What do mortgage advisors do?

A well-trained and skilled mortgage broker acts as a financial consultant with expertise in the mortgage market. These financial consultants look at the various options and find the right mortgage with the rates that suits the budget requirement. They can help identify and recommend the lenders and buyers in the housing market, and have the best interest for you so they justify any leads that they may have in the mortgage market for you.

Usually, mortgage requirements depend on various individual factors, such as;

  • Size of the deposit
  • Repayment preference
  • Interest rates
  • Credit history, etc.

Mortgage advisors are categorized into two groups; tied or multi-tied mortgage brokers or whole of market mortgage brokers.

Tied or multi-tied mortgage brokers only deal with a specific set of lenders or groups of lenders. They may offer limited reach or recommendations; however, it also adds to the advantage of their clients who can then get exclusive deals from their brokers.

Whole of market mortgage brokers, on the other hand, have access to the whole market and not a direct link to a particular lender hence they can offer wider recommendations. But they often impartial advice since they have multiple options available.

  • How much do the mortgage advisors charge?

Mortgage advisors offer their services to their clients to find the suitable options in the market that fit their requirements, in return brokers charge a fee or a commission from either one or both parties involved in the transaction. According to the recent research survey, 59% of the mortgage brokers in the UK charge a fee, but there are some exceptional brokers who give advice for free. The fee structure may vary according to the price level and it often does not correlate with the service level provided.

Related: Reasons why you need a mortgage advisor specialist

The cost of mortgage advice varies between £400- £500. Most of the lenders pay the brokers a commission of about 0.35% of the loan size so say if the mortgage is for £100,000 the commission would sum up to £350.

It is important to note that using a mortgage advisor is less costly over the longer term.

  • How to select the mortgage advisor?

One of the most important things to consider is whether the broker is a whole of the market mortgage broker or not. Whole of market brokers have more options from which they can recommend and they can help in finding a cheap and yet most suitable mortgage deal which would possibly save a lot money, time and effort.

Another important factor to take into account is the direct mortgage. Most mortgages are available through brokers but some are also available directly. Brokers usually do not tell if a particular mortgage deal could be taken directly as well, hence it is important to research and ask about the “direct- only” mortgage.

Additionally, consideration is given to whether the mortgage broker will be charging a fee or a commission, and how much will that be. It is also crucial to understand and know whether you want a fixed rate or discount in the mortgage deal.

It’s compulsory to think of the long-term when selecting a mortgage broker. Buying a home is generally the most expensive purchase in our lives, so it makes sense to make the most informed decision possible.

On Mortgage Brokers Directory – MBD, you can see what sort of mortgages you’re eligible for, and arrange a chat with an expert.