Vision for an independent organisation to represent UK landlords20:18 PM, 16th September 2018
About A week ago 62
It can be tempting to cut out the middle man when searching for a new mortgage, and people may even think they can save money doing so, but there are other considerations to take into account.
An important thing to understand is that when you receive whole of the market mortgage advice, your mortgage broker has a duty of care to you. In fact, as an advisor they should be so confident in the level of advice they are providing that they back it up by presenting it in a suitability report, which is then signed and dated. If you subsequently discover their advice is not up to scratch you can complain and seek redress through proper channels, and this is a valuable layer of protection for you.
On the other hand, you could decide to go straight to a high street mortgage lender. It would be nice to think that all you have to do in this case is choose the cheapest fixed or tracker rate, but in reality there are many more things you should be taking into account when you start looking. This is where the advice of a fully qualified and experienced mortgage advisor comes into play.
Some advisors specialise in particular areas of the market. If, for example, you want to invest your hard earned cash in an investment (buy to let) property the mortgages on offer require a completely different type of contract and the advisor has to understand different lenders’ approaches to property and calculating affordability, among many other things. As purchaser, it is good to know you are speaking to someone who not only knows what they are talking about, but – most importantly – can choose products from the whole range of available options.
So whole of market mortgage advice is just that, enabling the advisor to select for you from all the available products on the market. It is distinct from the advice of a bank or building society, which will offer products from its own range. It also differs from the advice of a multi tied adviser, who will only offer mortgages from a limited range of providers. Whole of market mortgage advisors offer impartial advice, with the aim of ensuring you choose the right product for your circumstances.
A mortgage is a large financial commitment and may last for a long period of time, so it’s good to know you have weighed up the options and received the information you need to make the best choice for you. After all, unlike a pair of shoes, you can’t take the mortgage back if it doesn’t fit.
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