Seek Independent Advice

Independent Mortgage Advice

Obtaining a new mortgage, remortgage or commercial loan through any tied advisor, particularly those linked to just one organisation (such as a bank) is limiting your options. Enlisting the services of an independent advisor means that you can be sure that you are getting the best advice and access to products from the whole of the market (in most cases)

When you speak to a mortgage advisor working for a bank, they are usually officially classified as tied advisors. A tied advisor is someone who works for one organisation, or perhaps a few organisations, but crucially, they only have to recommend products from their own company or panel. The products that they recommend have to be the most suitable for you from their range, however this does not necessarily mean that they are the best available. In fact, if you ask about products from another provider or a particular range that is not on offer, a tied advisor is not obliged to tell you anything other than that they do not offer such products. This severely restricts their ability to advise you fully.

The alternative is to seek independent advice. Independent mortgage advice comes in two guises, whole of market advice and advice from a 'range of products'. Advisors who advise on a range of products are still dubbed independent, but only have to provide information and guidance on products from a limited range of providers. The range on offer will vary dramatically, and if you visit an advisor of this type, ensure that they can source from a good number of lenders.

Whole of Market advisors provide truly independent advice and can as the name suggests source products from the whole of the market. The advice provided has to be the most suitable for you and there should be no bias towards any particular provider or product type. The benefits are obvious, you can be sure that you are getting the most suitable advice to meet your needs. This could be the best interest rate or it could a loan which offers the greatest flexibility.

What are the costs?

With increasing regulation in all areas of financial planning, the costs associated with independent financial advice of any kind are more transparent than ever. Your mortgage advisor should provide you with an Initial Disclosure Document in the first instance which outlines the way that they do business, and how they will charge you. Mortgage advisors can be remunerated by fee, commission or a combination of the two. Depending on the size of the loan, you may not have to pay anything out of your own pocket.

As well as being able to advise you on mortgages, most mortgage advisors will also be able to assist you with the associated protection products. If you seek advice from an independent finanicial advisor, they may also assist with other areas of your financial planning, such as investments and pensions

To discuss your requirements with an advisor, please feel call us on 01626 360654

Your home may be repossessed if you do not keep up repayments on your mortgage.

For mortgage advice we can charge a fee of typically 500 or we can receive commission from the lender.

Buy to let mortgage adviceCondidering Buy to Let?

A Buy to let mortgage allows you to buy a property and rent it out for commercial gain. The rent that you receive should at least cover the monthly mortgage payments or you will have to pay the difference yourself. The benefits are the potential to gain from an uplift in valuation or provided the rent received is higher than the mortgage costs, equity can be accrued in the property over time or an income can be derived.

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