Buying a house is an incredibly exciting process. No doubt your thoughts will be filled with wallpaper swatches, whether you can extend out the back of the spare bedroom could be turned into a nursery, and whatever else is swirling around your mind. However, there are plenty of less glamorous sides to buying a house and one, in particular, will likely be with you well after that nursery has been turned back into a spare bedroom – the mortgage.
Choosing a mortgage is a minefield and unless you’ve undertaken some kind of mortgage advisor training or are prepared to put in a lot of research, it can be very difficult to know what kind of mortgage is best suited to your circumstances. There are various different types of mortgages, all with the advantages and disadvantages depending on your situation, and the best way to help you decipher which is most appropriate is to enlist the help of a mortgage advisor.
Your mortgage broker will help you get the best mortgage possible for your circumstances and will negotiate with lenders on your behalf. Some brokers will also have mortgage deals not offered by the lenders, which can help you save a bit of extra money, but you should always ask if there are any special conditions. If it sounds too good to be true then it might well be. You don’t want to get stung further down the line when it’s too late to do anything about it.
Research is important. As with most things when it comes to buying a house, mortgage brokers don’t come cheap and so it’s important you choose the right one.
There are generally two types of mortgage advisor, tied and independent advisors. Tied advisors will recommend lenders from those they are tied to and will usually take their fee on a commission basis if you choose one of their recommendations. Independent advisors are not tied to any lenders and are free to recommend who they like, which they will usually do for a one-off fee.
A personal recommendation from someone you know is a great way of choosing a mortgage advisor. However, if that’s not possible, there are plenty of websites, such as Find.co.uk, that can provide you with lists of advisors in your area. An estate agent may also recommend a broker, but they may well be working on some kind of commission so be wary of these recommendations. Always contact several different brokers and compare quotes before making a decision.
If you want peace of mind that your broker is fully authorised and qualified, you can check with the regulatory body, the Financial Services Authority (FSA).
You should also keep a record of absolutely everything, no matter how trivial it may seem. All offers should be submitted to you in writing, which you should then print off and keep in a folder. When meeting the advisor, jot down detailed notes, date them and, again, keep them filed. Should anything need to be disputed, you then have evidence. It may also be worth your time checking beforehand whether they belong to an independent complaints scheme just in case the worse happens.
Research is the key. Put the work in early and you’ll reap the benefits later on. However, you should also be happy and comfortable with the person who is dealing with your mortgage. Even if they have the best reviews, if you don’t feel comfortable with them, then don’t feel under pressure to do so. A gut feeling is just as important as any review.
About the author: Chuck Tomlinson is a freelance writer who has specialist knowledge of the housing and mortgage industry. This piece was written using various sources, including www.simplyacademy.com.
