It is a reasonable thing to ask of anyone standing between you and a lender. Here is the case, and the limits of it.
Where it helps most
In markets where the lenders are many, specialised, and mostly invisible to the public. Commercial and short-term lending is exactly that: pricing is built around particular sectors and asset types, and a lender that is excellent on one kind of case will not want to know about another.
- Knowing which lender to approach first, which is largely knowing which will decline and not wasting a week finding out.
- Presenting a case the way an underwriter reads it, which changes outcomes more than people expect.
- Access to funders who do not deal direct at all.
Where it helps less
If you are a straightforward residential borrower with clean credit and an ordinary property, high-street pricing is competitive and publicly available. A broker may still save you time, but the gap is narrower and you should expect them to say so.
What to ask before you engage one
Three questions worth putting plainly, and worth being wary of vague answers to.
- How are you paid — by me, by the lender, or both, and how much?
- Is that fee payable regardless of outcome?
- Are you looking at the whole market, or a panel? If a panel, who is on it?
The honest summary
A broker is worth it when the market is opaque and the case is not standard. When it is neither, a good broker will tell you that, and the ones who will not are the ones to avoid.
This article explains how these products generally work. It is not advice, and it does not take account of your circumstances. Any figures are indicative market ranges at the time of writing rather than an offer. Speak to an adviser before acting on anything here.
