Collaborative Post
Thinking of buying a house? It’s a super exciting time! There’s a lot to look forward to, but also a lot to think about. It’s not just about getting on RightMove and going to view all the nicest houses in your area (although that is without a doubt the best part!). You must also get your finances in order and, of course, apply for a mortgage.
Commonly, people opt to hire a mortgage advisor and broker to help them through this process. You can go solo and do it alone, but there’s a reason why there are experts employed to do it for you! It’s not the easiest of processes, unless you really know your stuff – not to mention it’s time-consuming. If you’re not sure whether you want to use a mortgage advisor or broker, then please read on…
What do mortgage advisors and brokers do?
In the same way that a conveyancing solicitor would take on the responsibility of all the legal aspects of buying a house, a mortgage advisor and broker takes on all of the mortgage aspects. They are with you right from the very beginning; from advising you of a suitable budget for you to stick to when house-hunting, to getting you a mortgage in principle, to applying for the right mortgage deal and seeing it through to completion. This leaves you free to focus on the more exciting things, such as hunting for the perfect sofa for your new living room and packing your current home into boxes.
As a consumer, it’s difficult for you to know the in’s and out’s of the mortgage market – and who would expect you to? It’s a fairly complex field with a lot of jargon to get your head around. A mortgage advisor and broker is a specialist within this area. Not only will they advise and arm you with the right knowledge about the kind of mortgage that will work best for you, but they will also speak to lenders and find you the most cost-effective mortgage deal, potentially saving you quite a few pennies.
Additionally, having an expert on your side means that you won’t be applying for the wrong sort of mortgage deals. This could leave you at risk of being rejected, which may show up on your credit report. This could be a red flag for future lenders that you approach, so is best left avoided.
Photo by Rowan Heuvel on Unsplash
What does a mortgage advisor and broker need from me?
A mortgage advisor and broker needs to get a good picture of your financial situation, so that they can arrange the right mortgage accordingly. To begin the process, they may ask you to provide:
- Photo ID (current passport or full UK photocard driving license)
- Proof of your address (utility bill or bank statement)
- Proof of your income
- Details of any outstanding loans, unpaid credit card bills, car finance, overdrafts, etc
- Details of any current life, critical illness, or home insurance policies
- Details of any other mortgages you might have (buy-to-let for example)
I recommend getting as much of this information together as soon as possible when beginning the house-hunting process. This will allow your mortgage advisor and broker to get your mortgage in principle (an unofficial agreement from a lender that they will lend you a certain amount of money) in place so that you are in a good position to put an offer in on the house that you love.
Where can I find a mortgage advisor and broker?
Finding the right mortgage advisor and broker is well worth your research. Your mortgage will be with you for years and years to come, so it’s really important to get right. A good place to start is asking any family and friends for recommendations, and go from there.
There are also a few different types of mortgage advisor and broker. You need to look out for:
- Tied brokers – usually recommended by a particular mortgage lender, as they offer deals only from that provider
- Multi-tied brokers – offer a range of mortgages from a panel of mortgage lenders
- Independent brokers – also known as ‘whole-of-market’ brokers, scan the entire mortgage market to find the best product for you
Some brokers and advisors will charge you a fee, and some may get a commission from the lender they set you up with instead. Independent brokers will usually come at a cost, but they will have a larger pool of mortgage deals available to them.
So, should I use a mortgage advisor and broker?
I think it’s fair to say that the majority of people that have used a mortgage advisor and broker in the past would recommend that it’s the best way to go. For a reasonable fee, it’s a potential headache taken right off your hands and handled by someone who knows exactly what they are doing, and are invested in making sure that you are happy with your mortgage.
Like I said, it’s just not worth getting wrong! Even more so if you are a first-time buyer. Plus, if you know absolutely nothing about mortgages, using an advisor and broker is the perfect way to get to grips with it all a little bit more. It’s important that you not only come away with a great mortgage product, but that you understand why it’s great and why it works for you.
I can’t remember if we used a mortgage advisor when we bought out house but this seems like great advice.
My partner and I used a mortgage adviser when we bought our house and never regretted it for a moment. He found us a great deal and helped with all the paperwork. We even invited him to our housewarming party!