If you are thinking of buying a new home and seeking approval for a loan you may be finding the process difficult and stressful to manage. Perhaps you have even thought of looking for someone to help you with the process. That is where mortgage intermediaries step in to save the day and relieve some of the stress that goes along with trying to buy a home. But what exactly are these service providers, and why should I use a mortgage intermediary?
Mortgage Intermediary
A mortgage intermediary is a person or business licensed under the Consumer Credit Act of 1995 distinctly separate from other lenders and credit institutions, (Like our team here at Yes.ie). These businesses then perform duties for commission on behalf of their customers including:
- Arranging for a mortgage lender, (banks and other financial institutions), to provide their customers with a mortgage loan that is outside the scope of the European Union regulations, or
- Introducing a customer to another intermediary who then arranges for a mortgage lenders to provide the customer with a mortgage loan.
In order for a person to take part in the business of being a mortgage intermediary they must:
- Be authorised for the purpose of mortgage intermediation by the Central Bank of Ireland.
- Hold a letter of appointment in writing for every single undertaking they participate in as a mortgage intermediary.
Mortgage intermediaries are a useful service to take advantage of as a prospective home buyer. The process of getting a new home and applying for loans can be very stressful. Mortgage intermediaries simplify the process and generally relieve a lot of the stress and confusion you will feel during the process, especially if you are a first time home buyer.
Mortgage Credit Intermediary
Mortgage credit intermediaries are not the same thing as regular mortgage intermediaries, and perform different functions. Under the European Union (Consumer Mortgage Credit Agreements) of 2016 they are authorised to:
- Present and offer credit agreements to customers
- Conclude credit agreements on behalf of a creditor with customers
- Handling the preparatory work and pre-contractual administration associated with credit agreements on behalf of their customers
Certain mortgage credit intermediaries may also be authorised to to provide certain advisory services to their customer concerning credit arrangements by providing personal recommendations to consumers regarding transactions related to their credit agreement.
In order for a person to take part in the business of being a mortgage credit intermediary they must:
- Be granted authorisation for the purpose of conducting business as a mortgage credit intermediary by the Central Bank of Ireland.
- Hold a letter of appointment in writing for every single undertaking they participate in as a mortgage credit intermediary.