Buying a property is likely to be the biggest investment in a person’s life, and the associated mortgage will be the biggest loan a person will ever take out.
With a minefield of different products and lenders out there, it makes complete sense to seek the help of an expert in this field.
In this article, we clarify exactly what a mortgage adviser is and the benefits of using one.
Read on to find out more or click a link below to jump to a chapter of your choice.
Chapters
- What Is a Mortgage Adviser
- Different Types of Adviser
- Are Mortgage Advisers Regulated?E
- Do Mortgage Advisers Charge a Fee?
- Advantages of Using a Mortgage Adviser
- Other Services Advisers Offer
- Get in Touch
What is a Mortgage Adviser?
A mortgage broker/adviser is an intermediary who will help you to find and arrange a deal on your mortgage.
The advice they give is tailored to your individual needs and circumstances.
After having a detailed conversation with them about your personal and financial situation they will research the most suitable mortgage product for you.
They will take account of your outgoings and income and then tell you what size loan you will be able to get, and with which lender (it’s quite amazing how different a lender’s lending criteria is!).
They will look at how much you can afford in terms of monthly repayments, and make sure you do not overstretch yourself.
There are different types of mortgage advisers, and they differ on the range of deals they are able to access and the level of advice they are able to offer.
Different Types of Adviser
Did you know there are different types of mortgage adviser? They can include:
Tied Mortgage Adviser
Only offer mortgages from a single lender. i.e when you go into a bank’s branch and speak to an internal adviser.
They will know about that lenders full range of products but will not advise on other (perhaps cheaper) lenders at all.
Multi-Tied Mortgage Broker
This type of adviser will have a panel of lender that they will use, thus having more scope than a tied mortgage adviser.
Whole of Market Mortgage Adviser
This adviser is not restricted by any one lender.
They will look at the whole market across all lenders and products available, to get you the most suitable deal (not including any deal’s you may get by going directly to a lender).
In general, whole of market mortgage brokers will be your best option.
They are able to find you the best deal on your mortgage by comparing all of the options made available to them without being restricted to certain products or lenders.
Are Mortgage Advisers Regulated?
All Mortgage Advisers are regulated by the Financial Conduct Authority.
When an adviser gives you advice on taking out a mortgage, this is financial advice and is monitored and regulated by the above body.
All advisers are required to have specific qualification’s and training to ensure they are adequately knowledgeable on all areas they are providing advice on.
They are required to follow a strict duty of care to clients, to ensure they are providing them with suitable advice.
On all regulated mortgages (i.e mortgages for a property you will be living in), you can seek financial redress and make a complaint if you have been given unsuitable advice, and you experience negative consequence’s from following this advice.
Do Mortgage Advisers Charge a Fee?
Some Mortgage adviser’s charge a fee for their services and receive commission from the lenders.
Others offer a 'fee free' service and will only receive commission from the lender.
This is more common for the larger adviser firms.
Either way an adviser is required to be upfront on their fee structure and explain this in their first contact with you, and certainly before you sign up to use their services.
You will also need to sign a document called an authority to proceed.
This will highlight any fees payable, and how the adviser will be paid.
Advantages of Using a Mortgage Adviser
There are many advantages to using a mortgage broker such as:
- • A broker has access to lots of different mortgages, including some which you might not be able find anywhere else, saving you the time and hassle of approaching lots of individual lenders to see what they offer.
- • A broker will have the experience, connections and technology to assess your financial situation and compare the different mortgage products and deals available and recommend a loan option that's right for you.
- • A broker will be able to suggest which lenders will be most likely to approve your application, removing the risk that you will damage your credit history by getting multiple applications rejected.
- • A broker will have in-depth knowledge of the habits and anomalies of different lenders.
- • A broker deals with lenders on a day-to-day basis – they'll know what the application process is like for each one and which lender can process things with minimal delays.
- • A broker may put a lot of business to a lender which means they can exert influence and chase things in a way you just can't do by yourself – and that can be invaluable should things get held up.
- • A broker isn’t on the lender’s side, they’re on yours.
Other Services Advisers Offer
Most people are unaware that mortgage advisers can offer a full assessment on your protection needs.
This includes looking at your income protection, critical illness and life protection cover.
They will look at your current level of debt exposure, lifestyle and family circumstances and will work with you to match your protection requirements as close to your budget as possible.
Get in Touch
If you would like to discuss your mortgage or protection options get in touch with us to arrange a no-fee consultation.
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Introducing Cormorant Mortgages
Disclaimer: Cormorant Mortgages does not provide advice in relation to savings and investments. This article is intended for discussion only and does not propose financial advice in any way, and therefore should not be construed as such. Your property may be repossessed if you do not keep up with mortgage repayments. You may be able to obtain cheaper deals by going direct to a lender.