Most people buying a house need to arrange a mortgage or a loan to help cover the cost of buying a property. There are many different lenders and types of mortgage products to choose from, and the process can feel overwhelming. This is particularly true when you understand that the right mortgage deal could save you tens of thousands of pounds in the long run… while a poorly chosen product could cost you just as much.
This is where a mortgage advisor (also known as a broker) can help. These professionals keep up to date with the latest products and are perfectly placed to recommend mortgages based on your specific situation and requirements.
Unsure if you need one? Let’s find out more about what mortgage advisors do…
What does a mortgage advisor do?
Mortgage advisors can either be independent or tied (associated with a particular lender(s)). Advisors working in a bank, for example, will only recommend products from that bank while independent advisors will consider a broader range of products.
Whether independent or not, a mortgage advisor can:
- Talk about your house-buying goals
- Consider your financial situation to calculate how much you could borrow
- Select appropriate mortgage options for you and explain the pros and cons of each
- Help with your application
- Negotiate with the lender on your behalf re rates and terms
- Offer advice on repayment plans
- Ensure your application complies with all the relevant legal and regulatory requirements
Why use a mortgage advisor? What are the advantages?
Mortgage advisors usually charge a fee for their services so you might feel tempted to do without one. However, there are many advantages to seeking the professional advice and assistance of an advisor.
1. Qualified
To provide advice, a mortgage advisor must hold a recognised qualification approved by the Financial Conduct Authority. This reassures clients that they have a benchmark level of expertise and experience and their advice can be trusted.
2. Expert
Most people buying property don’t have much experience in this field and the mortgage processes and terminology can be confusing. Mortgage advisors deal with contracts, solicitors, conveyancers and estate agents every day and are perfectly placed to translate mortgage jargon and interpret fine print. You can be confident that forms are filled correctly, and your application process runs as smoothly as possible. Advisors can also help with less-straightforward situations e.g. bad credit, self-employment, or complex income streams.
3. Knowledgeable
Advisors keep up to date with the latest products available so can offer the most appropriate products to their clients. Often, they will select products the client may have never considered.
4. Exclusive
Some mortgage advisors have access to rates that are not available on the high street.
5. Time saving
You could spend days searching for the right mortgage and still be unsure you’ve got the best deal. An advisor will save you significant time and stress by taking on this responsibility.
What are the risks of not getting a mortgage advisor?
While many people choose to apply without a mortgage advisor, they risk missing the best option for them and their situation. They may overlook small-print information or misunderstand contracts; fill in forms incorrectly/fail to gather essential documents; spend more than necessary on repayments; and needlessly extend the process of securing essential funds.
Mortgage advisor fees
Sometimes, mortgage advisors will not charge a fee and instead receive commission from a lender when you sign up to their product. However, they will often charge you a fee for their services. This may be:
- An hourly rate
- A flat rate
- A percentage of the loan amount
Whatever mortgage advisor fees you pay, it’s possible to more than recoup the cost by getting the best mortgage and rates possible.
When should you see a mortgage advisor?
It’s a good idea to contact a mortgage advisor as soon as you’ve decided you want to buy a property. They will help guide the process from the start, calculating what you can afford and putting you in a position to make an offer when you’re ready.
Mortgage advisor Essex
Flagstone is the largest independent mortgage advisor in Essex and we offer expert advice on mortgages and protection throughout the UK. We treat every client as an individual and our qualified, experienced advisors take pride in helping clients find the right products while saving time and money.
Get in touch
If you’re interested in our mortgage advice services or have got any questions, we’d be delighted to help. Please don’t hesitate to get in touch with our approachable, knowledgeable team.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE