Mortgage advice is essential. Choosing a mortgage is one of the biggest financial decisions you are likely to make. There are thousands of mortgage deals out there, so how do you choose the right one for you? From the many different providers to the extensive range of products and rates available sourcing a mortgage can be very complex.
Mortgage Advice
Lenders and brokers must offer advice by recommending the most suitable mortgage for you. A Mortgage Adviser will assess the level of mortgage repayments you can afford, by taking into account your income unsecured debt repayments and various outgoings.
If you choose your own mortgage without advice it’s called an “execution-only” mortgage application. Getting mortgage advice rather than on an execution-only basis means that, if for some reason the mortgage turns out to be unsuitable for you later on, you’ll have more rights when you make a complaint.
If you don’t take advice you could end up:
- 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 mortgage criteria. Too many credit searches by multiple finance companies can have an adverse affect on your credit rating.
Talk to a mortgage advisor
A mortgage adviser, also known as an independent mortgage broker, is a specialist with in-depth knowledge of the market. They are not restricted to one Bank’s mortgage products.
Mortgage brokers might charge you for their service depending on the product you choose or the value of the mortgage. Others will be free to you but they’ll receive commission from the lender.
They should tell you up front how much you will pay for their services. You should also be told if an adviser is paid commission. Once your broker makes a product recommendation they must give you a mortgage illustration document usually called a KFI – Key features Illustration
All mortgage advisers must offer you advice when recommending the most suitable mortgage for you. This means you are protected and you can complain to the Financial Ombudsman should the advice be unsuitable which results in a financial loss.
using a Mortgage Broker
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- They help you take all the costs and features of the mortgage into account
- They may have exclusive deals with lenders, not otherwise available
- They’ check your finances to make sure the mortgage is affordable
- They should only recommend a mortgage that is suitable for you
- They will complete the paperwork for you, so your application should be dealt with faster
- They are regulated by the FCA – Financial Conduct Authority
- They offer appointments outside of normal working hours for your convenience.
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Best Mortgage Brokers 