Introduction? The purpose of this information is to describe the main advantages of seeking independent mortgage advice acquire the best either to purchase or remortgage home.
Precisely what are the different types of mortgage advice and where do you look forward to finding them? Non-advice - This type of large financial company offers the least consumer protection, they may simply ask a set of questions to narrow the shoppers requirements thereby filtering the number of mortgages available. They then present the customer which has a small list of possible mortgages for the consumer to select one appropriate. The individual protection this is based on the script of questions the broker asks the script can be a process determined ahead of the consumer appointment and is also impersonal therefore specific personal cirmcumstances tend not to be assessed. It also assumes that the customers the desired info is factually correct and also the final choice is done by the consumer (some additional knowledge may be required from the consumer). Although no advice emerged these brokers do handle the arranging of the mortgage about the consumers behalf, and therefore managing every one of the c hasing and removing stress from your process. Where would you expect non-advised brokers to exist? Well surprisingly many non-advised brokers are inside the traditional banks and building societies.
Advice-only This kind of services is when a home financing adviser uses their knowledge and skills to deliver the most suitable mortgage to suit a consumers personal circumstances. This will involve the full fact finding interview, affordability accessment, discussion around the consumers future plans and asperations, which provide key facts on the consumers requirements, and for that reason a way to the adviser to identify suitable products. The adviser is not going to however, handle the arranging in the mortgage, therefore the consumer would need to deal directly while using bank or buildings society to tidy up the mortgage. These advisers generally do not exist alone this is often a service provided over the 'Independent mortgage adviser' type below. And quite often occurs the most suitable mortgage is merely offered direct through street (i.e. not through mortgage advisers/brokers). The adviser would therefore offer an advice-only choice to the customer and sometimes impose a fee because of this service. Although th e client must deal directly with all the bank or building society they mortgage adviser often provides support to the consumer.
Tied mortgage advisers They come in two forms 'only offering mortgages from one lender or its very own mortgages' or multi-tied 'only offer mortgages from your limited number of lenders'. This clearly limits the amount of mortgage products offered to match a consumers personal circumstances and in a lot of cases they will often not be able to provide the most suitable mortgage product and for that reason advice may increase the risk for best mortgage they're able to offer, this may be woefully inadequate. Again present in traditional branches. A person calls to their local building society branch as well as their internal mortgage adviser can only offer mortgage products from that building society. Consumer choice and mortgage product suitability are considerably reduced. Whats more traditional branches often offer low mortgage rates/fees as a loss leader (marketing term to bring in business) and attempt to sell their tied insurance products which can be also woefully inadequate and expensive.
Whole of market advice By far the best coverage these advisers can offer mortgages from all great britain mortgage brokers (having mortgage adviser/broker routes). The vast amount of mortgages available through these advisers will probably cover the individual circumstances of your consumer. Whole of market mortgage advisers offer advice through conducting a full fact finding interview, affordability accessment, discussion for the consumers future plans and asperations then can arrange the mortgage through the lender thus aleviating the strain which comes when buying a house. These advisers are generally separate firms often found in the classifieds or online they're sometimes associated with auctions while on an initial meeting mortgage advisers should declare if they are whole of market and this will be disclosed inside the 'Initial Disclosure Document' they provide you. If you're not confident that an adviser is whole of market then inquire.
Independent whole of market mortgage adviser Finally this type of adviser has the ultimate scope in the mortgage market, not only can they offer mortgage advice through the whole of market (lenders with mortgage adviser routes) but tend to also provide an advice only process when they identify a high street direct deal is more suitable. The 'Independent' statement points too the adviser must provide you with the consumer a fee based service if need be. Consequently instead of the adviser taking commission as payment to the mortgage advice, the consumer can opt for paying a financier fee and any commission rebated towards the consumer. The advantages of the paid service may be the consumer knows the adviser are not swayed by higher commssion mortgage products when selected a suitable mortgage, however these days that is highly unlikely as the mortgage advice must convince the regulator why a specific mortgage is the most suitable. Some occassions the location where the commission is very considerable this could mean the consumer could receive more money compared to broker fee paid and thus can be better of using the fee based approach. Such as the author of the document Independent mortgage advisers are usually separate firms often on the high-street, phone book or online they are sometimes connected to estate agents. While on an initial meeting an independent mortgage adviser would are convinced that they are whole of market and that they provide a paid approach if need be and this will be disclosed inside the 'Initial Disclosure Document' they feature you. If you're not certain that an adviser is independent and/or whole of market then question them.
What can independent whole of market mortgage advisers do for consumers:
1.Treat customers fairly. 2.Support and inform the customer from initial enquiry through to completion and beyond. 3.Make time to gain detailed familiarity with the consumers personal circumstances and aspirations. 4.Provide impartial, expert, external scrutiny of mortgage products. 5.Identify if the consumers personal circumstances don't meet the criteria of specific lenders. 6.Can identify essentially the most likely lender in unusual situations, thus avoiding the need for multiple credit rating checks. 7.Assist in calculating affordability, making certain consumers can afford their mortgage and protection commitments, together with their other commitments. 8.Present an educated service on the housing market generally speaking (price negotiation, leasehold issues etc). 9.Expert guidance in complex scenarios (shared ownership/shared equity, right-to-buy, adverse credit). 10.Protect the customer from corporate sales tactics employed by some lenders and estate agency chains. 11.Give you a fully personalised service tailored to the people needs, not just a faceless flowchart "one size suits all" (non-advised) service. 12.Learning the urgency of some transactions and "go the excess mile" to meet deadlines. 13.Advise consumers to refrain from giving items that might not be inside their long-term interest. 14.Help the buyer - auctions, lenders and some amount, solicitors have a different agenda. 15.Explain the options and important things about different mortgage and protection options. 16.Pick the right products, from multiple providers per facet of a consumers mortgage and protection needs, and so increasing power they have to pay for their commitments, regardless if things make a mistake. 17.Pick the best protection providers for consumers with medical issues or unusual insurance histories. 18.Highlight unusual exclusions on protection and general insurance products. 19.Perform data input/entry for your consumer, minimising errors, omissions and non-disclosure. 20.Ensure that the provision of appropriate and customized protection products. 21.Collate, verify and provide documentation for that lender to minimise delays in processing, increasing the process for your consumer. 22.Liaise with other parties inside transaction and make certain that consumers are kept up to date with progress and developments. 23.Use past knowledge and awareness to predict problems and resolve them in advance. 24.Work as advocate to the consumer throughout the application. 25.Explain the mortgage offer and help in fulfilling the sale conditions. 26.Identify an alternative lender if declined without wasting the consumers time. 27.Liberated to act determined by conscience and fairness as not usually directly targeted on specific areas. 28.Assume responsibilty for that advice and recommendation provided, thus increasing consumer protection. 29.Can arrange property insurance in ample time to be prepared for exchange of contracts on purchases. 30.Will get appropriate lenders and insurers for unusual properties ( thatched roof, flying freehold flats etc). 31.Protect consumers from aggressive third-party marketing. 32.Protect consumers data and privacy. 33.Provide general support during what's acknowledged to be one of the most stressful events in life. 34.Often personally available outside of normal working hours to respond to questions or resolve issues. 35.Supply a knowledgeable "Ally" with what could be a very worrying process. 36.Encourage competition and innovation from lenders. 37.Value consumers and still provide a continuing long-term service, often several generations of the identical family.
