5 Top Reasons Why You Should Talk to a Mortgage Adviser

1. It's cost-effective. A recent study found that people who used a mortgage adviser saved up to £1,830 a year over people who did not use one. The average saving found in the study was £962 . Advisers often have access to special money-saving deals that aren't available to the public.
2. It's less hassle. You don't have to waste precious time searching through thousands of mortgages, sending in applications, and talking to various lenders to find the best deal. An adviser will do it all for you.
3. Knowledge that puts you in control. An adviser will give you a full understanding of how your mortgage works so that you'll feel in control and won't waste any money.
4. Reassurance. Your adviser will keep you from feeling overwhelmed or confused about possibly the biggest financial commitment in your life.
5. One size doesn't fit all. Since different mortgages are best suited to different people, an adviser will find the right one for you and save you years of stressing over your finances.

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5 Things You Save by Talking to a Mortgage Adviser

1. Money: You could save up to £1,830  a year by having an adviser secure the best mortgage deal for you.
2. Time: An adviser will save you precious time by searching through thousands of mortgages for you, talking to lenders on your behalf, and getting your mortgage sorted faster.
3. Control: Advisers know your financial situation and will find the best deal to suit your needs, which allows you to have complete control over possibly the biggest financial commitment in your life.
4. Confusion: If you feel overwhelmed and puzzled about paying off your mortgage, an adviser will help you understand your mortgage so that you feel confident while dealing with such a huge financial commitment.
5. Stress: An adviser will not only help arrange you a mortgage – they will make sure you get the best mortgage available. This can save years of stress over your finances, and you can always talk to your adviser again if you need more advice regarding your mortgage in the future.

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What will an adviser do for me?

Here are the practical steps a mortgage adviser will take to help you:

• Search through over 3,000 available mortgage deals to find the one best suited to you
• Compare deals and help you decide which mortgage to choose
• Sort through the paperwork involved in taking out your mortgage
• Follow the process of your loan to make sure everything goes smoothly
• Chase your mortgage application to make sure the lender, solicitor, and estate agents are doing what they should be
• Contact you when your mortgage comes up for renewal
• Help sort out a remortgage
• Advise you on matters of tax, insurance, and investment

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What kind of advisers are there?

There are 3 types of mortgage advisers:

1. Tied or multi-tied agents: These advisers offer information instead of advice. They are employed by specific banks, building societies, and/or home loan providers. If you speak to a tied agent, they can only recommend products offered by the company they work for. These are the people to speak to if you know you want a product from their company. It's free to talk to them and they can give you all the information on the products they offer.
2. Mortgage Brokers: A broker can advise you on a wide range of mortgage deals. Some brokers search the whole market for loans while others search from a select group of lenders. These are the people to speak to if you need advice on which of the thousands of mortgage deals available is the best deal for you. They can also offer you other related financial products such as life insurance, building and contents insurance, mortgage payment protection insurance (MPPI) and critical illness cover (some of these may be tied to a mortgage, but they are usually extras). Some brokers charge you a fee, some receive commission from the lender, and some are paid by both fee and commission. Brokers can range from a large agency with offices around the country to a one-man company.
3. Independent Financial Advisers (IFAs): These advisers offer you advice on a wide range of several financial products, not just mortgages. They search the whole market to find the best deals for you. These are the people to speak to if you want advice on several financial products, including life insurance, tax advice, investments, other loans, etc. Independent Financial Advisers offer a choice of payment, from fees to commission or a mix of both (in which the commission is deducted from the fee).

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What happens after I contact an adviser?

First, the adviser will send you an Initial Disclosure Document (IDD) giving you the basic facts about their mortgage service. This document:

• Lists the type of service the adviser offers
• Introduces you to the adviser and the company
• Explains if the adviser will give you advice and a recommendation or just information
• Informs you of any fees they charge and states whether any fees are refundable
• Tells you whether they receive any commission from the lender
• Specifies the amount of lenders they use to search for deals (either whole market or a group)

If you still want more information after reading the IDD, visit the company's website

An adviser will complete a 'fact find', which is a series of questions you'll be asked in order to determine your financial situation, your employment circumstances, and what you want from a mortgage. After your application is complete, the adviser will submit you for loans that are the most suitable for your situation. This is especially useful for first-time buyers who have never gone through the process and may feel overwhelmed by the mortgage application.

