Questions to ask a mortgage advisor?
When seeking mortgage advice and looking for a suitable mortgage advisor there are a few things you should have in mind and consider. Asking your mortgage advisor these questions will help you assess if you want to move ahead with this mortgage advisor or if you want to consider alternatives.
Below are a few questions you should consider asking your mortgage advisor
- Does the mortgage advisor offer whole of market mortgage advice?
- Does the mortgage broker credit search you?
- Does the mortgage advisor have access to special deals from mortgage lenders?
- Does the mortgage advisor charge a fee for their mortgage service and how much?
- Does the mortgage advisor have a panel of conveyancers they work with?
- Does the mortgage advisor specialise in any kind of mortgage?
- Does the mortgage advisor also offer mortgage protection?
- Is the mortgage broker authorised by the FCA?
- Does the mortgage broker think you will be able to get a mortgage
Does the mortgage advisor offer whole of market mortgage advice?
The whole of market advice means the mortgage broker covers almost all of the products available in the market. Some mortgage brokers may only offer products from a few mortgage lenders.
You will need a mortgage broker who covers the whole of the market as this will mean they are looking at a wider range of mortgage products which you may be eligible for.
You will need to know if a mortgage broker does a credit search on you as some mortgage brokers may perform a hard credit search on you which may leave a mark on your credit profile.
This is in contrast to a soft credit check which leaves no mark.
A hard credit search may be an issue when you are looking to get a mortgage as the mortgage lender may look at it as you applying randomly for credit.
Even worse, a hard credit search may temporarily make your credit score go down and this will not look good to a mortgage lender who is also going to hard credit search you and may lend to you based on your credit score.
Does the mortgage advisor have access to special deals from mortgage lenders?
Some mortgage advisors may have access to special deals from mortgage lenders if they are big enough and even the smaller mortgage brokers who work with mortgag packagers may be able to access specialist deals for their clients.
The fact that a mortgage broker has access to special deals doesn’t necessarily mean you will be eligible for them or that if you are eligible for them, that they are the best mortgage products that suit you.
In some instances, its good to know if a mortgage broker has access to special deals but this may not matter much to you.
Does the mortgage advisor charge a fee for their mortgage service and how much?
Some mortgage advisors may charge fees for their services. These fees can be up to 1% of the mortgage but are usually significant enough that you should ask the mortgage advisor this question before the mortgage advisor starts any work for you.
There are now a host of fee-free mortgage brokers, including huuti.
Mortgage brokers get paid a commission by the mortgage lender and this is how mortgage brokers can be fee-free.
Does the mortgage advisor have a panel of conveyancers they work with?
The home buying process can be very time consuming and the conveyancing process is usually what takes up so much of the time.
If the mortgage broker already has a panel of conveyancers that they work with then this may mean they already have a good working relationship with them and this could mean faster response times and an all-around smoother process.
This is of course not a guarantee but it is a question worth asking your mortgage advisor.
Does the mortgage advisor specialise in any kind of mortgage?
Some mortgage advisors will specialise in a particular type of mortgage and this may be relevant to you if you fit that particular band.
Some mortgage advisors may specialise in bad credit mortgages, self-employed mortgages, HMO mortgages, mortgages for flats, mortgages for Bankrupts, mortgages with CCJs, mortgages with DMPs etc.
Does the mortgage advisor also offer mortgage protection?
Some mortgage advisors will also have a panel of mortgage protection products which they can advise you to get along with your mortgage.
Mortgage protection is essentially insurance that you pay for your mortgage so if you are ever unable to pay your mortgage due to critical illness, redundancy etc then your mortgage insurance will cover your mortgage payments.
All mortgage brokers with the exception of buy to let mprtgage brokers must be authorised by the FCA.
You should ask your broker if they are authorised by the FCA and then check the FCA register to see if they are truely authorised.
Make sure you do this in writing and keep a record.
If a mortgage broker is not authorised you may not be able to claim any compensation from the financial services compensation scheme if you have been given incorrect advise on your mortgage.
does the mortgage broker think you will be able to get a mortgage?
This is an important question to ask your mortgage advisor. If they don’t think you will be eligible for a mortgage then there is no point wasting your time especially if they aregoing to charge you amortgage advice fee for the pleasure.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.