Whether you are purchasing your first house or are looking for a remortgage, mortgage advice can be a great help.
Taking independent advice can make the difference between a successful mortgage application and being turned down.
It may also lead to a better deal, potentially saving you thousands of pounds over the mortgage term.
Remember you can find your local mortgage broker by searching on the YELLOWTOM app where you can find all the leading experts in your community.
WHAT IS A MORTGAGE ADVISER/BROKER?
A mortgage adviser is a qualified professional who specialises in finding the most suitable deal for your circumstances.
Often they will be called mortgage brokers, but there is no real difference between an adviser and a broker.
The only significant difference you need to consider is between independent mortgage brokers and ‘tied’ mortgage brokers.
An independent broker can source mortgages from the whole UK market, while a tied one will be restricted to certain providers, so may not be able to find such good deals.
WHEN SHOULD I SEEK MORTGAGE ADVICE?
If you’re a first-time buyer, then you have the most to gain from mortgage advice, as the application tends to be more challenging (and the whole process will be new to you).
However, a mortgage broker can be useful for any kind of application.
Other times when you may need advice include remortgaging, buying your next home or an investment property, especially if you need to borrow more.
An adviser can also find you the special mortgages you’ll need if you want a buy-to-let, a business property or a holiday home.
Mortgage advice can also help you tap into the value of your home in later life through equity release.
An independent mortgage adviser is not restricted to any particular providers and will act solely in your best interests.
You can, therefore, be confident that the deal they recommend will be the best available mortgage for your circumstances.
A mortgage adviser should also:
Explain the various mortgages available and the different types of deals
Advise you on how much you can afford to borrow
Have access to special mortgage deals that are not available on the open market
Help you prepare for your application to boost your chances of success
Be able to save you money overall by finding a mortgage with lower interest rates and fees
Remember that every unsuccessful mortgage application may harm your chances of success next time around, as each refusal will appear on your credit record.
Using a mortgage adviser will maximise your chances of being accepted the first time.
WHAT DOES IT COST TO USE A MORTGAGE PROVIDER?
Mortgage brokers charge in a variety of different ways.
Some mortgage advisers will charge an upfront flat fee, while others will take a commission from the bank or lender providing the loan.
Be sure to discuss fees at your first meeting with the broker. Ask how they are paid and what it will cost you and get a written quote.
WHAT WILL HAPPEN AT YOUR FIRST MEETING WITH YOUR MORTGAGE ADVISER?
At your first meeting, ask your adviser whether they can source direct deals (these may offer special rates or discounts).
If your adviser recommends a particular mortgage to you, ask them to explain in detail why this deal is most suitable for you.
A good mortgage adviser may also offer useful tips and guidance throughout the home-buying process, so be sure to find an adviser with whom you get along well.