Mortgage Advice: Do You Need a Mortgage Adviser?

Finding a new mortgage or obtaining the best deal when remortgaging can be stressful. Currently mortgage rates are higher than they have been over the previous decade and knowing which mortgage is most competitive can be like finding a needle in a haystack.

Most banks and building societies offer in-house mortgage advice, where you can book an appointment and sit down with someone to discuss your mortgage. Unfortunately, these advisers are only able to offer products from their employer and you may get an unfavourable mortgage deal – even if it is the best deal they can offer.

Using a mortgage broker is a fantastic way of comparing mortgage products across the entire market. Let’s discover what a mortgage broker does and how they can save you a lot of money.

What is a Mortgage Adviser/Broker?

There are three types of mortgage adviser:

• Sole-tied mortgage advisers
• Limited or multi-tied mortgage brokers
• Whole of Market mortgage brokers

Sole-tied mortgage brokers only offer advice on products from one lender, this would be the case if you walked into a bank and spoke to their in-house mortgage broker.

Limited or multi-tied mortgage brokers have a broader range of products they can offer from a wider range of lenders. For example, they may be able to offer mortgage products from ten lenders and give you a higher chance of finding a competitive product.

Whole of Market mortgage brokers have mortgage products that represent every aspect of the mortgage market. For example, a Whole of Market mortgage broker will be able to offer niche mortgages from specialist lenders as well as standard residential mortgages from the high street.

Because of their complete breadth across the entire mortgage market, Whole of Market brokers tend to be able to source the best mortgage deal as they have more products to compare.

A mortgage adviser will provide specific mortgage advice, considering your financial situation and making a recommendation tailor-made for you. Mortgage advisers must have completed a certification called CeMAP, or equivalent, and be regulated by the Financial Conduct Authority.

What to Consider When Choosing a Mortgage Broker

There are various aspects to consider when picking your mortgage broker.

• How many lenders do they have access to?
• Do they have the requisite knowledge to help you?
• Do they charge fees?
• Have they got access to insurance policies you may need?

Lender Panels

Finding the best mortgage deal is a numbers game. The more lenders a broker has on their panel, the greater degree they have to compare lenders and source the cheapest deal.

Experience with Mortgages

No two mortgages are the same. You may find you need specialist mortgage advice, especially if the property you are buying is unusual or you have additional income you want counted toward your affordability. A reputable mortgage adviser will have arranged mortgages across a diverse range of clients and products.

Broker Fees

Some mortgage brokers charge fees for their services on top of the commission they already receive from lenders. These fees can range from £100 to over £2000, depending on the adviser and their fee structure. Some advisers also double stack fees, charging an initial fee for advice and a secondary fee for on application.

Fortunately for consumers, the industry is evolving quickly with regards to mortgage broker fees. Many brokers are now investing in technology to streamline their service and offer remote advice. As a result, they are able to offer an excellent service, often supported by verified online reviews, with no client fee attached. Therefore, it is now becoming more of a no-brainer for mortgage clients to opt for a fee-free whole of market broker with excellent verified reviews.

In the mortgage broker world, the saying “you get what you pay for” is untrue.

Boon Brokers is a fee free mortgage broker and provides the full mortgage advisory service without charging you at any stage of the process.

Insurance

If you are purchasing the freehold tenure of a property, mortgage lenders insist you take home insurance (buildings cover) when you complete a mortgage application. You may also wish to buy life insurance, critical illness cover and income protection to insure against unforeseen circumstances with your mortgage debt.

Reputable mortgage and protection brokers have access to a large panel of insurers to source the best insurance deals alongside your mortgage.

When Should You Seek Mortgage Advice?

It is best to seek mortgage advice when you start searching for a property to purchase or, for remortgages, three months in advance of your early repayment charge end date.

If you are looking for a new home, discussing what is possible with a mortgage adviser will help you narrow down your search to properties you can afford. A mortgage broker will also be able to arrange an Agreement in Principle which is a certificate to show you can afford a property.

Some estate agents request Agreement in Principles before you can make an offer on the property.
When remortgaging, discussing your financial situation in plenty of time with an adviser will help them spend longer comparing the market and sourcing the best terms. If you approach a broker last minute, they are restricted on time and may not be able to approach a lender they would have previously due to application time constraints.

Cost of Using a Mortgage Adviser

As discussed, mortgage advisers range in the services they provide and the fees they charge.
There is no link between the service a mortgage broker provides and how much they charge. It is a common misconception you are paying for a better service.

In fact, some of the absolute best and award-winning mortgage brokers charge no broker fee for their advice. These brokers tend to service more clients and build up greater experience arranging unusual mortgages than brokers who limit their clientele by charging fees.

However, fee-free brokers tend to offer a remote service to reduce their costs. If you value face-to-face meetings, you should expect to pay a broker fee for this service.

How to Find a Mortgage Broker

When finding your mortgage broker, you should use this guide to help you. Ideally you want to use a Whole of Market mortgage broker who showcases their expertise on their website through customer testimonials and informative blogposts.

If the broker has reviews from Trust Pilot or Feefo, these are likely to be more reliable than manual reviews written on their website.

It is entirely up to you whether you pick a broker who charges a broker fee. However, you should know it is not necessary to pay for mortgage advice and the advice you receive will not be better by paying for it. If you do choose a fee-charging broker, ensure you read the terms and conditions of their advice and fee structure so that you are not caught out.

Boon Brokers is a Whole of Market Mortgage, Insurance and Equity Release Broker with Excellent Trust Pilot reviews. Boon Brokers provides fee free mortgage advice and sources the best mortgage product for your circumstances.

Book your initial consultation with Boon Brokers to discuss your mortgage today.