Independent, fee-free counsel can be priceless if you’re looking for a new mortgage. Before you begin, find out what to anticipate from free mortgage counseling.
There are a wide variety of mortgages available from hundreds of lenders, whether you are a first-time buyer, moving, or staying put and remortgaging because your current contract has expired.
Even if you have expertise in switching mortgages, a lot may have changed since the last time you did it. not just the mortgage offers themselves, but also your individual situation, including your income, expenses, and work status. So where do you even begin?
The advantages of free mortgage counseling
- Finding an independent mortgage broker who will handle all the legwork for you is a wise place to start. For instance:
- Learn about your financial situation, including your income, expenses, and savings. These details allow them to determine your affordability.
- Find the most flexible mortgages that meet your needs while comparing rates and costs.
- Give suggestions on the deals you have the best chance of being accepted so you can confidently apply for them.
- assist you in gathering the required documentation and ensure that it is appropriately filled out
- the application process with you and be available to answer any concerns
- Communicate on your behalf with the chosen lender and take care of any issues that could result in unneeded delays.
- Give you advice on any additional financial products that are important in addition to your mortgage, such as life or house insurance
You must make sure the broker you select is impartial for this procedure to work as well as possible. But what does this actually mean?
There are three primary types of brokers you may encounter when looking for mortgage assistance services:
- Mortgage brokers that are affiliated with a particular lender
- Multi-tied brokers: these brokers are connected to a number of lenders through a “panel.”
- Independent mortgage brokers, commonly referred to as “mortgage advisers,” are brokers who obtain mortgages from the entire market. Keep in mind that some “direct-only” offers are only accessible through direct applications to lenders.
Due to the fact that tied and/or multi-tied mortgage brokers do not have access to all mortgages, you may lose out on a package that is either more affordable or better suited to your needs. In this situation, choosing a ‘whole of market’ or independent mortgage broker may be a sensible decision. These might include, for instance, Fluent and Mortgage Advice Bureau, two of our broker partners. To reiterate, independent brokers will not have access to agreements that are “direct-only,” even though they are independent.
How am I supposed to tell what kind of mortgage broker it is?
Your broker is required by the Financial Conduct Authority (FCA) to be forthright and transparent about the type of advice it is providing at the beginning of the process.
Along with the amount, your broker should disclose how it is paid. For instance, some will charge you a fee while others will collect a commission from lenders. The only mortgage advisors who can claim to be “independent” are those who give you a choice.
At the beginning of the procedure, you will receive a European Standard Information Sheet (ESIS) including this information. The more well-known Key Facts Illustration (KFI) document has lately been replaced by the ESIS.
Make sure you understand and are satisfied with the ESIS by carefully reviewing it.
What is the price of a mortgage broker?
The good news is that you don’t have to pay a dime for independent mortgage advice. In actuality, fee-free independent brokers receive 100% of their fees as lender commissions.
Mortgage Advice Bureau and Fluent, two of our MoneySuperMarket mortgage broker partners, are two instances of brokers who provide free mortgage advice. Noting that they are also independent brokers is important.
If you choose a broker that charges a fee, the fee will either be computed hourly or on a flat fee basis. It will be recorded in the ESIS in both situations.
What inquiries ought I to make of a mortgage broker?
You should confirm that a mortgage broker is governed by the FCA in addition to learning whether it serves the entire market or is affiliated with specific lenders.
This will ensure that the advice you receive meets a specific level. Additionally, you will be able to file a complaint with the Financial Ombudsman if something goes wrong.
Make sure you understand exactly what will happen if you decide to leave the process before it is finished, as well as whether or not you will be paid for the advice provided. For instance, it’s possible that your situation has altered, you’ve changed your mind, or maybe you’ve discovered a better offer.
Can advice on mortgages help my application?
When you apply for a mortgage, the lender will perform certain investigations to see if you are a trustworthy borrower. For instance, they’ll want to know how effectively you’ve handled past loan repayments and check your credit score. Sometimes, a small delay is all it takes to harm your credit history.
Mortgage brokers may typically evaluate your finances, correct minor errors in your credit history, and increase the likelihood that your application will be approved. Additionally, brokers frequently are aware of the requirements set forth by each lender as well as which lenders are more likely to approve you.
Can I obtain a mortgage on my own?
Yes, some lenders might let you apply for a mortgage whether or not you’ve sought guidance. Generally speaking, you should be able to do this by submitting an application form via email or postal mail. But without a mortgage broker’s assistance, you’ll have to do all the research and understand the specifics of the mortgage you want.
If you are a mortgage professional who is aware of the hazards or if you are remortgaging a property to obtain money for business purposes, lenders are typically more inclined to arrange your arrangement. Additionally, if your assets are worth $3 million or more in value or your yearly income is over £300,000, you might be able to obtain a mortgage without seeking professional guidance.
Keep in mind that if you choose to obtain a mortgage without seeking guidance, you are fully responsible for the decision. Instead, the broker will recommend the best choice for your circumstances if you obtain mortgage advice. You have more protection and can make a complaint claiming the mortgage advice was inappropriate if you later find out that their recommendation was inappropriate.
Where can I find assistance with mortgages?
You are in the right place if you’re looking for impartial, free mortgage advice.
The Mortgage Advice Bureau and Fluent are partners of MoneySuperMarket. Both are completely free and cost you nothing.
Our ultimate goal is to assist you in locating the ideal mortgage option for your requirements and financial situation.