Where to look for mortgage advice - SH April 2008
It can seem daunting, a mortgage
is a large financial transaction and you want to ensure that the
mortgage is affordable and is set up correctly. The jargon is
confusing and there is lots of
financial information and paperwork to consider.
So what are the options when looking for
mortgage advice?
Your own bank
Many people will start with their own bank or building society. Whilst you are going direct to the lender, these companies can only advise you on their own range of mortgage products. How do you know if something better exists? How do you know if you are getting the best deal?
On the high street
You could wander down your local high street and pop in to all of the banks and lenders to see what's on offer. This will certainly give you a much better perspective and allow you to compare mortgage deals. Again, these companies will only show you mortgage options from just their company.
A mortgage broker
A mortgage broker is an
intermediary. They will act on your behalf as the go between and
sit in the middle of yourself and the mortgage company. Most
mortgage brokers will have access to all of the mortgages
available so you now start to extend your mortgage options quite
considerably from just a few mortgage schemes to several
thousand.
In the main mortgage brokers come in two flavours;
- whole of market mortgage broker and
- independent mortgage broker.
A whole of market mortgage broker will have access to the whole
of the mortgage market and will expect to get paid by the lender
who arranges your mortgage. They may or may not charge you a fee
for their services.
An independent mortgage
broker also provides
mortgage advice from the mortgage
market as a whole, the number of schemes they have access to is
the same. The main difference is that an independent mortgage
broker has to offer you the opportunity to pay a fee only for
their mortgage advice services and any commission due
from the mortgage company will be paid to you. This seems like
an attractive proposition but ask carefully about the level of
fees that the independent mortgage broker will charge.
Both types of mortgage adviser will be able to offer you a
selection of mortgage choices depending on your own financial
situation and preferences. Crucially, the mortgage broker does
all of the running around for you when searching for the best
mortgage deal. So you get good mortgage advice and save time.
Once you have applied for your new mortgage the broker should
chase things up with the lender so the process goes as smoothly
as possible. Some will be able to recommend a solicitor or other
services you may need.
It is important to realise that although a mortgage broker
receives commission from the lender for providing you with
mortgage advice, you do
not pay extra for this, nor will you receive a 'discount' should
you go direct to a mortgage company.
A mortgage broker wants to please you and wants you to get the
best deal, most rely on happy customers coming back in a few
years or recommending family and friends.
Click here for
independent mortgage advice