What Does A Mortgage Advisor Do?

Mortgage adviser

August 2022

What Does A Mortgage Advisor Do in 2022

If you are trying to buy your dream home and are beginning the research necessary for taking out a mortgage, the variety of options and the complexity of the application process can seem overwhelming. You may be wondering where you ought to begin in your search for a loan. 

If this describes how you’re feeling right now, then finding a mortgage financial adviser to talk to might be a good idea.

However, there are also fees associated with seeking mortgage advice. Some people prefer to go it alone or find alternative repositories of mortgage advice before they take out a mortgage to minimise the overall cost. 

This article will explain what a mortgage adviser’s role is, what the risks of not using one might be, and how you go about finding the right adviser for you.

Choosing an adviser is an important decision, but it doesn’t have to be a difficult one. By following the tips in this article, you can be sure that you find the appropriate service for you and your circumstances and needs.

Topics that you will find covered on this page

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What is a mortgage adviser?

A mortgage adviser assists clients in obtaining mortgages. To qualify in the United Kingdom, you must be a fully qualified specialist who is both authorised and regulated by the Financial Conduct Authority (FCA). 

They work with lenders of mortgages to achieve the most acceptable possible mortgage deal for their customers. Advisers have a thorough knowledge of the workings of the mortgage market and can offer personalised suggestions on which products are ideal for them.

They will be able to help you find the right mortgage for your needs and can provide answers for any questions you have, and help you understand crucial things like how much you can borrow. 

Providers of mortgage advice are a valuable resource and can save you a lot of time and money.

Why should you use a mortgage adviser?

There are various reasons that might motivate you to consult an adviser.

Saving time

Deciding to talk to a mortgage financial adviser can help you save a lot of time and effort when you begin looking for a mortgage. 

A good adviser will have extensive knowledge of the industry and be able to locate you the most appropriate deal for your particular circumstances, your preferred interest rates and your ability to make repayments.

Impartial advice

An adviser can offer impartial advice on which products are suitable for you. They are also experienced in dealing with lenders and can negotiate on your behalf to get you the best terms possible.

Support throughout the process

A mortgage adviser will provide guidance and support throughout the entire process, from start to finish. They will be at your side every step of the way, ensuring that everything runs smoothly. 

Advisers are also regulated and accountable throughout the entire process: if the mortgage later turns out to be unsuitable for any reason, you can make a complaint through the Financial Ombudsman Service.

At what stage of the process should you seek out a mortgage adviser?

As soon as you start considering taking out a mortgage, it is a good idea to speak to an adviser. They will be able to provide you with guidance and support from the very beginning of the mortgage process and help you figure out crucial things like how much you can borrow and what type of property might be appropriate for you.

What are the risks of not getting an adviser?

Without the guidance of a professional, it can be very easy to become overwhelmed by the vast amount of information that is out there. There are several risks associated with deciding not to talk to an adviser.

Not getting the best deal

You might not be aware of all the different mortgage products available on the market, and as a result, without the help of an expert, you may not be able to find the best deal possible with optimum interest rates. A good mortgage adviser will have extensive knowledge of the market and will be able to find you the most competitive rates.

Making mistakes

The process of taking out a mortgage can be complex, and there is a lot of paperwork involved. 

If you are unfamiliar with the process of applying for a mortgage, you may make mistakes that could cost you in the long run by delaying your application or even lead to your application being rejected.

independent mortgage adviser

Missing out on essential details

If you do not have someone who can guide you through the process, you might miss out on important details. A mortgage adviser will make sure that you are fully aware of all the requirements and will keep you updated on the progress of your application throughout the entire process.

Are there any reasons not to use an adviser?

Probably the only real reason not to seek mortgage advice is if you are confident that you can find a mortgage without one. However, it is generally advised that you seek professional guidance, even if you are experienced in the world of finance.

Other reasons to not use a service like this are if you are not ready to commit to taking out a mortgage or if you are not yet sure of your financial situation.

"A mortgage adviser assists clients in obtaining mortgages. To qualify in the United Kingdom, you must be a fully qualified specialist who is both authorised and regulated by the Financial Conduct Authority (FCA)."

How do I find a mortgage adviser?

There are a few things you need to think about when you are looking for an adviser. 

Firstly, you should ensure that they are qualified and authorised and regulated by the Financial Conduct Authority (FCA). 

Secondly, you should check that they have experience in dealing with the type of mortgage in which you are interested. It is always a good idea to speak to a few different firms to see what’s on offer and to compare fees.

