19 June 2019

Beginners guide to mortgage advisors

Buying a home can be complicated to get your head around, which is why it’s important that you’re given the right advice along the way. Mortgage advice can be found in books and online, but the most reliable advice you can get is from a mortgage advisor. If you’re wondering what one is or how you can talk to one, keep reading and let us answer some of your questions!

What is a mortgage advisor?

A mortgage advisor (also known as an independent mortgage broker) assesses the level of mortgage repayments you can afford by looking at your income, debt repayments and day-to-day spending. They will carry out an individual analysis on your current situation and give you up to date, reliable advice on the type of mortgage you should get.

Why should I use a mortgage advisor?

It’s usually a good idea to seek mortgage advice when buying a new home, even if you’re a second stepper. Asking why? Take a look at the advantages:
1. Check your finances - A mortgage advisor will check your finances to ensure you can actually afford a mortgage. They will be realistic about what you can afford and be able to advise on your current situation.
2. Paperwork – They can help you complete your paperwork, answering any questions you may have and guiding you through each application. This will not only offer you help on your journey, but it’ll get the process done quicker. The quicker your paperwork is completed, the quicker it can be sent off and dealt with.
3. Exclusive deals – An independent mortgage broker might have deals with lenders that aren’t on offer anywhere else.
4. Best option for you – A mortgage advisor will recommend a mortgage that is suitable for you, and which ones you’re most likely to be approved for. They have your best interest at heart and should advise based on your individual situation.

What will happen if I don’t get any advice?

If you decide to do your own research as oppose to get professional advice from a mortgage advisor, you may be at risk of:
Being rejected by your lender – mortgage advisors can help with paperwork and helping you understand the T&Cs of the mortgage you’ve chosen. Doing it yourself could leave you in muddy water, especially if you don’t understand the restrictions clearly or what circumstances the mortgage was designed for.
Choosing the wrong mortgage – there are many different types of mortgages out there. You can read about the different types of mortgages here. So it’s easy to get confused with all the different shapes and sizes. What’s even more confusing is making sure you’ve chosen the right one for your current situation. If you do your own research, you can’t be 100% sure you’re getting your information from a reliable source.

When do I see a mortgage advisor?

It’s a good idea to seek mortgage advice right at the beginning of your journey (yes, before you’ve even found a house!). A mortgage advisor can assess your affordability and advise on how much you can afford.
Sometimes buyers can afford more than they think, which puts them in a better position when it comes to choosing their home.
Doing a general overall assessment of your affordability prior to finding a house will narrow down your home search, because you’ll know how much you can afford. If you choose your dream home, then get some financial advise afterwards and find out you can afford more, you might want to reconsider your choice. This will also pro-long the process.

Can I get mortgage advise from my bank or building society?

Usually, you can speak to your lender about mortgage advice. They know you and your current financial situation so they can use this and see which of their mortgages matches up to you best.
Plus, their mortgage advice is usually free!

How do I find a mortgage advisor?     

If you want an independent mortgage advisor, the best place to start is online. You can use comparison websites to find the best services and rates near you. It’s a good idea to read reviews and check for relevant professional qualifications such as from the London Institute of Banking & Finance.

How much does a mortgage advisor cost?

There is no set amount a mortgage advisor will charge, every one is different and some are even free. Those that are free will receive commission from the lender.  Those that charge, should tell you prior to taking any advise and provide you with a ‘Keyfacts’ illustration. A Keyfacts illustration is a document that outlines the details of a particular mortgage. It’s a good idea to ask your advisor to explain their mortgage service so you can ask questions and understand their service.