The mortgage market is extremely competitive having different providers and a wide range of products and rates available. It is crucial to your bank, as well as a number of independent mortgage advisors, before making a firm decision. Getting a mortgage is one of the biggest financial decisions and it is crucial to get it right. This guide will walk you through the routes for getting a mortgage advisor and how your bank might help. Understand the importance of considering other options before determining a mortgage advisory.
Why is it a good idea to get mortgage advice?
Before offering advice about the mortgage, the lenders(usually banks) and brokers assess the level of mortgage repayments you can afford. They analyze your income as well as your debt repayments and day-to-day spending. This is how you will end up with a mortgage that suits your needs. You can choose to accept or reject the advice of lenders/brokers and find your own mortgage deal based on your own research. This is known as an “execution-only” application.
- They will look into your finances to make sure you can afford a mortgage.
- They have exclusive deals with banks/lenders which otherwise are unavailable.
- Your application is dealt with faster since they perform all the paperwork for you.
- They will instruct you about all the costs and features of the mortgage beyond the interest rate.
- They will guide you about the mortgages you are likely to get.
When to seek help from a mortgage advisor?
A mortgage advisor also referred to as an independent mortgage broker, is a professional having in-depth knowledge of the market. They will examine the range of mortgage products that suit your needs.
There are three main types of mortgage advisors:
- Some are tied to a specific lender
- Some look at offers from a limited list of lenders, and
- Some check for a wide range of products in the whole market
All mortgage advisors offer you advice when recommending the most suitable mortgage. Therefore, you’re protected and can complain to the Financial Ombudsman if things go wrong.
What are the risks involved in not getting a mortgage advisor?
Getting advice, rather than doing your own research means that if the mortgage turns out to be adverse you can turn on or complain to someone. Otherwise, you have to take full responsibility for your mortgage decision.
What are the benefits of mortgage advice?
An independent mortgage advisor will perform all the work for you like:
- He will learn about your personal circumstances, earnings, outgoings, and deposit and then calculate your affordability.
- He will search through available mortgages to find the cheapest rates/ fees and matching to your needs.
- Notify you with the deals that are most likely to be approved.
- Guide you through paperwork and make sure it’s completed correctly.
- Deal with the lenders on your behalf about any problems that could cause unnecessary delays.
- Advise you on relevant financial products alongside your mortgages such as life or home insurance
There are independent financial mortgage advisor magazines dedicated to mortgage intermediaries. These magazines cover investments, mortgages, pensions, insurance, regulations, etc. Read breaking mortgage news and leading mortgage analysis from the top mortgage journalists. Keep your eyes upon the news and business intelligence for mortgage and finance brokers statewide.