The figure of the broker or mortgage intermediary is increasingly popular in Spain. It is a professional or agency that is in charge of finding and obtaining the best possible mortgage for its clients, with conditions that are usually more attractive than those that can be obtained for free. According to the financial comparator HelpMyCash.com, the conditions of service can vary greatly from one broker to another. For this reason, it is important to know key aspects of their way of working to get the best out of their work and not run into unexpected surprises.
What services does it offer?
The first thing to know is what specific services this professional is going to provide. They can range from the analysis of the client’s profile and the search for offers that fit their profile, to the formal request before the banks, the negotiation to improve the standard conditions or, even, accompaniment during the signing of the mortgage contract. The broker is obliged to specify the extent of its functions and present this information to the applicant, both verbally and in writing in the brokerage agreement.
According to HelpMyCash, mortgage brokers that do not charge client fees tend to provide a more basic service. Normally, they limit themselves to showing you which banks can grant you a good mortgage, without taking care of processing the application or negotiating with the entities. This can be convenient, for example, for people with a good profile who want to get an idea of their options.
On the other hand, payment brokers usually offer a more complete service: they process their clients’ requests, negotiate with banks to improve their mortgages and organize the signing of the deeds at the notary. Consequently, they may be a more suitable option for those who need help obtaining certain very specific advantages, such as lower interest or financing of more than the usual 80%.
how much money do you charge
It is also essential to know the broker’s fees to assess whether it is worth paying them or not. By law, this information must be indicated in a specific section of the brokerage contract. Fees can vary greatly from one intermediary to another: a few are free, some charge a percentage of the amount of the mortgage that is signed and others ask that you pay them a fixed amount of money.
According to HelpMyCash, the latter usually charge between 1% and 5% of the amount, while third parties have fees of between 3,000 and 5,000 euros. However, there are brokers that can make your fee more expensive if you need to finance more than 80% of the purchase. The most expensive can raise the cost of the service to 7,000 or 9,000 euros.
Another aspect that the contract must specify is when the fees are paid. Typically, they are paid once the mortgage obtained by the broker is signed. In the event that the client does not agree to contract any of the intermediary’s offers, the latter does not charge a single euro (as provided by law). Some brokers ask that the payment be made after obtaining the firm offers from several banks. If the applicant finally rejects them, the intermediary or agency is obliged to refund the money paid.
Which banks do you work with?
Knowing first-hand which banks the broker works with is information that must be counted on. Thus, the applicant will be able to request financing from entities not contacted by the intermediary and try to get a better mortgage. In fact, the intermediary himself is obliged to specify which banks he has turned to when he presents several firm offers to his client.
It is important that the client does not freely sign the mortgage with a bank that has submitted an offer to the broker. If it happens, the intermediary usually demands payment of his fees plus a penalty, although everything will depend on the conditions of the contract signed between the parties. Nor can you reject the offer obtained by an intermediary and sign with the same bank immediately afterwards. In these cases, the period of stay established in the contract must be allowed to pass, which is usually between six and 12 months. If this term is not respected, the fees will have to be paid to the broker.
The great advantage of hiring a broker is that the client will be able to compare the offers that he presents to him and those that he obtains on his own, which increases the chances of finding a mortgage that best suits his needs. To know which mortgage is more attractive, you have to look at several relevant aspects, in addition to interest, which directly affect the final price of the loan. You can check what they are on the HelpMyCash.com website.
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