It is essential that you choose a service that you can trust. Here are a few tips on how to find a someone reputable to give you advice:

Ask around

If you know anyone who has recently taken out a mortgage, try trading recommendations. Chances are they will be more than happy to share their experiences with you.

what does a mortgage adviser do

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Check reviews

When searching for an advice service, be sure to check online reviews. This will give you an idea of what other people’s experiences have been like and will help you narrow down your choices.

Get in touch

Once you’ve found a few services offering advice that you’re interested in, get in touch with them and ask any questions you have. 

This will give you a much better understanding of their services and will help you make a decision. You should make sure that you feel comfortable with the service and that they understand your individual needs.

Are there different types of mortgage advisers?

Yes. Some specialise in specific areas which require niche knowledge and expertise, such as buy-to-let investments, self-employed customers and bad credit mortgages. However, in general, there are two main types of advisers.

Advisers connected directly to mortgage lenders

These advisers usually only recommend mortgages from that specific mortgage lender. This might not be the best person to talk to for advice.

‘Whole of market’ or independent financial advisers

These mortgage advisers can look at a variety of mortgages from various lenders. Some could even look at the entire market to provide you with a broader selection of products.

Choosing a mortgage broker or adviser who offers a ‘whole of market’ service makes sense. This means they have the most lenders and mortgages to choose from.

However, even ‘whole of market‘ services do not provide comprehensive coverage. 

There are, therefore, still advantages to going directly to the lender for your mortgage rather than through an adviser or broker. Some lenders may provide special terms only available if you go to them directly, allowing you to avoid having to pay any upfront mortgage broker fees.

do I need a mortgage broker

What happens when I contact a mortgage adviser?

When you contact an adviser, they will ask about your financial situation and what you are looking to achieve with your mortgage. They will then search the entire market to find the best deals that match your requirements and fit with any other debts you might have to a creditor or a bank and your capability to absorb interest. 

These services are impartial and will only recommend products that are in your best interests.

They will then provide you with a list of options, and it is up to you to decide which one will be the best choice for you. They will also help you with the paperwork and will submit your application on your behalf.

Once your application has been approved, the adviser will work with you to ensure that everything goes smoothly and that you are satisfied with the outcome.

What are the fees associated with using a mortgage adviser?

Generally, there is a cost associated with seeking advice associated with mortgages. Unlike most mortgage brokers who are paid in commission or with a fixed fee, mortgage advisers typically charge a flat rate fee (around £500 would be expected as the industry standard). 

However, this will vary depending on the adviser and the complexity of your situation.

Some advisers may also charge an ongoing fee, which is usually a percentage of the mortgage loan amount. This is known as a trail commission. They are not likely to charge an hourly rate.

It is important to remember that providers of mortgage advice are not paid by the lender, so their fees will not add to the cost of your mortgage.

When comparing different advisers, be sure to ask about their fees so that you can make an informed decision. Having to pay these fees can definitely contribute a considerable percentage to the overall cost of taking out a mortgage.

mortgage advice

I don’t want to consult an independent mortgage advisor, what are my other options?

It is important to remember that taking out a mortgage is a big decision, and it is essential that you understand all of your options before making a decision. If you are unsure about anything, it is always best to consult with a professional or with a broker.

If you would prefer not to seek mortgage advice, you can apply for mortgages directly with a lender. However, this can sometimes not be the best option as you may not be aware of all the products that are available to you.

Another choice is to hire a mortgage broker. Like advisers, a mortgage broker service will search the market on your behalf and provide you with a selection of alternatives. A broker is usually linked to one or two lenders, so the advice of a broker may not be reliable.

What is a mortgage broker?

A mortgage broker is a type of middleman who connects borrowers with potential lenders. A broker is typically used by people who have difficulty qualifying for mortgages from a traditional lender, such as a bank.

Mortgage brokers work with a variety of different lenders and can help you find the best deal for your situation. However, mortgage brokers are not always impartial and may only offer products from the lenders they are associated with.

It is essential to compare different brokers before deciding on one, as their fees can vary significantly.

mortgage financial adviser

What is the difference between mortgage brokers and advisers?

A mortgage adviser is a professional who helps you find the best mortgage deal to suit your individual circumstances. Services providing this kind of advice are required by law to act in your best interests and can search the whole of the market to find the most suitable product for you.

A mortgage broker is someone who connects you with a potential lender. Brokers are helpful in terms of providing you with the best options and making it easier to compare products. Brokers can, however, be partial and only offer mortgages from their associated lenders.

