DO YOU NEED A MORTGAGE ADVISOR TO HELP?
You can have a mortgage adviser guide you to the best type of mortgage for you. Learn all about their pros and cons as well as what questions you can ask them.
Many borrowers in the UK use mortgage advisors to arrange their mortgages. According to research from The Council of Mortgage Lenders (CML), around two-thirds of home loan arrangements are made through an adviser.
As the name suggests they will help you decide which type of mortgage is best for your situation. They will review your situation to help you determine which lenders may be most likely and willing to consider your application.
A mortgage broker (also known as a mortgage adviser) will determine the maximum amount you can borrow from various lenders. They also help you choose the best product for you. A mortgage adviser can help you choose the best fixed-rate buy to let mortgage for you if your risk tolerance is high.
How Does A Mortgage Advisor Make Money?
There are two main ways that mortgage advisers make money.
Lenders pay some brokers a procuration fee’ when they open a case. This is essentially commission and generally equals 0.3% of the total amount of the mortgage that you are taking out.
Other mortgage advisers charge fees for their services. This fee will vary depending on the adviser you choose. The fee may be fixed or proportional to the amount you borrow. They will also get a commission from the lender.
The Pros/Cons Of Using An Adviser To Mortgage
Independent mortgage advisors may offer a wider selection of lenders and mortgage options. You have access to almost all products, not just those offered by lenders.
Due to their knowledge of the various criteria used in lending, mortgage advisers can be very helpful for those with more complex arrangements.
Even if you don’t have any complicated circumstances, a mortgage consultant can help determine which product is best for you.
A mortgage adviser can assist you in navigating the process and help you with any delays. They may also be able to help you arrange protection such as life insurance, critical sickness, or unemployment cover to help you or your loved one keep your mortgage payment on time.
However, it may be more expensive to use a mortgage broker that charges a fee. Confident borrowers may find the right loan without the assistance of an adviser.
A few advisers may only have access to a select number of lenders. These advisers will only recommend products that are offered by these lenders.
What Should You Ask Your Mortgage Advisor?
Before you sign up for their services, there are a few things you need to know.
What is the cost of your advice? Be sure to find out exactly how much you will pay and when. You might be asked if you are still responsible for paying if your house purchase is canceled.
What number of lenders do your clients work with? A whole-of-market broker works with all creditors, not just those on a particular panel.