Why should I pay a broker fee for a mortgage?

“I’m only willing to pay little or no broker fee” is a phrase we hear quite often – and we understand why because it of course makes sense that self-employed people want to be savvy with their money. But choosing to use a mortgage broker who doesn’t understand the self-employed market isn’t, in fact, a savvy move – and here’s why..

At New Wave, we justify the fee that we charge because of the value that we’re able to add to your mortgage application – and the amount of money that we’re able to save you in the long-term undoubtedly supersedes our fee.

If you choose to go for a mortgage broker who is inexperienced and who doesn’t understand the self-employed mortgage market, you’re likely to end up paying a higher interest rate that, in the end, is going to cost you thousands and thousands of pounds more. So, while you may not pay a fee upfront, you’ll end up paying for it tenfold later down the line.

Not only will we ensure that you’re paying the lowest interest rate and getting the best mortgage deal possible – we’ll help you to maximise your income to get you the mortgage you want. In doing so, we’ll help you to save thousands of pounds in tax as well. If a self-employed mortgage applicant doesn’t speak to a specialist like New Wave (who understands exactly how self-employed people pay themselves) then, by the time they submit their tax return, they’ve already needlessly spent thousands of pounds.

Even if you might not even be interested in getting a mortgage just yet, it’s worth speaking to a self-employed mortgage specialist at the earliest opportunity. Obviously, every year – as a self-employed individual – you have to submit a tax return. And, if you’re a limited company, you’ve got to submit your accounts. Now, the fact that we give people advice straight away in terms of “okay, this is the best way for you to maximise your borrowing using your self-employed status”, means that, when it comes to their next tax return, they’re going to save money. And the way that they do that is by applying the strategy that we’ve recommended to make sure that when the time comes, they can get the mortgage they want.

If you’re speaking to us at the earliest opportunity, we’ll make sure that by the time you get round to doing your next tax return, you’ll know exactly what you’re filing, why you’re filing it, and how it’s going affect your mortgage loan amount. But it’s impossible to retrospectively go back and go: “Oh, I’m sorry about that last tax return – can I change it now?” It would be too late. You’ve already paid the tax on it. The horse has already bolted. So, it’s really, really key that you have that conversation with us as soon as possible.

At New Wave, our mortgages brokers will work – day in, day out – to help you find you the best mortgage deal. And our highly-skilled underwriting team will then carry out essential due diligence check to help you overcome any challenges that you’re likely to face with your mortgage application. So, why would you not want to pay a fee for that peace of mind – knowing that you’re going to get what you signed up for? You’re not going to find, at last knockings, that you’re not going to get the mortgage you wanted – all because you simply didn’t want to pay an initial fee.

I believe that New Wave provides tremendous value – and our fees are actually a snippet of the amount of money that you actually end of saving. You’ve got to think long term – that’s the key.