With all the price comparison websites out there, how does a mortgage adviser add value?
Getting a mortgage is time consuming and complex
The interest rate is the most visible part of any mortgage but to find the best deal isn’t as simple as looking for the lowest advertised rate. A loan with a lower interest rate but higher fees may end up being more expensive.
It can take a long time to evaluate this information but a mortgage adviser can use a sourcing system that can sift out the mortgage relevant to your needs. For example you may wish to filter out mortgages that:
- Have no upfront fees.
- Over a 5 year fixed term period have the lowest interest rate and fees added together.
- Are suitable for self employed borrowers.
Mortgage advisers are qualified and regulated
When you receive mortgage advice from an adviser, your mortgage broker has a duty of care to you which means they have to recommend a suitable mortgage and be able to justify why that mortgage is right for you. They are regulated by the Financial Conduct Authority and have to prove they have given you best advice by ensuring your mortgage is affordable and most suitable for your circumstances. On the other hand, if you go straight to the high street and take no advice, the mortgage will be affordable but not necessarily the best for your circumstances.
Mortgage advisers use a budget planner to ascertain affordability and this will also be used when applying for your mortgage.
A mortgage adviser is representing you
The mortgage adviser is representing you, not the lender. If the application gets held up, the mortgage adviser will know the best way the chase and who to speak to at the lender.
Mortgage advisers understand the lender's criteria
A mortgage adviser will have regular contact with a wide selection of lenders, (some you may never have heard) and an adviser will be familiar with their criteria and be able to relate it to your circumstances. For example:
- An adviser will know which lender would be more suitable if overtime or bonuses are important.
- If you haven’t been in your job long an adviser will point you in the right direction.
- An adviser will be able to help if you have adverse credit history for example, debt management order, defaults, CCJs and missed loan and mortgage payments.
- If a speedy application is needed a mortgage adviser will know which lender can process the mortgage with minimal delay.
- A broker will can advise if a lender has restrictions on certain property types such as non standard construction, short leases, high rise properties etc.
An adviser completes the application for you
Completing a mortgage application can be time consuming and confusing if you are not used to it. A mortgage broker will understand the exact meaning of each question, how to answer it and what evidence is acceptable. This saves you time and more importantly minimises the chance of an application being rejected, thus avoiding unnecessary credit searches. Mortgage advisers have access to secure encrypted systems so you can be confident of the security of your information.
An adviser has access to exclusive deals
Mortgage advisers at Dorset Financial Planning (Bournemouth-mortgage-broker) have access to exclusive mortgages that are not offered directly to customers.
Make sure that once you have your home, you can stay there whatever life throws at you
Any conscientious mortgage adviser will ensure that should the worst happen, you and your family can stay in your home and maintain a standard of living you have come to expect. An adviser will have access to a range of protection products to help you plan for the worst that life can throw at you such as death, cancer, heart attack, stroke, incapacity.
Always use a mortgage adviser who has a solid background and a good reputation.