When you are looking for a mortgage, one of the first decisions you face is whether to approach a lender directly or use a mortgage broker. Both routes can lead to a mortgage, but they are very different experiences - and the choice can affect not just the rate you end up on, but how smoothly the whole process goes.

This guide explains the difference between the two approaches and helps you decide which makes more sense for your situation.

What does going direct to a lender mean?

Going direct means approaching a bank or building society yourself, without using an intermediary. You might walk into a branch, use their website, or call their mortgage team. The lender will assess your application against their own criteria and offer you products from their own range only.

This can seem appealingly straightforward, particularly if you already bank with the lender and have a relationship with them. But it does come with an important limitation - you are only seeing what that one lender has to offer.

What does a mortgage broker do?

A mortgage broker acts as an intermediary between you and lenders. Depending on the type of broker, they have access to a range of mortgage products from multiple lenders and can search the market on your behalf to find the most suitable deal for your circumstances.

There are different types of broker. A tied or multi-tied broker works with a restricted panel of lenders. A whole-of-market broker has access to the full range of lenders and products available, including some that are only available through intermediaries and not directly to the public. At Aspect Mortgages, we are whole-of-market, which means we are not restricted to any particular lender or panel.

What are the advantages of using a broker?

The most obvious advantage is access to a wider range of products. A whole-of-market broker can compare hundreds of deals across dozens of lenders simultaneously, whereas going direct limits you to one lender's range. Even if that lender's rate looks competitive, you may not know whether a better deal exists elsewhere.

A broker also assesses your eligibility before recommending a lender, which matters more than many people realise. Different lenders have different criteria - for income types, employment status, credit history, property types, and more. A broker can match you to lenders who are likely to approve your application, rather than you making multiple applications and potentially accumulating hard searches on your credit file.

For anyone with a more complex situation - self-employed income, contract work, a previous credit issue, or a non-standard property - the broker route is particularly valuable. Lenders who specialise in these situations are often only available through brokers, not directly.

There is also the advice element. A regulated mortgage broker is required to act in your best interests and to recommend what is suitable for your circumstances - not just what one particular lender has available.

Are there any advantages to going direct?

In some cases, going direct can be marginally faster if you have a very straightforward situation and a strong existing relationship with the lender. Some lenders also offer slightly different rates to direct customers at certain times, though brokers often have access to exclusive rates that are not available to direct applicants.

If you are confident in your ability to assess the market yourself, understand all the product features and their implications, and are certain of your eligibility with your chosen lender, going direct is a valid choice. Most people, however, benefit from having a professional in their corner.

Does using a broker cost more?

Some brokers charge a fee for their services, payable either on application or on completion. Others are paid by the lender through a procuration fee and do not charge the client directly. At Aspect Mortgages, we are transparent about our fee structure from the outset so you know exactly what to expect.

It is worth weighing any broker fee against the potential saving from accessing a better rate. On a £200,000 mortgage, the difference between a rate that is 0.2% higher and 0.2% lower over a two-year fixed period amounts to hundreds of pounds - often significantly more than a broker fee.

Will a broker always find a better deal than going direct?

Not always - but they will always search the market properly, which means you can proceed with confidence that you are not paying more than you need to. Even when a direct deal looks competitive, a broker can confirm whether it really is the best option available for your specific circumstances.

How Aspect Mortgages can help

The team at Aspect Mortgages are independent whole-of-market advisers, which means we work for you - not for any lender. We search the full market, assess your eligibility honestly, and recommend the most suitable deal for your situation.

To find out what is available to you, call us on 01257 812345 or visit our mortgages page. There is no obligation and no cost to an initial conversation.