Once a mortgage is recommended, the company will send you a Key Facts Illustration (KFI) which tells you the key details of the loan. A KFI can list several mortgages so that you can compare different deals to determine what offers you the best value over the long term. This document:

• Lists the overall cost of the loan.
• Explains the rate, term, and any early repayment charges for the loan
• Calculates your regular repayments
• Lists the annual percentage rate (APR) and initial interest rate
• Mentions if there are any limits (or penalties) for overpaying
• Informs you of any survey costs
• Includes any information on selling the property
• Reminds you of any fees you will need to pay the lender and/or adviser.

This document makes it easy to compare your mortgage choices.

If your mortgage is fairly simple you may be able to complete everything with your adviser on the phone or online, but usually you will conduct business face-to-face. Advisers are flexible and can visit you at home, at work, or anywhere convenient at any time that suits you.

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Why do I need an adviser?

No matter how much research you do to find a good mortgage, you don't have the financial expertise and easy access to great deals that an adviser has.

Even a standard loan has a certain level of complexity that can't easily be thoroughly understood, even with all the helpful information on the Internet. An adviser can save you thousands of pounds throughout the course of your loan while making the mortgage process relatively pain free.

At any one time there can be up to 5,000 (or more) mortgage products available, which can change on a daily basis. Advisers have a complex computer system that mines through thousands of individual mortgage deals with different terms & conditions to find the best offer for you. With so many products available, it is common for an adviser to find a mortgage you've never even heard of that best suits your situation and saves you the most money.

Advisers also have access to deals that are only available through them (this is known as the 'intermediary channel'). Usually these deals have a competitive edge over the standard deals available to the public.

It's difficult to make the right decision if you don't have all the facts. A professional adviser can provide you with all the information you need to make an informed decision on the biggest financial transaction of your life. It's the best combination of interest rates and fees that will determine the most suitable mortgage for you.

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What other advantages are there using an adviser instead of going straight to a lender?

Apart from the potential cash and time savings, other advantages of going to an adviser instead of a lender include:

• An adviser gives you personal service and supports you every step of the way
• An adviser can get you a mortgage within a couple of days if you need it quickly
• Brokers have a more flexible approach when looking at your mortgage application. Many lenders only look at strict income levels which can keep you from getting a better deal and may even keep you from getting a mortgage altogether
• Despite the daunting credit crunch, advisers can help you get a mortgage even if you have bad credit
• Some lenders only deal with intermediaries, so you can't deal with them directly
• Mortgage brokers have access to unique deals that lenders don't offer on the open market

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Can an adviser help me get a mortgage if I have unusual circumstances on my mortgage application (such as bad credit or self employment)?

Yes. Advisers are especially needed if you require a more specific or unusual type of mortgage. Lenders who offer these mortgages tend to only work through intermediaries, so you will need an adviser to handle your case.

Due to the complications of the credit crunch, there are more applications for mortgages these days but fewer deals are available. With this competitive element added onto the stress of securing a mortgage, an adviser is an invaluable asset. An adviser can go over your finances with you and find a way to get you an affordable loan, such as a self-cert mortgage or a subprime mortgage.

If you are self-employed or need to borrow large sums of money, you may struggle to get a competitive rate. An adviser can find a better rate for you by searching through more mortgages and accessing special deals not available on the open market.

If you need a mortgage in a hurry, an adviser can secure you with a loan within a matter of days. However, be aware that for this expedited service you may be charged additional fees and you may not get the most competitive rate.

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What questions should I ask an adviser?

When you initially speak with your mortgage adviser, ask them the following questions:

• Are you an independent mortgage adviser or are you tied to a specific company?
• Do you search for mortgages from the whole market or only from a group of lenders? If they only advise for certain lenders you will have more limited offers (but some advisers claim they only work with a smaller group of lenders because they know those lenders consistently have the best deals).
• What are your qualifications? Check if they have their Certificate of Mortgage Advice and Practice (CeMAP) and Mortgage Advice Qualification (MAQ).
• Do you charge a flat-fee rate, receive commission from a lender, or receive a mixture of both? If they only charge a flat-fee rate you are guaranteed unbiased advice since there is no additional advantage for the adviser to suggest a specific lender who offers more commission.
• Do I have to pay any fees to the lender?
• Are any of the fees from you or the lender refundable?
• What other products do you sell? They may offer life insurance, building and contents insurance, mortgage payment protection insurance (MPPI), and critical illness cover (some of these may be tied to a mortgage, but they are usually extras).
• Do you offer your other financial products from the whole market or from limited providers?

