What is a Mortgage Advisor?
A Mortgage Advisor is someone like Stephen Kerrigan of Mortgages Remortgages, who helps financially and specialises in offering advice to people wanting to get on the Property Ladder. One of the key things to remember when using an Advisor is that they have a duty of care towards you and are obliged to recommend the most suitable mortgages.
Why use a Mortgage Advisor?
What can Advisor do that you can’t? And why should you pay for their services when there are already loads of other costs when moving home or Remortgaging? Well, just so you are aware, at Mortgages Remortgages we offer a Fee Free Advice service. So, if you are asking yourself these questions, you may want to think twice about choosing the right Advisor that can pop up the right deal at no charge at all.
One important thing to understand is that when you receive a mortgage, your advisor has a duty of care to you. They must recommend a suitable mortgage and be able to justify why the mortgage they have chosen is right for you. If their advice is not up to scratch, you can complain and be compensated.
In contrast, if you go directly to a high street mortgage lender, don’t take advice, and end up with a mortgage that later becomes unaffordable, you may not have so much legal recourse. (However, it’s the lender’s responsibility to ensure affordability – so even if you buy direct, you could have some recourse. Nonetheless, a broker can still offer a valuable layer of protection.)
Mortgage Advisors must be qualified to give you advice, whereas a person you speak to in a lender’s call centre may not be so well qualified. That said, new regulations mean that all call centre staff need to be advisors or must refer you to someone who is. Therefore, if you visit in-branch you’ll be able to arrange an appointment with one of their mortgage advisors.
When you are wanting advice, it is safe to be reinsured that we are on your side when it comes to choosing your mortgage. They aren’t on the lender’s side, they’re on yours, and they’ll give you access to far more products than if you went direct. You should expect unbiased advice and to be able to choose from a range of lenders and subsequent products, rather than being restricted to the single range of the lender you contact directly.
Stephen Kerrigan knows the Industry
The eligibility criteria have tightened considerably over the last few years. The rules are designed to ensure borrowers can prove affordability, even in the event of a rate rise. Understandably, these extra checks have increased application times.
That’s why it’s so important to stay in the loop – and to have a mortgage advisor on your side who understands it all. We deal with lenders on a day-to-day basis – they’ll know what the application process is like for each one and which lender can process things with minimal delays.
Advisors also know the background criteria that each lender has and can bring this experience to bear when advising you and processing your application.
Then there’s the fact that, because we may put a lot of business to a lender in a year, they can exert influence and chase things in a way you just can’t do by yourself – and that can be invaluable should things get held up.
It’s not just about getting a Mortgage
Stephen Kerrigan, Mortgage Advisor won’t just advise you; we will also look at any related life insurance, payment protection and even buildings and contents cover you have.
We will recommend insurance based on your new mortgage arrangements to make sure you are fully protected in the event of: Death, Critical illness (such as cancer, heart attack or stroke), and Redundancy.
These can be a lot more difficult than they first appear. Knowing what rate, term, lender, features and insurance to get are all time-consuming and complex matters.
Comparing the best deal is a good place to start – it’s great to get an idea of what’s out there. But choosing a mortgage is a process far more complicated than simply opting for the lowest rate or the best incentives.
An advisor takes your whole circumstances into account to recommend a suitable product. It’s this thorough, professional look at your finances that makes their advice well worth paying for.
Pros of using a Mortgage Advisor
They work for you – not the lenders. So, you can be sure that they will be showing you the best products out there, not just the best products in one lender’s range.
Great, in-depth knowledge about the market and individual lenders – meaning they know who will be more likely to look favourably at your application.
Provide independent advice on a range of related financial products such as insurance, payment protection, etc.
Cons of using a Mortgage Advisor
Some Mortgage Advisors are paid either by the lender or by you. If the fee is covered by the lender, you need to be concerned whether you might be steered to a more expensive loan because the commission to the broker is more lucrative. If you pay the fee, figure it into the mortgage costs before deciding how good a deal you are getting. And be sure to settle all fee issues up front before you sign anything or start working with a broker.
How do offset mortgages work?
So, it’s pretty simple really, we let you link your mortgage to your savings and the balance is used to reduce the amount of interest charged on the mortgage. The way this works is by having your savings ‘offset’ against the value of your mortgage, so you’ll only pay the interest on your mortgage balance minus to your savings balance.
Your savings don’t actually repay off any of the mortgage, they just sit alongside it and save your interest.
Still stuck? Here we’ve done an example for you: