Mortgage broker's and the FSA - If you need a mortage then chances are you will find it difficult to find a mortgage broker. The introduction of the FSA and the cumbersome bureaucratic regulatory procedures they have imposed upon brokers has acted to serve as the death knell for all but a few. Gone are the days when the banks relied so heavily upon the business mortgage brokers introduced to them.

A mortgage broker's role - A mortgage broker acts as a middleman between you and the company, (usually a bank or a building society) selling the mortgage to you. The mortgage broker may not even work for the mortgage company but will receive a commission upon completion of setting up your mortgage.

Selection - You need to be ultra careful in selecting a mortgage broker as they may not always have your best interests at heart. Because they will get varying commissions from the mortgage companies they may steer you towards a mortgage that is wrong for you, but right for them.

Sub prime chaos - Of course not every mortgage broker is unscrupulous but they arguably played a significant role in the current credit crunch due to the sub prime mortgage debacle. There used to be rich pickings amongst the poor as they paid over the odds for their mortgages with a fat commission going to the mortgage broker.

Greed - Mortgage brokers were pushing people to lend beyond their means for no other reason than greed. Their commissions were coming thick & fast but the sub prime mortgage market was about to come crashing down. Leaving the rest of us to pick up the tab through higher taxes.

The Mortgage broker could be the answer - Yes despite all the negative comments I have made about the mortgage broker they could be the answer. The answer to what you may well ask? Getting you a mortgage deal! The mortgage broker with experience knows exactly how to present an application to a lender to get approval. I'm not talking about manipulation but with the rapport a mortgage broker can build with the lenders underwriters can be the difference in securing you a mortgage.

Do not under estimate - The power or influence a good mortgage broker can have on a mortgage application. Sometimes a mortgage lender sees things as black or white and certain criteria must tick all of the boxes. Whereas a mortgage broker who quite often spends much more time with his client than does a mortgage lender can in a way act as a reference or testimonial for the client. By taking the time to research the full financial history of a client a mortgage broker can by merely submitting a mortgage application be seen as giving their approval that the application is worthy of a mortgage.

Commissions - Despite the rhetoric in my book The Mortgage Bible (free download only on this site) there are some mortgage broker's who are honest decent people. A decent mortgage broker will only charge you a realistic commission and the commission could be offset by the savings the broker makes you with a good mortgage deal. Think about it!