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How to get Free Mortgage Advice

When you’re looking to buy a home, it’s likely that you’ll hear about both mortgage advisors and mortgage brokers. Essentially, they’re both the same thing. They’re both people who will provide professional advice to help you get a mortgage. However, free mortgage advice is difficult to come by, as most mortgage advisors charge for their services.

When you’re looking for mortgage advice, UK based advisors are your best option, but how can you get free advice? In this post, we take a look at the questions you should ask to not only help you get free advice, but also the best possible advice.

  • Are you Independent?

Independent mortgage advisors can offer you thousands of products from across the market. However, a tied mortgage advisor can only tell you about the products offered by the company they work for. These mortgage advisors are generally based within banks or building societies. Online estate agents can also offer free mortgage advice, and we’re no different. You can call us for award winning free mortgage advice.

When selecting a provider, you should ask your mortgage advisor whether they are ‘whole of the market’ advisor. Some ‘whole of the market’ mortgage advisors will only use a select panel of lenders, while others will use all available lenders. It’s important you get all available information. Ideally, you want a free mortgage advisor who uses all of the market. However, these advisors will often charge a fee, so ask them…

  • How do you Earn your Fee?

Some mortgage advisors charge a flat fee, while others charge a percentage based on the amount you’d like to borrow. As we say, some free mortgage advisors (like us) won’t charge a fee at all. However, the majority of these still receive a commission payment from the lender they arrange your mortgage through. It’s important you know how your free mortgage advisor earns their money.

Your mortgage advisor should be upfront with you about the costs and you should ensure you know exactly how much you’ll be paying before you enter an agreement with them.

  • What are your Qualifications and are you Regulated by the Financial Conduct Authority?

Free mortgage advice may not necessarily be the best mortgage advice, and you need to work out whether your adviser is qualified to advise you. The most recognised qualification is a CeMAP (but it’s not the only one). If a mortgage advisor informs you that they’re fully qualified and they are not, you should contact the Financial Ombudsman.

Your mortgage advisor should be able to assess your needs and eligibility before recommending the most suitable product for you, and only qualified advisers will be able to do so. By going with a fully qualified mortgage advisor, you’ll get the most protection as a customer.

If your mortgage advisor has all the appropriate qualifications, they’ll be regulated by the Financial Conduct Authority. You can look for them on the register, here.

  • How Can I Work Out the Best Deal for Me?

Now, once you’ve selected either a free mortgage advisor, or a paid one, you have to maximise their knowledge and expertise.

Remember that there are several different types of mortgage available, including:

  • Fixed rate
  • Capped rate
  • Variable rate
  • Tracker and
  • Buy-to-Let (among others)

Your mortgage advisor should be able to explain all of the differences between these products to you in detail, allowing you to make an informed decision about which is best for you.

In addition, your advisor should be able to inform you about how much your deposit amount will affect the amount you need to borrow. The amount you have available as a deposit will be dependent on your financial situation, and providing your mortgage advisor with relevant documentation at your first meeting will help them establish the right advice for you.

  • What Makes the Mortgage You’re Recommending the Most Suitable?

Everyone who visits a mortgage advisor will have a unique set of circumstances, and yours are no different. By passing all of the relevant detail and information onto your advisor, they should be able to make a sound decision.

However, you should continue to question them as to why that’s the right one for you. If there’s something you’re unsure about, ask for greater detail about why that’s the most suitable for you; especially if it’s a type of mortgage you’ve never heard of. Ultimately, even free mortgage advisors who are paid by someone else are working for you, so ensure you get the best possible deal by probing them and getting them to justify their decisions.

 

Online estate agents, such as us here at House Network, can provide free mortgage advice. We understand that the process can be daunting and confusing, and also that it can be costly or expensive if you make the wrong decision. Speak to one of our free mortgage advisors today to find the best deal for you.

Image courtesy of iStock.