaper way to lend. Even though the banks pay a commission to the intermediary, the bank does not have to carry the risk of supplying the correct advice, so the cost of regulation is a lot cheaper. As a result, most banks are happy to distribute a large proportion of their lending via brokers.
The quality of brokers varies enormously – some provide a cheap service that involves little more than matching criteria and handling paperwork. Others charge fees and provide more of a hands-on approach, even going as far as helping to negotiate the purchase price with estate agents.
Contractor specific mortgage brokers are intermediaries who have chosen to specialise in assisting contractors, which involves much trickier lending criteria that has to be navigated. The quality of brokers in this space is no different, with a large degree of success and quality of service depending on the broker.
CMME are one of the pioneers of contract-based underwriting, specialising in the contractor market since 2004. The business has been built on the firm belief that the client’s needs are paramount, and an excellent client experience is at the forefront of everything they do.
With lending criteria becoming more and more difficult to navigate, it is more important than ever that contractors utilise the right mortgage broker in order to address their borrowing needs.