Mortgage advice – Should you get a mortgage adviser?

 

Mortgage advice — Should you get a mortgage adviser?
Getting a mortgage is one of the biggest financial decisions you’ll make, so it’s important to get it right. This guide will help you work out whether you should get a mortgage adviser, where to get free advice, how your bank might be able to help and which comparison
How to choose a mortgage
The mortgage market is incredibly competitive and it can be hard to understand what exactly is on offer.

There are many different providers and a wide range of products and rates available.

So it’s a good idea to talk to your bank, as well as a number of independent mortgage advisors, before making up your mind.

This guide will take you through the routes to getting a mortgage and the importance of studying your options before making a decision.
Why it’s usually a good idea to get mortgage advice
Lenders (usually banks) and brokers must offer advice when they recommend a mortgage for you.

Risks of not getting advice
Getting advice, rather than doing research on your own, means that if the mortgage turns out to be unsuitable for you later on, you’ll have more rights when you make a complaint.

For example, you could make a complaint of financial mis-selling if the advice you were given turned out to be unsuitable for you.

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

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

find a mortgage With the wrong mortgage for your situation, which would be a costly mistake in the long run.

Being rejected by your chosen lender, because you didn’t understand the restrictions clearly or what circumstances the mortgage was designed for.
Speak to your bank or building society
This is a good starting point, as they know you and your financial situation.

They’ll tell you about their own mortgages, so do see how their products stack up against the competition before making a final choice.

Their advice is typically free.

When to see a mortgage adviser
A mortgage adviser, also known as an independent mortgage broker, is a specialist with in-depth knowledge of the market.

They’re able to look at a range of mortgage products which suit your needs.

It’s a good idea to speak to a few of them to see what’s on offer.

There are three main types of mortgage adviser:

Some are tied to a specific lender
Some look at deals from a limited list of lenders, and
Some check the whole market for a wide range of products
Even ‘whole of market’ advisers don’t cover everything.

They can’t advise you on mortgages that are only available if you go to the lender directly.

All mortgage advisers must offer you advice when recommending the most suitable mortgage for you.

This means you’re protected and you can complain to the Financial Ombudsman if things go wrong.

They’ll assess the level of mortgage repayments you can afford, by looking at your income as well as your debt repayments and day-to-day spending.

This means you should end up with a mortgage that suits your needs.

Although lenders and brokers must offer advice in almost all cases, you might be able choose to reject the advice and find your own mortgage deal based on your own research.

If you choose your own mortgage without advice it’s called an “execution-only” application.
Other reasons to use an adviser
They’ll check your finances to make sure you can afford a mortgage
They might have exclusive deals with lenders, not otherwise available
They often complete the paperwork for you, 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 a mortgage that is suitable for you and will tell you which ones you’re likely to get.