What is a mortgage adviser? How they help you find the most suitable deal

11th November 2019

Broker on phone-01

A mortgage adviser (or broker) is a regulated mortgage expert who'll assess your options and help guide you through the process of getting a mortgage.

Whether you’re buying a home or remortgaging, professional mortgage advice can be a real help.

With so much choice when it comes to deals, lenders, and government schemes it can be tricky to work out what’s best for you.

Are mortgage advisers all the same?

There are three main types of mortgage adviser:

  • one that works for a specific lender

  • one that looks at deals from a limited list of lenders

  • one that searches the whole market for a wide range of products

Brokers that search the whole market could be your best option as they’re not restricted to certain products or lenders.

Bear in mind, though, that they can’t advise on mortgage deals sold directly by mortgage lenders.

These are mortgages that are only available through a lender. The vast majority of mortgages are available through a broker, however.

Are mortgage advisers regulated?

All mortgage advisers are regulated by the Financial Conduct Authority (FCA).

FCA rules mean that if you use an adviser to find and apply for a mortgage, they have to tell you if there are limits on the range of mortgages they can recommend.

All mortgage advisers must offer you advice when recommending the most suitable mortgage for you.

How are mortgage advisers paid?

They are several ways that a mortgage adviser gets paid, and they should tell you upfront which one it is. The options are:

  • you pay the mortgage adviser a fee

  • the lender pays the adviser a commission

  • you pay a fee, and the adviser also earns commission

Why use a mortgage adviser?

A mortgage adviser checks your finances to make sure you can afford a mortgage. They do this by carrying out an affordability assessment or asking you questions about your particular circumstances.

They help you take into account any fees and incentives attached to the mortgage, not just the interest rate.

This is the ‘true cost’ of your mortgage and it means that you know precisely what you’ll be paying every month.

Mortgage advisers should only recommend a mortgage that’s suitable for you and will tell you which ones you’re likely to get and which you’re likely to be rejected for.

This is important because being turned down for a mortgage could affect your credit score, which could make it more difficult to get a mortgage in the future.

Some mortgage brokers have exclusive deals with lenders that aren’t available elsewhere. Trussle has access to 12,000 deals from more than 90 lenders, for example.

When you’ve chosen a deal, a mortgage adviser usually does the paperwork for you, so your application should be dealt with faster.

They’ll also submit it to the lender, track its progress, and keep you in the picture until you’ve got the keys to your new home or a new mortgage.

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