As you initially speak with an adviser, make sure you are comfortable with them and that they are interested in you.

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What information does an adviser need to know about me?

You will need to provide your adviser with the same information you'd give a lender. Along with photo ID, you need to show proof of the following:

• Name (could be from your passport)
• Current address (could be from a utility bill)
• Details of any mortgage lenders or landlords you've had business with over the past 3 years
• Details of your employer
• Income (from wage slips and a P60)
• Details of any loans and credit card debts
• Bank statements for the past 6 months
• Details of the property you want to buy

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How do I know I'm getting good advice?

The Financial Services Authority (FSA) regulates all provisions on a mortgage, including advice. Advisers must pass a number of exams before they are allowed to advise the public. Qualified advisers are obliged to perform their duties to a high standard, treat you fairly, and give you the best advice they can offer. Additionally, advisers are required to send you several documents to help you reach an informed decision. If you would like to read more about the FSA, please visit www.moneymadeclear.fsa.gov.uk/.

If an adviser does not follow the rules of the FSA they will can be charged fees, have their business suspended, or even face a prison sentence.

On the off-chance that you do receive bad advice, you can complain to the Financial Ombudsman Service and claim compensation at www.financial-ombudsman.org.uk.

Advisers should have a Certificate of Mortgage Advice and Practice (CeMAP) and a Mortgage Advice Qualification (MAQ). You can also check to make sure your adviser is authorised to give mortgage advice by visiting www.fsa.gov.uk

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How do I find a mortgage adviser?

There are around 12,000 mortgage adviser firms in the UK, of each of the three types of mortgage advisers listed above. These vary from substantial firms to individual IFAs working from home.

If you would like a shortlist of 3 local IFAs in your area, you can contact Independent Financial Adviser Promotions (IFAP) or visit www.unbiased.co.uk. Be aware that many IFAs will charge a fee for advice (see below).

This site provides an easy way to speak to a local, suitable mortgage adviser. Our enquiry form matches details of your mortgage requirements to a large database of advisers and puts you both in touch with one another. If you would like to speak to a mortgage adviser now, please fill in this mortgage advice enquiry form and a professional mortgage adviser will call you promptly to discuss your finances, review different mortgage options, and help you secure a mortgage and purchase your home.

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Will I pay a fee for mortgage advice?

You will be charged different amounts depending on which adviser you use.

Mortgage brokers vary on how they receive payment. All brokers get a procuration fee (commission) from lenders for taking out a mortgage on your behalf. Usually brokers receive approximately £428 or a percentage of the loan size (usually 0.35% - 0.4%) for each mortgage they arrange. Some brokers charge a flat fee for their services (usually around £200 - £300 or a percentage of the loan size, from 0.3% - 1.5%) and sometimes brokers refund this fee if you follow through with the mortgage or if the lender offers a higher commission. The charge varies depending on how much advice you need and how complicated your mortgage is.

Other brokers offer a lifetime fee, which is a single fee paid throughout the duration of your relationship with the broker, no matter how much advice you require. This is particularly useful if you plan to remortgage.

If you are paying a fee to a broker, ask how much commission they receive from the lender. This way you can determine whether they are giving you a fair fee on top of their commission and you can make sure the broker isn't just recommending a specific lender because that lender offers the highest commission rate.

Remember, even though you may have to pay a few hundred pounds on a mortgage adviser, they can save you thousands throughout the lifetime of your mortgage. Advisers are the quickest route to the best deals and will help you make the right decision.

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Talk to a professional mortgage adviser in the UK

If you'd like to start your journey towards buying your home, fill in this short form and a mortgage adviser will contact you soon to answer all of your questions and give you qualified mortgage advice.

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