You may be considering buying a home, but are unsure who to speak to about a mortgage. One option is to talk to your bank, the other option is speaking with a mortgage adviser. Moving home is already an expensive venture and when deciding who to speak with, the question on many people's minds is, is it free to talk with a mortgage adviser?
In this insight, we will explore the cost of talking with a mortgage adviser and how they can help you find the right Mortgage.
It is free to talk with many mortgage advisers, as they are compensated through commissions paid by the lender. Some advisers may charge a fee upon Application, Offer, or Completion, but they must tell you their charges structure upfront.
Despite many advisers not charging for ongoing consultations, some opt to charge a fee when the Mortgage is offered or completed. Again, details of this charge must be provided upfront.
Other advisers choose not to charge a fee at all but may instead opt to hold the right on whether they should proceed with a mortgage application based on how much work may be required for it to proceed.
Whatever you are looking for, there are enough advisers in the industry who offer different charges structures, you are likely to find someone who suits what you are looking for. Be sure to check what the costs will be before talking to an adviser.
These charges for advice can be as a flat fee, an hourly rate, or a percentage of the amount you borrow for your Mortgage, or a Mortgage adviser may choose to not charge anything at all. That is because they can earn a commission payment from the Mortgage lender for providing the loan and service to you behind it.
First and foremost, speaking to an adviser will give you the first point of contact for any guidance you need on the mortgage process. It adds a personal touch to the whole experience. You can form a lasting financial relationship with this adviser, and they may go on to help you in the future. Talking with the same adviser over a period of years may make having difficult conversations easier for you as they get to know you and your family. This experience is lost as people start to use online channels more and more.
Independent mortgage advisers have access to a wide panel of lenders, and that provides options. Options across different affordability assessment results, different policies, and different interest rates. They will search through this panel on your behalf to recommend the best mortgage for you. If you were to try to find these mortgages on your own, it would involve a lot of research and plenty of time as you would need to talk through your circumstances many times with different lenders.
An adviser might help you find a lender that can help you if you have circumstances that differ from the standard applicant. For example, if you have only been self-employed for a short while. This can improve your chances of being accepted.
If you go down the non-advised mortgage route it means you are choosing not to have a recommendation based on your needs. If the Mortgage you choose turns out to be unsuitable, for any reason, you will not be able to make a complaint about the decision you have made. On an advised service, you can take your complaint to the Financial Ombudsman Service, giving you more rights than when you use a non-advised service.
Non-advice could also mean you have a higher chance of being declined for a Mortgage. That is not because advice is a condition that is looked at for acceptance. It can make a difference because a Mortgage adviser will have a clear idea of which lenders will be suitable for your application and most likely to fit what criteria you are working with.
If you use a Mortgage adviser, they are required to provide information upfront which details how they do Business for you. It is required that they give you information on their charges for advice.
By using Sunny Avenue, you can find mortgage advisers who list their charges on their profiles as free ongoing consultations. If you're unsure where to start with seeking advice, you can complete the Sunny Fact Find for Mortgage advice. The answers you provide help us to find the best-suited adviser. Your adviser then contacts you for a no-obligation chat about how they can help. You decide how to proceed.
To bring the insight to a close and answer the question, is it free to talk with a mortgage adviser - Many advisers offer free consultations as they are paid via a commission from the lender. Finding one will be easily achieved by using a directory service like Sunny Avenue.
Stuart is an expert in Property, Money, Banking & Finance, having worked in retail and investment banking for 10+ years before founding Sunny Avenue. Stuart has spent his career studying finance. He holds qualifications in financial studies, mortgage advice & practice, banking operations, dealing & financial markets, derivatives, securities & investments.
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Think carefully before securing debts against your home. A mortgage is a loan secured on your home, which you could lose if you do not keep up your mortgage payments. Check that any mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.