When it comes to buying property in London, sorting out a mortgage is one of the most important—and often stressful—steps in the process. With house prices in the capital sitting well above the national average, making the right decision on how you secure a mortgage can have a major impact on your finances for years to come.
So, should you go directly to a bank or work with a mortgage broker? Let’s break down the pros and cons of each, and explore what might work best in London’s ever-changing property market.
Going Direct to the Bank
The Traditional Route
Many buyers still approach their bank first when they need a mortgage. It’s familiar, it feels straightforward, and in some cases, it can be quicker—especially if you already bank with them.
What You Get:
- Access to that bank’s own mortgage deals.
- Possible preferential treatment if you’re already a customer.
- A more hands-on approach from bank advisors (though this can vary).
The Downside:
Banks can only offer you their own mortgage products. That means you’re not seeing the full picture. In a competitive and complex market like London, this could mean missing out on better rates or terms elsewhere.
Also, banks may not be as flexible when it comes to unusual circumstances—like if you’re self-employed, a first-time buyer with a low deposit, or buying a property with non-standard construction.
Using a Mortgage Broker
The Wider Market Option
Mortgage brokers act as intermediaries between you and lenders. They work with multiple banks and building societies, and some even have access to exclusive deals you won’t find on the high street.
What You Get:
- A wider range of mortgage options.
- Advice tailored to your financial situation.
- Help with paperwork and the application process.
- Access to specialist lenders if your situation is more complex.
Many brokers, especially those based in London, understand the quirks of the capital’s property market. Whether you’re buying a flat in a converted townhouse or a new build in Zone 2, they’re often better equipped to guide you through the process.
The Catch:
Some brokers charge a fee, though many are paid by lenders. It’s always worth checking upfront. Also, not all brokers are ‘whole of market’—some only work with a limited panel of lenders.
What Works Best in London?
London’s property market is fast-paced, competitive, and expensive. You’re often dealing with higher loan amounts, more complex income situations, and fierce competition from other buyers.
In this environment, flexibility and access to a broad range of mortgage products can make all the difference.
Why Mortgage Brokers Often Win in London:
- Better range of deals: You’re not stuck with one bank’s products.
- Speed and expertise: A good broker can get things moving quickly—crucial in London where delays can cost you a deal.
- Tailored advice: Especially useful if you have unusual income or are buying a less traditional property.
That said, if you have a strong relationship with your bank, and they’re offering a competitive deal, it’s still worth considering. Some buyers use both routes: they check with their bank and consult a broker to compare options.
FAQs
Yes, all mortgage brokers in the UK must be authorised by the Financial Conduct Authority (FCA). This means they’re legally required to offer advice that suits your best interests. Always check a broker’s FCA registration before working with them.
Not always. While some banks may offer competitive deals to existing customers, mortgage brokers often have access to a wider pool of lenders, including those offering exclusive or discounted rates not available on the high street.
Absolutely. Many brokers specialise in helping people with poor credit histories or complex financial situations. They can approach specialist lenders who are more flexible than mainstream banks.
It depends how far you go in the process. Initial enquiries and soft credit checks won’t harm your score. However, if a full mortgage application is submitted, a hard credit check will be carried out—just as it would be with a bank.
Not always. Some brokers charge a fee (either fixed or based on a percentage of the mortgage amount), while others are paid commission by the lender. Make sure to ask how they’re compensated before you agree to proceed.
In some straightforward cases, yes. But in London’s busy market, a good broker can often speed things up by managing paperwork, chasing lenders, and keeping your application on track—especially useful if you’re under pressure to meet deadlines.
Online brokers can be convenient and offer a good overview of the market, but local brokers often have better insight into London-specific property trends, regional lenders, and time-sensitive deals. If you’re buying in the capital, local knowledge can be a big plus.
Definitely. There’s no harm in shopping around. Speak to your bank and get a quote, then talk to a broker to see what else is out there. This way, you’ll be able to make a more informed choice and avoid missing out on a better deal.
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