When seeking private mortgage finance, should you use a broker or go direct to lenders? Here's the complete comparison.
What is a Private Mortgage Broker?
A private mortgage broker specializes in connecting borrowers with private lenders (non-bank lenders), particularly for situations banks decline.
What They Do:
- Assess your situation
- Match you with suitable private lenders
- Submit applications on your behalf
- Negotiate rates and terms
- Manage the application process
- Usually free (lenders pay them)
Benefits of Using a Private Mortgage Broker
1. Access to Multiple Lenders
- Brokers work with 10-50+ private lenders
- You access their entire panel
- Increases approval chances
2. Time Savings
- One application instead of many
- Broker does the research
- Handles multiple quotes
3. Expert Matching
- Know which lenders accept what
- Avoid wasting time on wrong lenders
- Pre-screen before applying
4. Better Rates
- Lenders compete for broker business
- Brokers negotiate on volume
- May get better deal than going direct
5. Application Management
- Handle paperwork
- Chase lenders
- Manage timeline
- Problem-solving
6. Usually Free
- Lenders pay broker commission
- No cost to you (usually)
- Sometimes small application fee
When to Use a Private Mortgage Broker
Use a broker when: ✅ You're new to private lending ✅ Complex situation (multiple issues) ✅ Don't know which lenders to approach ✅ Want to compare multiple options ✅ Don't have time to research ✅ Want expert guidance
Go direct when: ✅ You know specific lender you want ✅ Previous good relationship with lender ✅ Very simple, straightforward deal ✅ Urgent (broker adds time)
How to Choose a Good Private Mortgage Broker
Look for: ✅ Specializes in private lending (not just banks) ✅ ACL or works under licensed aggregator ✅ Good reviews/references ✅ Transparent about fees and commission ✅ Explains options clearly ✅ Access to 20+ private lenders minimum
Red Flags: Upfront fees before approval Only work with 1-2 lenders Pressure tactics Won't disclose commission No credentials/licensing
Ready to connect with private mortgage specialists? Connect with private mortgage brokers and lenders.