Finding the right mortgage provider can be a bit of a minefield – luckily, that’s where the experts come in. Firms like Right Mortgage UK, a full service whole of market mortgage advisor, exist to help people like you and me find the right mortgage to make that dream house purchase a possibility.
Some Mortgage Provider work exclusively for one group of firms or financial institutions, meaning they can only advise on those company’s products. Others are independent mortgage brokers, and as such can advise across the whole of the UK market. That means you’ll never miss a deal or an offer, no matter who the lender is.
Independent advisors can advise you on what’s available from all the major high street banks and financial institutions, as well as from those obscure, unique, niche mortgage lenders that you’ll never have heard of prior to making a mortgage application. That’s the beauty of using an independent Mortgage Provider – they can access literally every single lender out there, so you are definitely going to get the broadest spectrum of offers available to you.
Good mortgage advisers exist these days in an online capacity, so you’re not faced with having to plan long and tiring journeys over to their offices or arrange a day off work – rather, you can communicate and liaise directly with your mortgage advisor online and by email, making it a really convenient process to arrange a mortgage. Most of the really good companies operate an out of hours response service online too, meaning you don’t have to wait ‘til 9am tomorrow for a response to your query.
Some of our favourite FAQs about finding a good mortgage advisor include:
Are mortgage brokers better than high street banks or building societies?
Using a mortgage broker will give you access to more choices and offers, as they can apply to the whole of the market for you, not just one financial institution. Most brokers are paid commissions by the mortgage company, some lenders pay more than others. You may pay arrangement fees for using a mortgage broker, which is usually added onto your mortgage amount. Make sure you always and check and understand exactly how much the fees are – and how much it costs you to add it to your mortgage as opposed to paying it off upfront. It may surprise you at how much interest you’ll pay, and you may decide that you’re better off finding the lump sum to pay the Mortgage Advisor their fee.
How much do mortgage brokers charge?
There’s no typical fee here, as each mortgage adviser / company will charge different fees for different services. Very broadly, a mortgage broker’s fees can be charged a number of different ways and be determined by the size of the mortgage. On average, however, mortgage brokers are generally paid around £500-£600 for their fixed fee, with other costs – such as a percentage of the loan – added after completion.
How do mortgage advisors get paid?
Unlike loan officers, mortgage brokers don’t work for banks.
They operate independently and must be licensed. They charge a fee for their service, which is either paid by you, the borrower or the lender. The fee is a small percentage of the loan amount, generally between 1% and 2%. Your mortgage adviser must, by law, make it clear to you very early on in the application process exactly what their fees and charges are, what they cost you, what options you have for paying those fees, and what exactly all the implications/choices are.
How long does a mortgage application take to be approved?
Decision in Principle: 1-3 weeks for a typical applicant.
You’ll need to provide documents for final review by the mortgage lender, but your broker will cast their eye over the application, just to be sure. This process will usually take one to three weeks, and after that, you’ll receive your ‘Decision in Principle’ letter.
So actually in terms of finding the right mortgage, your only really important decision is to find yourself the right mortgage adviser, and to let them guide you through the rest of the process.
Remember, you’re looking for someone flexible – in terms of opening / communication hours, someone who covers the whole of the market – so that you don’t miss out on a great mortgage offer, and someone who understands the process from top to bottom and can give you the best advice for you.
Once you have those things, you’re ready to begin your mortgage hunting for real!