Who do you trust with your debt, your home, and your long-term financial health?
That’s a short list for most people – and sometimes it’s hard to trust yourself to make the right choice.
Mortgage advisers exist to simplify the process and take some of the administrative burden out of buying a property.
Today, we’re answering your big questions:
What is a mortgage adviser?
What does a mortgage adviserdo?
How and why do you get an adviser?
What should you look out for when choosing one?
By the end of this article, you’ll know if a broker or adviser is right for you – and what you’re looking for on the market.
What is a mortgage adviser?
A mortgage adviser is a financially trained broker who will analyse your current situation and help you negotiate a mortgage with a lender. A mortgage adviser does not necessarily work for the lender or bank – they are often independent specialists.
‘Whole of market’ mortgage advisers work as a 3rd party – paid by you – to provide realistic insight on lenders and offers. They can also handle some of the paperwork around applying for a mortgage and generally guide you through the process.
Many estate agents will offer an in-house mortgage adviser, but you are not required to use them.
The choice of a mortgage adviser comes down to personal preference and you may want to spend time reviewing your options.
What does a mortgage adviser do?
A mortgage adviser is there to provide you with an expert approach to lending applications. They offer qualified financialadvice to help smooth out your application process and find the best deal on the market for your situation.
This includes both contacting lenders for quotes and comparing those quotes for suitability. This includes a negotiation step that many borrowers might miss, as they lack the confidence and know-how.
While some people may shirk at paying an adviser’s fee, the work of an adviser can be valuable because of how complex mortgages can be.
Getting paperwork correct and securing the best possible deal for your situation can save a significant amount of time and money.
Just a 1% difference on a mortgage interest rate on a £250,000 mortgage adds up to £2,500 per year – and you might be paying your mortgage for 30+ years.
These are the broad strokes, however.
You will still have to spend time getting the right adviser and chasing up their advice. Consider your situation and if a mortgage adviser is right for you personally.
Preparing your application
Once you have a mortgage ‘product’ selected, the broker or adviser can help prepare your application in the most effective format for the provider.
This helps increase the odds of acceptance on your application – though this remains at the discretion of a provider.
This can be a helpful service above and beyond choosing an offering, as rejected offers can affect your credit score and take more time.
If you need to increase your likelihood of being accepted quickly, a mortgage adviser’s help preparing your application may be a real help, especially if you have a patchy credit history, multiple income streams, or any other kind of non-standard financial situation.
Of course, mortgage advisers also provide you with peace of mind regarding your paperwork. It’s easy to get bogged down if you have errors in your fillings or are missing any essential paperwork.
Paperwork for a mortgage could be anything from your initial application, agreement in principle, preparing your official documents, proving income and ID, and more.
These are all spaces where delays can get in ifyou’renot vigilant.
A mortgage adviser is one more professional in your corner to ensure things go smoothly.
Mortgage advisers can be particularly valuable for non-residential property purchases. Niche or specialist advisers can help commercial and rental property buyers get a better deal and ensure they’re approaching their applications from the right angle.
As with personal residential purchases, reviewing advisers to fit your situation is important.
For example, investing in a multi-billion pound skyscraper in the city of London will involve some legal and financial hurdles that demand a specialist!
Why do you need a mortgage adviser?
You don’t technically need a mortgage adviser – but they’re popular because they reduce the risk of human error in the mortgage search process.
As specialists, they’reup to date with lenders, rates,products and other technical information.
They know what they’re looking for, so they can save you time and money by comparing deals across the market.
Mortgage advisers can also answer many of your more situational questions about your specific circumstances and needs.
For many people, the purpose of hiring a mortgage adviser is “knowing it’s in good hands”. It can be daunting dealing with legal-financial paperwork, and the learning curve is too harsh for some people. Most people who use a mortgage adviser simply prefer to pay for the skills they offer, rather than spending the time to develop them.
Simply put, you don’t need a mortgage adviser the way you don’tneed a lawyer. In both cases, the DIY approach can just be a lot more time-consuming and risky.
Legal protection and complaints
One of the best protections afforded by hiring a mortgage adviser is buffering responsibility if your mortgage offer is below your expectations. You can complain about a mortgage adviser through official channels, which is not available to those who solicit and choose their own quotes.
This can be a legally important distinction, providing you with recourse if your mortgage product is unsuitable for you. Having protection under the financial Ombudsman is a great way to protect your capital – you may be able to reclaim your fees or, in rare cases, receive compensation from the FSCS.
