Advantages of an Mortgage Advisor

A Mortgage Advisor acts as an intermediary who connects someone who wants to buy a financial product, such as a mortgage, with an appropriate provider. They are experts in their field and understand a lot more about the mortgage market than the average homebuyer, so getting their advice can be very beneficial.

There are many reasons that people choose to use a broker, whether they are first time buyers looking to get their first step on the property ladder or landlords with a property portfolio that they are looking to expand.

Getting a mortgage is one of the biggest financial decisions you’ll make, so it’s important to get it right. A mortgage adviser can search the market on your behalf and recommend the most suitable deal for your circumstances.

Why it’s usually a requirement that you get mortgage advice?

Mortgage advisers have a wide knowledge of the mortgages available from different lenders. They can search the market on your behalf and recommend the most appropriate deal.

To find these deals on your own involves a lot of research and talking through your circumstances many times with different lenders.

An adviser might also be able to find a deal you can’t find on your own. They can also improve your chances of being accepted for a mortgage as they’ll know which lenders are best suited to your particular circumstances.

This is particularly important if you don’t have a large deposit, haven’t been with your employer for long or if you’re self-employed.

Risks of not getting advice?

When you get regulated mortgage advice rather than doing research on your own, your mortgage adviser will recommend an appropriate mortgage for your needs and circumstances.

If the mortgage later turns out to be unsuitable for any reason, you can make a complaint. If necessary, you can take your complaint to the Financial Ombudsman Service. This means you automatically have more rights when you take advice.

Not getting advice means you have to take full responsibility for your mortgage decision.

If you don’t get advice, you could end up:

• with the wrong mortgage for your situation, which would be a costly mistake in the long run
• applying for a mortgage that doesn’t fit the lender’s lending criteria.

Other Reasons to use an advisor?

  • They’ll check your finances to make sure you are likely to meet the individual lender’s lending and affordability criteria
  • They might have exclusive deals with lenders, not otherwise available
  • They often help you complete the paperwork, so your application should be dealt with faster
  • They’ll help you take all the costs and features of the mortgage into account, beyond the interest rate
  • They should only recommend an appropriate mortgage for you and will tell you which ones you’re likely to get.

When to see a mortgage adviser?

It’s important to see a mortgage adviser at the start of your mortgage journey whether it’s your first mortgage or you’re looking to
re-mortgage. It will save you a lot of time and effort in the long run.

There are two main types of mortgage advisers.

Mortgage advisers connected directly to lenders usually only recommend mortgages from that specific lender.

Mortgage brokers, or financial advisers, who can look at a range of mortgages from different lenders. Some might even check the comprehensive range offering you a wider range of products.

It makes sense to choose a broker or adviser providing a ‘comprehensive range’ service. This means they can choose from the largest number of lenders and mortgages available.

However, even ‘comprehensive range’ advisers don’t cover everything and there are still some merits of going directly to the lender for your mortgage. Some lenders will have exclusive deals only available if you go to them directly which can help you avoid paying any up front broker fees.

Firms offering mortgage advice must be regulated and authorised by the Financial Conduct Authority (FCA). Details of all regulated firms are held on the FCA’s Register.