Hi if we haven’t met before, my name is Dan, I am a CeMAP qualified mortgage & protection adviser. This video is purely for educational purposes only, and should not be seen as advice or a recommendation to act and I must stress your home may be repossessed if you do not keep up with the repayments on the mortgage.
So, whether you’re buying a property or just remortgaging, getting professional mortgage advice can be a great help, but often it comes at a cost.
Taking independent advice can make the difference between a successful mortgage application and being rejected. It could also result in making significant savings.
But what is a mortgage broker or mortgage adviser?A mortgage adviser is a professional who is qualified in finding the most suitable mortgage deal for your circumstances.
Often a mortgage adviser will be called a mortgage broker, but there is no real difference between an adviser and a broker.
The only significant difference you need to consider is between whole of market mortgage brokers and ‘tied’ mortgage brokers.
A whole of market mortgage adviser, like myself, can source mortgages from the whole UK market, while a tied one will be restricted to certain providers, so can only provide limited advice.
A mortgage adviser is usually a dedicated mortgage specialist, though some independent financial advisers also give the same kind of mortgage advice.
So when should you seek mortgage advice?If you’re a first-time buyer, then you are, usually more likely to benefit from having a mortgage adviser guiding you through the process.
For a couple of reasons really, the mortgage process can be daunting to you as it’s your first time obtaining a mortgage and, as the application tends to be more challenging it is useful to have an expert holding your hand through the process.
However, they can be useful for any kind of mortgage application. You may also need advice including remortgaging, moving home, buying an investment property to rent out or a holiday home.
So what are the benefits of using a mortgage adviser?A whole of market mortgage adviser is not restricted to any particular list of 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 about the different types of deals and rates available
Advise you on how much you can afford to borrow
Have access to mortgage deals that are not available on the open market
Prepare your mortgage application correctly to help your chances of being successful
And do their best to save you money overall by finding a mortgage with lower interest rates and fees
Also, most mortgage advisers are protection advisers as well. They will be able to recommend the appropriate insurances suitable for your needs.
I created a video here that shares the story of a fellow mortgage adviser and his journey. It’s worth watching and a reason why you should be willing to listen to any recommendations made by your adviser
How do you find a mortgage adviser?You’ve found one! Hello!
All jokes aside, if you do not wish to use me, speak to family and friends first, they may have their own adviser who they’ve used and trusted for years so they can recommend them.
You could look on Google, but make sure you read the reviews. There are some very good mortgage brokers out there, but there can also be bad ones so please make sure you research thoroughly before asking for help on potentially your biggest financial commitment ever.
If you’re moving, the estate agents will often have their own in-house adviser that they’ll recommend. Again, I’d recommend reading reviews.
What does it cost to use a mortgage broker?Mortgage brokers charge in a variety of different ways. Some mortgage advisers will charge an up-front 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, what it will cost you, and get a written quote.
Remember that using a mortgage broker should mean that you spend less money over the long term, so have the adviser explain to you how their fee is justified.
To save you ringing and asking me, I charge on completion of the mortgage. I charge a fee on completion as I feel it is justified for the time and care that I put into your application.
The first appointment with your mortgage adviserBefore your first appointment with a mortgage broker, you’ll want to be prepared to answer any questions they’ll ask, along with documentation they’ll require.
The majority of questions, you’ll know the answer to, such as date of birth, address, how long you’ve lived there etc.
But some can be a little more challenging and you want to be prepared.
If you’re meeting face to face with your adviser, make sure you have to hand your last 3 months payslips or 6 months if you’re receiving bonus, overtime or commission, you’ll want to take along 3 months bank statements and photographic ID too.
Another question you’ll be asked is what is your credit profile like? Do you have missed payments, county court judgements or defaults?
The best way to check this, is to carry out a credit report on yourself, I have created a video on this here and I’ve left a link in the description below.
At your first meeting, ask your adviser whether they can source direct deals as 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.
Just because they are the expert, it doesn’t mean you aren’t allowed to understand why the mortgage is most suitable to you. It is common practice now for all advisers to explain this but don’t be afraid to ask upfront.
A good mortgage adviser may also offer useful tips and guidance throughout the home-buying process, so be sure to find an adviser that’ll help you with this.
This is a topic I feel very strongly and passionate about, and I’m conscious I could waffle on for hours.
If you’ve found this video helpful, and you wish to buy me a coffee, I have put a link in the description below. But even more importantly, if you need help, please contact me!
To avoid making 10 of the most common mistakes when buying a home, watch this video.
Remember your home may be repossessed if you do not keep up with the repayments on your mortgage.
See you next week.