How to Get Quality Mortgage Advice
Using an Independent Mortgage Advisor to Reduce Monthly Repayments
Dec 19, 2008
There are literally hundreds of mortgage deals available. Trying to choose the one that will reduce monthly repayments by the most is a tough task for anyone. An independent mortgage advisor can search the entire market and select the mortgage deal that is right for the borrower.
Type of Mortgage Advisor
- Tied agent. This advisor can only sell the products of the financial organisation they represent. Whilst it presents a borrower with a choice and a chance to save money, it is a very limited choice so savings on monthly repayments may not be optimised.
- Multi-tied agent. These advisors are tied to several companies, thus offering borrowers a slightly wider variety of mortgage deals. However, this doesn't nearly cover the entire market.
- Independent mortgage advisor. An independent advisor can trawl the entire market for the most favourable deal.
Why an Independent Mortgage Advisor is the Right Option to Reduce Monthly Repayments
- Ability to search the entire mortgage market. This enables a borrower to choose from a vastly wider selection of deals.
- Lower monthly repayments. Freedom to be able to select a mortgage deal from the entire market means that an opportunity exists to save money and minimise monthly repayments.
- Professional advice. Receiving advice from a skilled professional is important as the industry is notoriously complex. This is particularly important for first time buyers who haven't yet developed any experience.
- Useful connections. Independent mortgage advisors form useful industry connections which are of great assistance when complex situations arise. This can prove useful when bad credit exists or if the borrower is self employed.
- Access to special deals. Some brokers have access to mortgage deals that aren't available to the general public.
Using the services of an advisor will incur a fee of approximately 1% of the amount borrowed. This can normally be added to the amount borrowed, although some charge an up-front fee for their services.
What Happens if an Independent Mortgage Advisor Gives Bad Advice?
All independent mortgage advisors are regulated by the Financial Services Authority (FSA). If advice given is bad or inaccurate it is possible to take the matter to a Financial Ombudsman. This affords the borrower excellent protection.
It is hard to put a price on receiving the best mortgage advice, especially for first time buyers or those with bad credit. Quality advice does come at a price so it is imperative that anyone considering using an independent mortgage advisor factors this into any savings that are realised.
Those that found this article useful may also be interested in reading about Fixed Rate Mortgages - Pros and Cons and Mortgage Insurance - Useful Tips Before Buying.
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