Finding a mortgage for yourself can be a tricky and complicated business. Every mortgage in the UK has to be arranged by a qualified advisor. How can you find someone that can do this for you that’s going to do the best job possible? Well, you could go to your bank. Although many local branches have now been closed, you might still find some on the high street. What they’ll do is they’ll arrange for an appointment to see one of their advisors, although the advisors will only be able to advise on that particular bank’s products only, or you could try a local building society. Building societies are similar to banks, although the lending can often be more strictly regulated.
Also, what they’ll do is they’ll arrange an appointment with one of their advisors, who, again, they can only discuss that particular building society’s products.
You could try the confusing world of comparison sites. These are mostly lead generation companies who often sell the client’s information to the highest bidders who will then contact them directly. It’s really important that you’re careful when you give out any personal details on the phone or via the internet. And unfortunately, some comparisons sites often have low rates just to encourage you to click for more information. Most mortgages though are now arranged by mortgage advisors or brokers.
They both mean the same thing, qualified advisors who can go to a range of lenders. And using a broker can save you a lot of time and stress as they will handle everything from searching for a deal to applying and communicating with the lender on your behalf. And mortgage brokers have expert knowledge of the mortgage market and will also be able to recommend deals that suit your personal situation. They should also have access to software that allows them to search for mortgage deals much faster and more thoroughly than you could yourself.
A good broker will know which lenders are most likely to accept you and helps you steer clear of applying for deals that you’re unlikely to get, which could also have a negative impact on future applications. Most people nowadays find mortgage advisors through either personal recommendations or from an internet search. There are many different combinations of searches to put in, and this can provide a variety of names and websites. Have a really good look through to see how their websites look and how much information they contain. It’s important to know how many lenders a broker can access. I have what’s known as whole of market.
It means that there are about 120 different lenders that I can go to, with new lenders being included all the time. They vary from the well-known names to the more specialist lenders to complicated scenarios. Broker fees. There are still some brokers that don’t charge a fee. Instead, they rely on just the procuration fee that’s paid to them by the lender. In fact, that’s how I used to operate. But what I found was by charging a fee, I felt that I cared more about the clients and how I worked for them. Because after all, they paid me for their services. My current fee is £470 for the first application.
Everything I do after that, I don’t charge a fee for, whether it’s protection, changing products, remortgaging, or even moving house. Once you’ve paid, you’ve got me for life. Advisors should always tell you what their fees are before they start discussing mortgages with you. It’s really important to be upfront. Consider how they work. Are they based in a 9:00 to 5:00 office where you have to take time off to see them in there, or will they come and see you in your convenience in your own home, or can they work online with you with online meetings, phone calls and emails?
I’ve put in place a complete online process with a secure online client portal, tailored personal video reports, and secure client upload hubs to make sure that we all stay safe. Finally, and possibly most importantly, can I work with this person? Bearing in mind that mortgages are probably the biggest financial transaction you’ll ever make in your life, it’s vital that we all get this right and get the best result for you.
