Figuring out how to secure a mortgage can be a complex operation. You may be looking to raise funds for a house purchase or rearranging the mortgage on your current home, either way you will need to make sure that you are fully ‘clued up’ on all the various options available to you.
Can’t I sort my own mortgage?
Most people find that it’s very time-consuming (and confusing!) to do the research themselves so, instead, they opt for using a trusted mortgage advisor who can do the leg work for them.
There are lots of mortgage advisors out there so choosing one can be a bit of a minefield. We always suggest that you ask friends and family for a recommendation or have a good look at the google reviews for mortgage advisors in your area. Then call a couple and you should get a good sense pretty quickly of which one will best understand your needs.
When choosing a mortgage broker, it’s important to understand whether they are a ‘whole of market’ broker or not. Those who are have access to pretty much every rate out there as well as exclusive deals that are not available direct to customers.
They will have no affiliation with any specific mortgage lender so can genuinely find the best rate to suit you with no personal benefit for recommending one over another.
Mortgage advisors who are not ‘whole of market’ are associated with fewer mortgage lenders and can only place your mortgage with a provider on their panel (they can occasionally go outside this panel but it is rare). They will not have access to as many options for you and therefore cannot guarantee that they are getting you the best possible mortgage product.
But do I have to pay to speak to a mortgage advisor?
In short, no.
An initial chat with a mortgage advisor, whether they are ‘whole of market’ or not will, in most cases, be completely free.
During that chat, they should be able to give you a good idea of whether or not you will be eligible for a mortgage or of roughly how much you might be able to borrow. They may even be able to secure you a ‘decision in principle’ without charging any fee. Once you decide to go ahead and submit a mortgage application a fee may be applicable.
The fee charged by a mortgage broker can range from anywhere from £150-£700 depending on their personal fee structure. Some advisors will charge a fixed fee whilst others may structure their fee based on the value of the loan you are applying for. Some advisors will charge an upfront fee, others will charge all fees on completion. As with most things, ‘you get what you pay for’ can certainly be applied to mortgage advice.
Whether you are paying a fee or not, you should absolutely expect that your advisor be happy to answer your questions throughout the process, that they chase your application right through to completion and that they keep you updated throughout.
At Hudson Rose we are very happy to have a chat about your situation and won’t charge you any fee for the initial conversations and research – no matter how long you wish to chat for! Give us a call or use our fancy online calendar to book an appointment at a time that suits you!
And while you’re here why not have a read of some more handy mortgage blogs