Protections under law are a great benefit, though improper advice may still sour a mortgage negotiation through delays.Choose a mortgage adviser carefully.
How do I get a mortgage adviser?
Mortgage advisers are easy to get - you can typically reach out to a broker via the phone or email and book a consultation. These are professionals with a business to run – they are often eager for your business.
It’s easier than ever to get a mortgage adviser due to the amount of online or all-digital advice. Online mortgage brokers offer the same service through digital means and may be faster, but may also come with drawbacks (e.g. the ability to talk in person regarding serious issues).
Crucially, you need to make sure you’re getting the right professional for your situation…
Choosing a mortgage adviser
As with any field, mortgage advice professionals have different offerings and pros/cons. Before getting started, you should look out for some key factors.
Your broker or adviser should be FCA-accredited. If they’re not, they shouldn’t be practicing, and you should avoid them. Always ensure you’re working with an accredited professional.
Consider a whole-of-market (WOM) adviser. This means they work across the broadest spectrum of possible offers, rather than limiting to their personal collection of favourites. This can help you evaluate a broader range of offers and get a better mortgage comparison.
Type of fees: your situation could justify paying the flat fee, an hourly rate, commission, or a percentage. The important thing is making sure that your choice of adviser fits your situation.
Just like a mortgage, an adviser is a choosing process and you should take it seriously.
The right adviser may be able to save you money and time on your mortgage over the years, while the wrong one could potentially funnel you into a specific provider to suit their commission.
Take the time to shop around for advisers the same way that you would shop for mortgages. The two are closely related – and you want to make sure that you get the best service for your money, and the best mortgage on the back end!
How much does a mortgage adviser cost?
Mortgage broker fees vary, but typically come out around £400 - £1,000, with specialists costing significantly more.
As with most services, a mortgage adviser may bill per hour, or to cover the whole service with a flat fee. Most hourly rated brokers will provide an estimate to establish a price range.
Other brokers may use a percentage fee, based on the mortgage agreement you settle. This is typically 1% or under, but – again – becomes more expensive on larger or more specialist properties.
However in many cases, advisers and brokers won't cost the borrower anything because they get paid a commission from the lender (also known as a procurement fee).
This can be a convenient choice when you need professional advice but want to keep costs down.
Remember to always do the maths to get a clear picture of what you’re paying in fees.
In the infinite complexity of financial law, things can get murky. These are the most common questions we get about mortgage advisers – and they should clear up some of your own concerns about the process!
Do I Need A Mortgage AdviserTo Get A Mortgage?
No – you don’t need a mortgage adviser to get a mortgage – but they can help, especially for those who are short on time or want additional support.
This could be the first time buyer who wants to get everything right, the busy professional whose time is worth the fee, or a repeat buyer with a ‘hands off’ approach to the financials. Mortgage advisers fit many roles and – while they’re not necessary – they’re one of the more popular ways of getting a mortgage.
Weigh up the financial trade-off against the time cost of doing it yourself, and the possibility of saving money on your mortgage in the long-term.
Who Pays A Mortgage Adviser’s Fees?
For some advisers, you pay the fees, while others are paid on commission by the provider (“no-fee” mortgage advisers). Of course, it’s also possible that your adviser or broker is paid on both sides to offset their own risk and increase income.
There’s no one-size-fits-all approach to the ‘best’ fee structure. The benefits of a lower upfront cost in fees could be weighed against preferential treatment of certain providers or offers.
Take the time to get familiar with any broker’s incentives before making a decision. Cheaper fees or no-fee does not inherently mean a cheaper total mortgage experience – especially across a typical 30-year period.
Is A Mortgage Adviser Worth It?
A mortgage adviser can be worth the money if you are either uncomfortable performing the bid process yourself, have an incredibly busy lifestyle, or earn enough to justify the time-save on the fees.
Mortgage advisers are also usually a great choice for repeat or complex business. Those buying to let or mortgaging commercial property may benefit from the specialist skills and insider expertise associated with an accredited professional’s skills.
Mortgage advisers can definitely be worthwhile – but it’s a personal calculation. We can’t tell you if it’s worth it for you – so check your finances and priorities closely before making a decision.
Should I Use An Online Mortgage Broker?
