A broker or financial intermediary he is a professional who lends himself to look for the best mortgage offers and to negotiate with the banks to obtain conditions that favor the interests of his clients. In the case of debt consolidation, its role is important, given the complexity and transcendence of the process.
These intermediaries can be self-employed or be part of a company, such as Broker’s Finance ( BKF ), for example. There are hundreds of broker cabinets in Spain, and they usually work quite localized in provinces or specific cities.
Advantages of hiring a broker in the process of debt consolidation
If we hire a broker, we will get clear benefits:
- He is a professional who knows very well the logic of the lenders and has experience in the negotiation of operations such as the reunification of debts. It is very likely that you get a good offer with better conditions than we would get without your help
- It will not charge anything if we do not sign the new mortgage, either because it has not gotten the bank to accept or because we do not agree with the conditions it has achieved.
Cost of hiring a broker in the process of debt consolidation
Two factors must be taken into account when assessing the cost of a broker:
- Their fees usually range between 1% and 5% of the total value of the new mortgage
- Your rates are not subject to any regulation. This makes it vital to request a forecast of expenses before closing the agreement, to avoid unpleasant surprises
Final considerations on the role of the broker in the consolidation of debts
Hiring a broker is a good option if we do not have extensive knowledge about lenders or if we do not have a great negotiating capacity. Although it charges a commission, its role can be decisive when it comes to getting good conditions for our mortgage, which translates into significant long-term savings. In addition, we must remember that if we do not finally sign the mortgage, the broker will not charge us anything, so if the conditions of the offer are not as expected, we will not have lost money for trying.
If you are interested in the reunification of debts, we offer you our articles on the subject:
Debt consolidation: reunify debts to reduce the quota
Debt consolidation: process and tips on reuniting debts
Reunify debts: how much does it cost? A practical example of debt consolidation
If, after reading this article, you are still interested in reuniting your debts, do not hesitate to use our advisor on debt reunification. Let DeDebt guide you in debt consolidation process.