What is a Master Broker
A master mortgage broker is a broker that gives customers access to a wide range of mortgage providers. Currently, thousands of different mortgage products are being marketed by more than 400 lenders in the UK and the number is increasing continually. A master broker should be able to use their experience and specialist knowledge to help their clients choose the right mortgage for their particular circumstances.
Master Broker Competition
The rising number of mortgage providers and mortgage products should benefit both brokers and borrowers alike. Increased competition should lead to more competitive fee structures and better levels of service, but some lenders may find that they are no longer able to compete in the marketplace.
Types of Mortgage Available from a Master Broker
Master mortgage brokers provide the full range of available mortgages to their clients; the portfolio will usually include:
self-employed mortgages; non-status mortgages; adverse and bad credit mortgages; 100 percent mortgages; 125 percent mortgages; re-mortgages; debt consolidation mortgages; buy to let mortgages.
Master Brokers Services & Fees
Master mortgage brokers are regulated by the Financial Services Authority (FSA)When offering a mortgage to a prospective borrower, a broker is required to provide a Key Facts Illustration (KFI) document that provides all pertinent details about the mortgage, including the following information about the broker: what fee will be charged by the master broker to the borrower; what commission, if any, will be payable to the master broker by the mortgage provider; whether the mortgage broker will offer one or more than one choice of mortgage product to the customer; whether the master broker recommends mortgages from all sectors of the market or only products from a restricted list of lenders; how a borrower can contact the Financial Ombudsman should they wish to complain about the service received from a master broker.
Summary Master brokers are in a strong position to help all types of borrowers find the right type of mortgage for their circumstances; as part of their service, master brokers have to disclose details of fees and commission received to prospective borrowers.
