Mortgage advice – Should you use a mortgage adviser?
Caz Blake-Symes • May 28, 2020
Guidance from The Money Advice Service
Adapted from an article by moneyadviceservice.org.uk
Getting a mortgage is one of the biggest financial decisions you will make, so it is important to get it right. This article will help you work out whether you should get a mortgage adviser, where to get free advice, how your bank might be able to help and which comparison websites you can check.
How to choose a mortgage
The mortgage market is incredibly competitive, and it can be hard to understand what exactly is on offer. There are many different providers and a wide range of products and rates available.
So, it is a good idea to talk to your bank, as well as a number of independent mortgage advisors, before making up your mind. This guide will take you through the routes to getting a mortgage and the importance of studying your options before making a decision.
Why it is usually a good idea to get mortgage advice
Lenders (usually banks) and brokers must offer advice when they recommend a mortgage for you.
They will assess the level of mortgage repayments you can afford, by looking at your income as well as your debt repayments and day-to-day spending.
This means you should end up with a mortgage that suits your needs. Although lenders and brokers must offer advice in almost all cases, you might be able choose to reject the advice and find your own mortgage deal based on your own research. If you choose your own mortgage without advice, it’s called an “execution-only” application.
Risks of not getting advice
Getting advice, rather than doing research on your own, means that if the mortgage turns out to be unsuitable for you later on, you’ll have more rights when you make a complaint.
For example, you could make a complaint of financial mis-selling if the advice you were given turned out to be unsuitable for you. Not taking any advice means you have to take full responsibility for your mortgage decision.
If you don’t take advice, you could end up:
- With the wrong mortgage for your situation, which would be a costly mistake in the long run.
- Being rejected by your chosen lender, because you didn’t understand the restrictions clearly or what circumstances the mortgage was designed for.
When to see a mortgage adviser
A mortgage adviser, also known as an independent mortgage broker, is a specialist with in-depth knowledge of the market.
They can look at a range of mortgage products which suit your needs. It is a good idea to speak to a few of them to see what is on offer.
There are three main types of mortgage adviser:
- Some are tied to a specific lender
- Some loo k at deals from a limited list of lenders, and
- Some check the whole market for a wide range of products
Even ‘whole of market’ advisers do not cover everything.
They cannot advise you on mortgages that are only available if you go to the lender directly. All mortgage advisers must offer you advice when recommending the most suitable mortgage for you. This means you are protected and you can complain to the Financial Ombudsman if things go wrong.
Other reasons to use an adviser
- They will check your finances to make sure you can afford a mortgage
- They might have exclusive deals with lenders, not otherwise available
- They often complete the paperwork for you, so your application should be dealt with faster
- They will help you take all the costs and features of the mortgage into account, beyond the interest rate
- They should only recommend a mortgage that is suitable for you and will tell you which ones you are likely to get
Fees
Mortgage brokers might charge you for their service depending on the product you choose or the value of the mortgage.
Others will be free to you, but they will receive commission from the lender. They should tell you up-front how much you will pay for their services. You should also be told if an adviser is paid commission. Once your broker makes a product recommendation, they must give you a mortgage illustration document(s). This document is usually called a keyfacts illustration.
What to look for in a mortgage
It is also important to do some research into the type of product and features you need before making a purchase or changing supplier.
There are other factors, which also contribute to the whole amount you pay back over time.
Look out for:
- APRC: (Annual Percentage Rate of Change) takes some mortgage fees into account as well as the interest rate and expresses it as a percentage.
- Deposit size: the higher the deposit, the lower the interest rate you are likely to get
- The standard rate: which your mortgage will switch to once your fixed rate deal ends.
- How often is interest charged? will it be paid daily, monthly, or annually? Daily interest works out cheaper.
- Flexibility: can you overpay your mortgage without being charged and can you take a break from making payments?
- Length of fixed or variable rate deal: do you want to be locked in for a long period. or have more flexibility? There will be charges if you switch out of a deal before it ends.
For further details about the service we offer as a fully independent mortgage brokers or any other mortgage information book your FREE CONSULTATION with one of our expert Mortgage Advisers please contact us
Bristol Mortgages Online www.bristolmortgagesonline.com
Tel 0117 325 1511
Bath Mortgages Online www.bathmortgagesonline.com
Tel 01225 584 888
Exeter Mortgages Online www.exetermortgagesonline.com
Tel 01392 690 888
Email info@swmortgages.com
#bristolmortgagebroker #mortgageadvice #independentbroker #lifeinsurance #batmortgages #mortgagebroker #offsetmortgage #bathmortgagebroker #mortgageprotection, #lowinterestmortgage #incomeprotection #expertmortgageadvice #freeconsultation #remortgage #criticalillnesscover #greatbuytoletdeals #fivestarservice #highlyrecommended #topmortgagebroker #movinghouse #remortgage #mortgage #mortgage advisor #firsttimebuyer #mortgagepaymentholiday #coronaviruspaymentholiday #expertmortgageadvice
Stepping onto the property ladder is one of the most exciting milestones in life. However, between understanding deposits, navigating affordability checks, and choosing from thousands of deals, the process can quickly feel overwhelming.
