Is It Free To Talk With a Mortgage Adviser?

Usually yes — the first conversation is free with most brokers, and a good many charge nothing at all, because they are paid a procuration fee by the lender when the mortgage completes.

Where a fee does appear, it is normally charged at one of three points: when you apply, when the offer is issued, or on completion. It is typically a few hundred pounds, and it must be disclosed to you in writing before you commit to anything — that is an FCA requirement, not a courtesy.

So the question to ask on the first call is not "is this free?" but "what do you charge, at what point, and are you whole-of-market?" A broker who cannot answer all three plainly is telling you something.

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Key Takeaways

• Mortgage advisers set their own charges for consultations, applications and delivering a mortgage offer.
• Most advisers will not charge for a meeting and choose to only charge if the mortgage case will take a lot of time.
• Mortgage advisers are paid by the lenders for arranging the loan in the form of a commission.
• It is a requirement for Mortgage advisers to explain their charges structure and how they are paid upfront before beginning the meeting.

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Is it free to talk with a Mortgage adviser?

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.

What are the charges for Mortgage advice?

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.

Why speak to a Mortgage adviser?

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.

Using an Independent Mortgage adviser

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.

Read our insight for more information on the mortgage advice process. You can also see what to expect when using a mortgage adviser from start to finish.

Where can you find a free Mortgage adviser?

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.

If you also need broader money guidance, our insight on finding a financial adviser in the UK explains how that differs from mortgage advice.