In the UK we tend to strive towards getting on the property ladder and having a mortgage. In many other parts of the world this is not considered important and not something people strive towards. However, here in the UK, it’s very much something that many people want to move towards, so, in the spirt of that, let’s look at how we can best go about that.
If getting on the property ladder and having a mortgage is something you are striving for, getting advice around that mortgage is vital. Why is that? In this article I will look at the importance of using a mortgage advisor for this milestone. It should be noted, that mortgage advice is not just for first time buyers. Anyone who is taking on a new mortgage, for a new house move, or re-mortgage should get advice from a mortgage adviser and broker. Even if you want to build an extension or add a conservatory to your property – take advice.
Taking on a mortgage can be very daunting for so many people. This is understandable of course, as a mortgage is an agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you’ve borrowed plus interest! If you think about it in those terms it’s quite terrifying.
Why you should get mortgage advice
Independent mortgage advisers and brokers have a wide knowledge of the mortgages available from a range of different lenders. They will take the time to search the market on your behalf and recommend the best deal, rather than you just going through your own bank for example. This way, you get to see all the deals out there.
To find deals on your own involves a lot of research and talking through your circumstances over and over again with different lenders. Most people just don’t have the time for that, so end up taking the first or second mortgage they see, rather than really looking broadly at the best deal for their circumstances.
An adviser can also improve your chances of being accepted for a mortgage as they’ll know which lenders are best suited to your particular circumstances. This is a massive advantage and can save a lot of time and disappointment. This is especially important if you don’t have a large deposit, haven’t been with your employer for long or if you are self-employed.
A mortgage adviser might have exclusive deals with lenders, not otherwise available. They also often help you complete the paperwork, so your application should be dealt with faster than if you were doing this yourself. They’ll help you take all the costs and features of the mortgage into account, beyond the interest rate. A good broker or adviser will only recommend an appropriate mortgage for you and will tell you which ones you’re likely to get.
Risks of not getting advice
If you don’t get balanced advice, you could end up with the wrong mortgage for your situation, which could be a costly mistake in the long run. You could also easily spend time applying for a mortgage that doesn’t fit the lender’s lending criteria.
If however, you get advice and the mortgage later turns out to be unsuitable for any reason, you can make a complaint. If you have done it yourself, there is no one to take things up with. Not getting advice means you have to take full responsibility for your mortgage decision.
When to see a mortgage adviser
It’s really important to see a mortgage adviser at the start of your mortgage journey, before you get too far down the line. Whether it’s your first mortgage or you’re looking to re-mortgage. It will save you a lot of time and effort in the long run.
It’s good idea to speak to a few different firms to see what’s on offer and to compare fees. Don’t necessarily go with the first one you speak to. Although, if you know anyone who has been through the process recently and has a recommendation, then you could start there.
There are two main types of mortgage advisers for you to consider. Mortgage advisers connected directly to lenders and mortgage brokers. The former will only recommend mortgages from that specific lender, so immediately that limits your options. The latter can look at a range of mortgages from different lenders products, which broadens your options.
There are mortgage brokers out there who are genuinely passionate about empowering their customers to understand and manage their mortgage with all the right knowledge and tools. Good luck!