Whether you are looking for property in the Bristol, Bath or Exeter areas, working
Saving for a house deposit remains the single biggest hurdle facing first-time buyers in today’s property market. As a result, more parents and grandparents are searching for ways to step in and give the next generation a head start. The good news? If you’ve built up equity in your own home over the years, you may be able to support your child without having to drain your cash savings or liquidate investments. 4 Main Ways Families Can Help First-Time Buyers 1. A Cash Gift (Gifted Deposit) This is the most straightforward route. You provide funds directly to your child to put toward their deposit or purchasing costs. • What lenders require: A signed gifted deposit letter confirming that the money is an absolute gift with no expectation of repayment, along with proof of funds showing where the money originated. 2. Releasing Equity From Your Own Home If your capital is tied up in your property, a remortgage or a further advance allows you to unlock cash built up in your home equity. You can then use these released funds to fund your child's deposit without dipping into your emergency savings. 3. A Joint Borrower, Sole Proprietor (JBSP) Mortgage A JBSP mortgage allows you to add your income to the mortgage application to boost your child's overall borrowing power. • Key benefit: While you share responsibility for the monthly mortgage repayments, your child remains the sole owner on the property deeds. This avoids triggering additional Stamp Duty costs that usually apply when purchasing a second home. 4. Family-Assist or Springboard Mortgages If you prefer not to give money away permanently, a family-assist mortgage lets you place savings into a linked collateral account or secure a portion against your property equity. • How it works: Your savings act as security for your child’s loan for a set term (typically 3 to 5 years). Provided all mortgage payments are kept up to date, your money is returned to you at the end of the term. What Lenders Will Look For When submitting a mortgage application involving family help, lenders will carefully inspect the source of funds to satisfy UK anti-money laundering regulations: Gifted Deposit Letter Signed declaration stating the cash is a non-refundable gift. Proof of Funds Bank statements showing the accumulation or source of the capital. Overseas Documentation Extra verification and audit trails if funds originate from family abroad. How Bristol Mortgages Online Can Help Navigating family mortgages and equity release requires choosing the right structure for both your family's finances and your child's long-term independence. Whether you want to explore remortgaging your home to release funds or structure a Joint Borrower, Sole Proprietor arrangement, our specialist, Phil Clark, at Bristol Mortgages Online, guides you and your child through every step of the process. Ready to explore your options? How to Contact Us for Advice Phil Clark will personally deal with your enquiry Tel 0117 325 1511 Email info@swmortgages.com Complete a form via our website www.bristolmortgagesonline.com Please remember: YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE • #BristolMortgagesOnline • #BristolMortgages • #BristolMortgageBroker • #Remortgage • #RemortgageAdvice • #MortgageBroker • #helpfromparents • #equityrealease • # gettingonthepropertyladder
If there is one thing we know about the property market, it's that it never stands still. Over the last two decades, we have seen everything from global financial shifts and a pandemic that completely rewrote the rules of house hunting to fluctuating interest rates and evolving lending rules.
When your current mortgage deal is coming to an end, the ticking clock can feel a little intimidating. Do you stick with your current lender out of convenience, or do you dive into the endless sea of comparison sites to find something better?
For many homeowners, remortgaging is the single biggest opportunity to slash
This latest edition of our newsletter includes the following articles
Remortgage v Product Transfer
Why Choose an Expert Mortgage Broker
The perfect Partner for First-time Buyers
Helpful Mortgage Products from the Family Building Society
Time to Remortgage?
Plus lots more..
Click here to check it out.
Getting onto the property ladder-or even moving up it-can feel like an uphill battle in today's market. Between rising property prices and strict lending criteria, many buyers find themselves just short of the finish line.
At Bristol Mortgages Online, we pride ourselves on finding innovative solutions for our clients.
The UK property market moves fast, and sometimes the perfect opportunity doesn't wait for your current house to sell. Whether you’re a homeowner looking to secure your next dream property before selling your current one, or a developer eyeing an auction property that needs a quick turnaround, traditional mortgages ofte
Buying a home is likely the biggest financial commitment you will ever make. Whether you are a first-time buyer stepping onto the ladder, a homeowner looking to remortgage, or a seasoned investor expanding a buy-to-let portfolio, the process can often feel like a maze of jargon, paperwork, and fluctuating interest rate
Taking that first step onto the property ladder is one of the most exciting milestones of your life—but let’s be honest, it can also feel like navigating a maze blindfolded. Between deposit requirements, credit checks, and legal jargon, the process is daunting.
Recent global developments, including escalating tensions in the Middle East, have started to influence financial markets and, in turn, UK mortgage rates.
Understanding how these events filter through to borrowing costs can help you make more informed decisions.