Why You Should Seek Advice From a Mortgage Adviser

Getting a mortgage can feel like a long, complicated process at times. From working out your budget to finding the right deal, to calculating all the various costs, it can feel like a lot. As a mortgage is one of the most significant financial decisions that you’ll make in your life, it’s crucial that you do all you can to make sure that you’re find the right product for you.

With how much there is to cover when choosing a mortgage, many people enlist the help of a professional to find the right deal. Either an online service or a physical person that you got to see, a mortgage adviser is there to give you advice during the whole process as well as helping you find the right deal.

Mortgage Advisers in a Nutshell

Mortgage advisers (or brokers) are there to act as a middle man between you and the lender.

There are thousands of loan products on the market split between many lenders, so trying to go through them all and find the right one might seem like an arduous task. If you talk to a bank or building society, even if you’ve been with them for many years, they will only have a small number of loan products and definitely won’t tell you about any better deals out there.

If you use their service, it’s then their job to find you the deal best suited to you and your situation. Most will also offer to help work out other costs as well such as Stamp Duty, Life Insurance or Building’s Insurance.

How They Work

There are two different types of adviser: Online and physical. While both have the same goal, they operate in different ways with the outcome depending on your own input and financial situation.

They are legally required to offer advice when they recommend any kind of loan to you. With a physical adviser, the first thing they will do is assess your financial situation. They will do this by looking at the documentation you provide them. This will usually include:

  • Bank statements (At least three months’ worth)
  • Your most recent P60
  • Payslips (at least three)
  • Business accounts (Only if you’re self-employed)
  • Proof of address (a recent utility bill)
  • Proof of identity (A driving licence or passport)

After the paperwork has been reviewed, they will usually ask more questions about your financial situation to gain a better understanding of your needs. Should you have special circumstances, they will also need proof. It’s always a good idea to be as organised as possible before your first meeting. If you want to make sure things run smoothly, all available paperwork should be on hand as well as any questions you might have already written down. Plus, having all your documents to hand will already give you an idea about your current financial situation even before you meet with an adviser.

The Benefits of Getting Advice

While talking to a professional before you apply for a mortgage isn’t a legal requirement, it does have many benefits. One of the main ones is that they are experts in their field. Plenty of people find the process confusing, so an adviser will be there to guide you through and explain everything in plain English.

Since a mortgage adviser has a good idea of your finances, they’ll be able to work out the level of repayments you’ll be able to afford month to month as well as what the best type of loan will be. This means you’re all but guaranteed to end up with a mortgage deal that’s perfect for you.

They will also have the resources to look into all the deals on the market, with some even having exclusive deals with certain lenders. Many will also offer to chase any conveyancing paperwork for you which can mitigate some of the stress involved in the whole process.

If you still aren’t sure, remember that you aren’t limited to talking to just one. Feel free to consult mortgage advisers, your bank and do your own research if you really want to get all the information that you can.

The Risks of Not Seeking Advice

If you choose to apply without getting any advice, it’s called an “execution-only” application. While this is an option, keep in mind that it comes with its own set of risks.

Even those who are financially savvy can feel overwhelmed by the process of getting a advisor. If you do it alone, you must bear full responsibility for your choice. You could end up for the wrong type of deal for your situation which would be a costly mistake. You could also be rejected from your chosen lender. While no lender will say no just because you didn’t take advice, they will if you either didn’t understand the restrictions of the deal or what type of circumstances the deal was originally designed for.

Getting advice will also give you more rights should you want to complain. If you get advice and the mortgage you end up with turns out to be unsuitable, you’ll have more of a legal leg to stand on.

It’s important to think long-term when applying for a mortgage. Not only is it a huge financial decision, but it’s also one you could be paying off for decades. While it’s completely your decision whether or not you seek advice, keep in mind that it’s a few hours of your time that’s helping set you up for borrowing a lot.