Mortgages: should I use a mortgage adviser?
19th Mar 2024 Property
3 min read
Looking to buy a property or planning to remortgage soon? A broker may be able to find the best deal for you and boost your chances of a successful application.
This
article looks at what a mortgage broker and a mortgage adviser does and if you need one. Seeking independent
advice can make the difference between a successful mortgage application
and being rejected.
It may also
lead to a better deal so that you save thousands of pounds.
What is a mortgage adviser?
A mortgage
adviser specialises in finding the best mortgage deal for your circumstances.
They are often called mortgage brokers, but there is no real difference between
an adviser and a broker.
One big
difference you need to consider is whether you use an independent mortgage
broker or a 'tied' mortgage broker.
While an
independent broker can source mortgages from the whole market, a tied one is limited
to certain providers, so may not be able to find the most competitive deals.
A broker is
usually a dedicated mortgage specialist, but some independent financial advisers (IFAs) also give similar
mortgage advice.
When should I seek advice?
If you’re a
first-time buyer, you have the most to gain from mortgage advice, as the
application may be more challenging and the process will be new to you.
However, a
mortgage broker can be useful for any mortgage application.
Other times
when you’ll benefit from expert advice include remortgaging, buying your next
home or a second property, especially if you need to borrow more.
An adviser can also find specialist
mortgages if you plan to buy-to-let, buy or a holiday
home. or
a holiday home.
Mortgage advice can also help
you tap into the value of your home in later life via equity release.
Use Unbiased’s mortgage calculator to find out how much you could
borrow, expected monthly payments and your loan to value ratio.
You can
also discover information about Islamic
mortgages.
What are the benefits of using a mortgage broker?
An independent mortgage adviser is not restricted to any providers and will act in your best
interests, so you should be confident the recommended deal is the best one for
your circumstances.
A mortgage broker
should:
- Outline the various mortgages available and different types of deals.
- Offer guidance on how much you can afford to borrow.
- Have access to mortgage deals not available on the open market.
- Help you prepare for your mortgage application.
- Be able to save you money by finding a mortgage with lower interest rates or fees.
An
unsuccessful mortgage application may impact your chances of success next time,
as each rejection will appear on your credit record.
Using a
mortgage adviser will boost your chances of being accepted the first time.
How to find a mortgage broker
While you
can do your own research to discover an adviser, there are two ways you can
easily find a mortgage broker on Unbiased.
The first
way is to use Unbiased’s Connect tool. You enter some details
about your circumstances and requirements, and its system will match you with
the nearest suitable adviser.
You should
get a match within 48 hours, although it’s often much quicker.
The second
way is to search and browse Unbiased’s directory.
You can enter
your postcode to see a list of mortgage advisers and the nearest ones to you. Also,
you can refine your search to find advisers with specialist experience or certain
qualifications.
What does it cost to use a mortgage broker?
Mortgage
brokers charge in several different ways.
While some
mortgage advisers charge a flat fee, others receive a commission from the bank
or lender providing the loan.
You should
discuss any fees at your first meeting with a broker, ask how they are paid, what
it will cost, and get a written quote.
Using a
mortgage broker should mean you spend less money over the long term, so get an adviser
explain to you how their fee is justified.
Your first meeting with your mortgage adviser
Before
your first
meeting with a broker, you should
use Unbiased’s online mortgage checklist to test the strength of
your mortgage application and discover what questions you may need to ask.
At your
first meeting, ask your adviser if they can source direct deals as these may
offer special rates or discounts.
If your
adviser recommends a mortgage, ask them to explain in detail why it is most
suitable. A good mortgage broker may offer useful tips and guidance during the
homebuying process.
Your advisor can quickly connect you with a qualified mortgage
broker who can
find the best deal and support you with your property goals.
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