An online mortgage broker or adviser may be the right choice for you if you find that the flexibility of the service is more valuable than face-to-face communications. Brokers often still have the same access to providers, and thus can offer a broad range of mortgages despite not being local.
Online brokerages have different priorities and processes both compared to ‘traditional’ advisers and across different brokers in the space. They are often faster and may have lower fees (due to their own lower costs).
On the other hand, traditional mortgage lenders offer greater in-depth discussion on specifics. Some advisers also come with a stronger reputation or access to specialist expertise – both of which can be essential to choosing the right adviser for you.
Can Mortgage Advisers Compare Quotes For Me?
Yes – a mortgage adviser’s main job is to solicit and compare quotes from providers, making them experts in comparing quotes. They will typically prepare a number of favourable quotes from providers and explain their benefits to you.
A good mortgage adviser will focus on outlining quotes and their pros/cons so you can make a personal, informed decision. This may involve a “best pick” recommendation but also a ‘panel’ of quotes with different strengths.
While an adviser can suggest quotes, they’re not actually responsible for choosing anything. You reserve the right to choose among them, or choose none, but the adviserwill still be able to charge.
Mortgage advisers aren’t necessary, but they can offer a reassuring service to streamline your buying process. Getting certified, trustworthy professional advice is a good thing – but you need to make sure it fits your budget – and get a suitable adviser for your situation.
As mentioned above, because your broker is a decision making factor in your financial product, you should treat ‘shopping’ for a broker with the same seriousness. Consider this as the stand-in for your mortgage choice, it can be a ‘make or break’ decision for your long-term financial health.
Our Mortgage Adviser Service
Special features of what we offer include:
Friendly telephone service from our expert mortgage advisers
Whole of market service - we work with most UK lenders
Access to leading market mortgage rates
Access to exclusive mortgage deals not available on the high street
Quick turnaround - speak to us today if you need to move quickly
We have lenders who will take into account previous defaults and missed payments
Looking to raise additional finance on top of your existing mortgage or buy to let mortgage? - we have access to a range of finance solutions
"The essence of the Fair Mortgages service is professional independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support.
Call us on 0117 403 4474
As your mortgage is such an important transaction, good advice is imperative.
Why Choose Us?
The Fair Mortgages Advisory Service
Fair Mortgages is a whole market, independent, mortgage adviser based in Bristol.
We can offer you specialist mortgage advice whether you want to find out about residential mortgage options or buy to let, or other forms of finance raising including bridging and self build.
Advantages of using an independent mortgage advisor
Whether you have never taken out a mortgage before, or you have had many finding and applying for a mortgage can be a daunting experience and it is important to get the best deal you can, after all in most cases mortgages are long term financial commitments lasting years.
If you approach one of the mainstream lenders directly and make an appointment to speak to one of their in-house mortgage advisors they will only be able to advise you on your suitability for the various mortgage products offered by that one lender, which may not be the best deal out there for you. An independent market adviser can recommend mortgages from a wide selection of different lenders so you are more likely to find the best product available.
Mortgage advisers can also be particularly helpful to people who may find it more difficult to secure a mortgage with a high street lender such as; the self-employed, contractors and those with adverse credit histories.
Who are Fair Mortgages Ltd
Fair Mortgages offer an independent whole of market mortgage service; this means in addition to giving you impartial advice and guiding you through every step of the application process, that our expert mortgage advisers can search over 5,000 mortgages from over 70 different lenders to find the best deals available to you from across the entire market. We also have access to a range of mortgages from specialist providers that borrowers can only apply for via a professional intermediary.
Our service guides you through every step of the mortgage process finding you the right product, taking into account things such as; your credit score, affordability and deposit, then taking you through an application to try and make it as fast and stress free as possible.
With offices in both England and Scotland we can offer you advice via telephone and email or face to face at our offices, whatever your preference.
If you want to find out if we could help you find the right finance option, you can fill in the online contact form to request a call back from one of our friendly advisers who will be able to provide you with a free initial consultation. Alternatively you can call us directly on 0117 403 4474
If you are just starting your initial search for a mortgage you may want to use our free comparison tool to see what might be available to you. You just need to enter the kind of home finance you are interested in and the relevant pieces of financial information, our service will then be able to filter a selection of products that fit your criteria so you can get an idea of what might be available to you.
If you are unsure about what mortgage product is suitable for you speak to our mortgage team on 0117 403 4474 or click here » to complete our enquiry form.