Bank adviser: Walk into any bank or building society tomorrow and the likelihood is that the adviser will only be able to talk to you about the limited range of mortgages that their respective bank or building society currently offer. Whilst this is great if you are lucky enough to choose one that offers a really good deal, getting it wrong can cost many £1000’s plus, so are you prepared to take pot luck? The bank mortgage adviser does not normally charge a fee as they are not really giving advice but just letting you know what mortgage products they have.
Estate Agent Adviser: Many Estate Agents have now added Mortgage Advisers to their armoury and it seems like a sensible thing to do. They sell properties I hear you say! Many are employed directly by the Estate Agent if they are a larger chain but some are provided by an outside company. Some work on a limited panel of mortgage lenders and some are truly independent, so it pays to ask. One of the things our experts do when a client contacts us regarding a purchase is research the area to ensure your offer is in keeping with similar properties sold locally. As Estate Agents get paid a percentage of the selling price, do you think their mortgage adviser will also do the same research for you? Some will charge you a fee and some will not, but can you be absolutely certain they are working for you?
Independent Financial/Mortgage Adviser: An independent adviser will almost certainly charge a fee, usually on legal completion, as they are paid for giving independent mortgage advice on the most suitable mortgage for your circumstances. There are some lenders that are only available if you go direct to them, but by paying a fee, your independent adviser should consider these lenders as you are asking a mortgage expert to look in depth at your requirements and use their knowledge and experience to recommend the best available mortgage for you. If one of these ‘direct only’ lenders are recommended, your independent adviser will be unable to handle the application and subsequent mortgage process for you as the lender will not allow this. If an alternative lender is chosen, you will be given reasons for doing so and have your options explained to you. The Financial Services Authority (now replaced by the Financial Conduct Authority) put in place legislation that will come into effect in April 2014 that almost all mortgages must be on an advised basis from then on.
Click here to contact one of our expert independent mortgage advisers from 1st Call 4 Mortgages (UK) Ltd, for free mortgage advice. 1st Call 4 Mortgages (UK) Ltd is authorised and regulated by the FCA.