The value of fee-free, additional guidance can be precious if you get a new mortgage. Learn what to expect before you start.
When anyone wants to buy their first home, move to a new place or stay in the same place and change mortgages because their current deal has run out can find a wide range from hundreds of lenders.
Even if you’ve done this before, a lot could have shifted since the last time. Not only the mortgage deals, but your situation, like how much money you make, how much money you spend, and how long you work.
So, how do you start?
So, where should you start?
It would help if you peeked for an independent mortgage broker who will do all the work for you. As an example:
- Find out about your situation, like your income, expenses, and deposit – and figure out how much you can afford.
- Sift through all the mortgages out there to find the best rates and fees and find one that fits your needs.
- Help you figure out which deals you’re most likely to get; then, you can apply more confidently.
- Help you in filling out the paperwork and making sure it goes right.
- To help you through the application process, we will be there to answer any questions you might have about it.
- Select the lender on your behalf and deal with any problems that could cause unnecessary delays. I will do this on your behalf.
- Advise you on any other financial products that might be good to have with your mortgage, like life or home insurance.
- It’s also essential that you choose a broker who is not tied to any company. This way, this process will work at its best. But what does this mean?
Here is a list of types of mortgage brokers:
When you are looking for help with your mortgage, you may come across three main types of brokers:
- Tied mortgage brokers: brokers who work for a single lender.
- that are linked to or part of a group or “panel” of lenders
- An independent mortgage broker, or “mortgage adviser,” is someone who finds mortgages from all the different lenders in the market. Some “direct-only” contracts are only open if you apply to the lender directly, so you’ll need to find a broker to help you.
- Tied or multi-tied mortgage brokers may not get you the best deal because they don’t have access to all mortgages. This could mean that you might not reach an agreement that is either cheaper or better for your situation.
To get the best mortgage broker, it’s still best to go with an independent or “whole of market” mortgage broker, like London and Country or Fluent. Also, save in mind that even if you work for an independent broker, you won’t be able to get deals that are “direct-only.”
How will I find out what kind of mortgage broker it is, and how can I find out?
FCA rules say your broker must be clear and upfront about what kind of advice it offers you at the start of the process, so you know what you’re getting.
Also, your broker should tell you how and how much it is getting paid – and how often. Among other things, some will earn money from lenders, while others will charge you for their help. They can only call themselves “independent” if they give you a choice.
What should I ask a mortgage broker when I meet with them?
It’s also essential to determine whether a mortgage broker is open to all lenders or only works with a few. You should also review to see if the FCA regulates it.
People who get financial advice should be given a certain level of guidance. If something goes wrong, they can go to the Financial Ombudsman and get help.
Remember that you might be charged for the advice you get and what happens if you block the procedure before it’s done. Make sure you know for sure. It’s also possible that your life has turned around, you’ve changed your mind, or you’ve even found a better deal on your own.
Remember, too, that you have the right to know how much money your broker is getting from the lender for presenting your business to them. This will be written in the ESIS, but they should also talk to you about it in person.
Where can I get help with my mortgage?
If you want to get fully independent mortgage advice from the best mortgage broker, analyze the broker using the above information.