Published 17 Jul 2014

Why Do You Need a Mortgage Adviser

We’ve asked one of our panel Mortgage Advisers, Modern Mortgage Solutions Ltd, to give us their view on what a Mortgage Adviser does and how their services benefit our customers.

A friend of mine was recently interviewing candidates to fill a Mortgage Adviser role at his firm.

“When I asked him to explain the difference between daily and annual interest, or how an offset mortgage works, he had no idea”. The candidate (who claimed to be highly experienced) wasn’t offered the job.

It made me wonder if a so called ‘professional’ couldn’t answer these questions how on earth is a member of public meant to know?

Of course, most mortgage advisers worth their salt would have no problem answering these and other questions. But you have to ask, what use is a mortgage adviser (a good one anyway) and do I really need one?

There is nothing stopping you arranging a mortgage yourself with a bank or building society. This will save you the fee you are likely to pay an adviser for his or her services. But is this really the best and most cost effective route? There are several reasons why using an independent mortgage adviser instead could actually be the way forward:

A mortgage adviser has a duty of care

A mortgage adviser has to recommend a suitable mortgage and be able to justify why the particular mortgage they have chosen is right for you. They will explain everything to you and answer all your questions. If you are badly advised you can complain and be compensated.

A mortgage adviser needs to be qualified

A mortgage adviser has to be qualified to give advice – don’t be afraid to ask your broker what qualifications he or she has. A lot of call centre and branch staff you will come into contact with at a bank are not qualified. A bank can make an appointment for you with one of their mortgage advisers, but that adviser will only tell you about the bank’s own products, even if a bank down the road is much cheaper. The advisers on Peabody’s recommended panel have years of experience specialising in affordable housing schemes. They are truly independent, so not tied to any particular lender.

Your adviser is on your side

These days lenders are all too quick to reject applications that don’t fit neatly into their lending criteria. An independent mortgage adviser is there to ‘fight your corner’ should there be any issues.

A mortgage adviser knows the industry

Lending criteria changes all the time. Mortgage advisers ensure they are kept up-to-date on any changes that may affect which lenders will lend to you. They are also aware of which lenders have a quick turnaround time and which have delays in processing applications. They have good working relationships with lenders and due to the amount of business they pass on to them sometimes have access to deals not available to the public.

Recommended by Peabody clients

Using feedback from previous clients, Peabody has built up a panel of Mortgage Advisers that come with a great deal of experience of Affordable Housing Schemes. By using one of these advisers you can be sure the advice being given is reliable and accurate and that all parties will be kept fully updated throughout the whole process.

Mortgages are a lot more difficult than they first appear. Knowing what rate, what term, which lender, what features, what insurance are all time-consuming and complex matters. A mortgage adviser is there to explain everything to you, be a constant point of contact and ‘hold your hand’ throughout the whole process. All you should have to worry about is which paint and curtains to go for – not something I can advise on!

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