While there are certain mortgages which are only available via brokers, there are also some which only available if you apply directly to a bank without a broker. These are known as ‘direct-only’ mortgages. Brokers have no obligation to inform you of these mortgages.

Do I need a mortgage broker?

You might need a mortgage broker if any of the following apply.

  • You’re self-employed or have bad credit, and find it difficult to get a mortgage for a property from a high street lender
  • You want to buy a property through a limited company
  • You’re looking for a specialist mortgage
  • You want to remortgage to a new lender

 

So should I consult a mortgage adviser?

Choosing the right place for mortgage advice can save you time, money and a lot of stress. 

A good adviser will have your best interests at heart and will work with you to ensure that you procure the best mortgage deal possible for your circumstances. However, the fees associated with this expert advice can contribute to the overall cost of taking out mortgages.

Remember, when looking for mortgage advice, it is crucial to choose one that is qualified and regulated by the Financial Conduct Authority (FCA).

Before you take out a mortgage, it is crucial that you think carefully before securing debts against your home. Your property might end up being repossessed if you do not keep up repayments on your mortgage.

Fundamentally, it depends on your personal circumstances. However, if you are unsure about anything, if you’re taking out mortgages as a first-time buyer, or if you simply want peace of mind, you should talk to an independent mortgage advisor who can help you with your research.

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Learn More About Mortgages In The UK

How do mortgages work in the UK?

Buying a home or land is expensive. A mortgage is a financial product that helps people purchase their own home or land.This is especially true for a first time buyer, as it might be the only route onto the property ladder.

The minimum credit score for a mortgage

ou can still be approved for a mortgage to buy a property if you have a poor credit score. However, someone with a poor credit score will probably have a higher interest rate than someone whose credit score is good. Buyers with a low credit score may also need to pay a bigger deposit.

fixed term Contract Mortgages

A fixed term contract is a way of describing certain types of employment. If your current employment contract is due to end after a certain period of time, or after a specific piece of work is complete, you are likely on a fixed term contract. 

how long does a mortgage application take?

After sending off the final application waiting for the decision can be frustrating. Many prospective homeowners ask ‘how long does it take?’ but the truth is the mortgage approval process is always different for each customer.

how long does conveyancing take?

The entire conveyancing process will normally take anywhere between 8-12 weeks, however you should be prepared for this to take much longer depending on your circumstances and wider factors. This articles explores what the timescale involves.

Mortgages if You are bankrupt

There is no hard and fast rule when it comes to what lenders will accept your mortgage application if you want to get a mortgage after bankruptcy. They will lend to discharged bankrupts and consider each case individually. 

what stops you getting a mortgage?

Everyone wants to get the best deal when it comes to buying a home and getting a mortgage when they buy a home. However, being too ambitious can lead to your application being rejected. 

how much do mortgage advisors charge?

Fees for mortgage brokers can be off-putting. A mortgage is an expensive financial product, and often buyers want to save as much money as possible. This might limit their options when it comes to using a mortgage broker.  However, not everyone advisor charges a fee.

IVA Mortgage

When you have an IVA, mortgage acceptance is still possible. However, involuntary agreement mortgage lenders can be hard to find. Typically, a high street company will be more less keen to give you a mortgage. 

Article author

Katy Davies

I am a keen reader and writer and have been helping to write and produce the legal content for the site since the launch.   I studied for a law degree at Manchester University and I use that theoretical experience, as well as my practical experience as a solicitor, to help produce legal content which I hope you find helpful.

Outside of work, I love the snow and am a keen snowboarder.  Most winters you will see me trying to get away for long weekends to the slopes in Switzerland or France.

Email – [email protected]

Frequently Asked Questions

What is a mortgage adviser?

A mortgage adviser assists clients in obtaining mortgages. To qualify in the United Kingdom, you must be a fully qualified specialist who is both authorised and regulated by the Financial Conduct Authority (FCA). 

At what stage of the process should you seek out a mortgage adviser?

As soon as you start considering taking out a mortgage, it is a good idea to speak to an adviser. They will be able to provide you with guidance and support from the very beginning of the mortgage process and help you figure out crucial things like how much you can borrow and what type of property might be appropriate for you.

What are the risks of not getting an adviser?

Without the guidance of a professional, it can be very easy to become overwhelmed by the vast amount of information that is out there. There are several risks associated with deciding not to talk to an adviser.

What is a mortgage broker?

A mortgage broker is a type of middleman who connects borrowers with potential lenders. A broker is typically used by people who have difficulty qualifying for mortgages from a traditional lender, such as a bank.

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