Independent mortgage advice – what it is, what you can expect from it, and what do you need to consider?
There are various sources available to the borrower when seeking a mortgage. One option is to apply direct to the lender where no advice is received and the lender provides information only, on which you, as the client, make a decision.
The difficulty with this is that the borrower cannot be sure the lender will accept them as a suitable risk – nor that the products offered are the most suitable and competitive on the market.
Using an independent mortgage broker
Another option is for the borrower to engage the services of a mortgage broker. Mortgage brokers provide a service whereby they provide advice and recommendation to the borrower.
Mortgage brokers trade in two ways – some work from a limited panel of lenders. Independent mortgage brokers consider lenders and products from the whole of the UK market.
Independent Mortgage Advice – the process
When you engage the services of an independent mortgage broker they will initially gain a clear understanding of your situation. They will consider your income and outgoings, your key objectives, and any particular complication that make effect your application.
The next stage is to discount those lenders that do not offer a suitable product or are unlikely to accept your application.
This leaves a short list of products that meet your main objectives, from lending sources that will perceive you as a good risk.
Your independent mortgage broker will then make a recommendation of a suitable product and lender. Details of the product will be provided to you in writing.
Once you have had a chance to consider the product and had any queries answered, your broker will help you through the application process and dealing with the lender on your behalf. In this way you can benefit from access to the whole of the market, expert advice on which lenders will consider you, and a firm recommendation on a competitive and suitable product.
How your independent mortgage broker is paid
Your independent mortgage broker is normally paid a fee by the lender for introducing you as a client. In addition your broker may charge you a fee for their services.
Details of any fees charged will be explained to you before you incur any cost.
As an alternative your independent broker offers you the option to pay a flat fee for their services and receive a refund of any payment received from the lender.
Using an independent mortgage broker is the simplest and safest way to obtain a mortgage.
Our team are waiting to assist you – contact us now.
