What is a Mortgage Advisor?
What is a Mortgage Advisor? In short, a Mortgage advisor is a qualified licensed intermediary who specialises in finding the most suitable mortgage for your personal financial situation.
Anyone planning to buy a property or re-mortgage an old one can benefit from working with an independent mortgage advisor. These professionals have extensive, up-to-date knowledge of the mortgage market.
This knowledge enables them to search the market on their client’s behalf and recommend the most suitable deals. They assess different offers from different lenders and find their clients deals that they couldn’t possibly find on their own.
They also increase the chances of their clients’ mortgage applications being accepted because they know which lenders best suit their specific circumstances. There are two types of mortgage advisers –
- Mortgage advisors are linked directly to specific lenders. These advisors typically recommend mortgages only from the specific lenders they have associations with.
- Independent mortgage advisors who assess a range of mortgages from various lenders. They typically check the whole market to offer their clients a wider variety of products & offers.
What is a Mortgage Advisor?
Partnering with the latter makes more sense as clients get “whole of market” services. These advisors help their clients choose the most suitable deals from the most significant number of mortgages & lenders available.
Now the main question – would you ever need an independent mortgage advisor?
Getting a mortgage is the most significant financial decision of your life. Getting it right is vital. A mortgage adviser can review the market on your behalf and propose the most suitable deal for your circumstances. Here’s how they do it.
Why do I need a Mortgage Advisor?
According to a recent study from Moveable, 14% of people in the UK are planning to buy a house. However, these aspiring homeowners must prepare to pay higher prices. The latest data from the HM Land Registry (HMLR) reveals that average house prices have increased by 9.8% this year alone. In addition, most of these buyers planning to get onto the property ladder could see their mortgage applications rejected due to bad credit histories.
According to a study by The Mortgage Lender, approximately 34% of potential homeowners are set to see their mortgage applications rejected. What should someone do if their mortgage application is denied? Team up with an independent mortgage advisor. These professionals can be the difference between a successful & an unsuccessful application.
Here’s why.
The knowledge enables a Mortgage Advisor to search the market and recommend the most suitable deal.
What is Mortgage
What does a Mortgage Advisor
- Match Mortgages as per Your Needs: Navigating the mortgage market is daunting for non-specialists. There are countless deals on offer. All of them frequently change, mainly when interest rates fluctuate. Your mortgage advisor will explain the different mortgage types (e.g., tracker or fix). They’ll also advise you on the financial flexibility of the deal and the term length depending on your life’s circumstances. They’ll find the right mortgage for you based on your income, the size of your deposit, & other personal circumstances.
- Paperwork Assistance: These professionals are well-versed in all the paperwork associated with mortgage applications. They’ll explain how you should present critical information in your application (e.g., childcare costs, annual bonuses, etc.). Their assistance starts with the initial mortgage search. They’ll assist you while you get your “mortgage in principle” agreed. They’ll even help you upload all the relevant documents in digital format on the lender’s website.
- Create Stronger Applications: Lenders will perform credit checks on all mortgage applicants. They check to see how the applicants have previously managed their debts. The higher an applicant’s credit score, the likelier his/her mortgage application gets accepted. Now, even small details like missed payments on utility bills can damage your credit score. This is especially true in this current over-saturated mortgage market. Independent mortgage advisors know these details, so they advise their clients on what they should improve their approval chances. Your mortgage advisor will assess your finances and guide you on how to adjust your finances. These adjustments can prove vital when it comes to getting your application approved. These professionals are also well-familiar with how different lenders perform credit checks & affordability assessments. Your advisor will use this knowledge to give your application a higher chance of acceptance.
The Key Functions of a Mortgage Advisor
- Leverage Existing Relationships with Lenders: An independent mortgage advisor will have long-term relationships with different lenders. Through these relationships, they amass up-to-date knowledge of the mortgage market. For example, an independent mortgage advisor regularly has conversations about policy changes, criteria updates, etc., with various lenders. This type of knowledge helps their clients immensely. They get an indirect advantage when it comes to getting their applications green-lighted.
- Help People with Patchy Income Records: People who don’t have large deposits or long employment records are likelier to see their mortgage applications get rejected. The same applies to self-employed people who get their income from various sources. For such people, the experience that independent mortgage advisors provide is precious. Mortgage advisors constantly deal with these challenging applications.
- Secure Timely Re-Mortgage Deals: The role of a mortgage advisor continues when your application is accepted, and your mortgage is up-and-running. Your mortgage advisor will remind you to switch to newer, better deals whenever your current one ends. By doing so, they’ll help you avoid your lender’s overpriced standard variable rate. Your advisor can even provide guidance on borrowing more against your existing mortgage. For example, when you are planning to build an extension on your home, your mortgage advisor will guide you on how to apply for the funds.
Risks of Not Teaming Up with a Mortgage Advisor
Doing your own research on the mortgage market is good. However, relying on this research alone when filing an official mortgage application isn’t. When you get professional mortgage advice, you learn about deals that are appropriate for your circumstances & needs.
If the mortgage recommended by your advisor is unsuitable for you, you’re still safe. Just file a complaint with the Financial Ombudsman Service regarding the “bad advice” you received. But, of course, you can only do that if you do your research.
Technically, you don’t just have more knowledge but also more rights when you team up with a professional mortgage advisor. So instead of selecting the wrong mortgage and taking a costly, long-term risk – partner with an advisor & eliminate all risks.
Conclusion
If you’re planning to get professional mortgage advice, do so at the start of your mortgage journey. An experienced mortgage advisor’s guidance will save you a lot of time, money, & effort – whether you’re re-mortgaging your house or it’s your first mortgage.
Also, speak to multiple professionals, compare their fee structures, and see what they promise to offer before finalizing your decision.
