It is a big financial decision to get a mortgage so it is important to get it right. The mortgage market is competitive and it is hard to understand what exactly is on offer.
There are many providers, auto products, and rates available. It is better to talk to your bank also about the number of independent mortgage advisers before you make up your mind. Click over here to know more. Lenders, mainly banks and mortgage broker, Ipswich offer advice, when they suggest a mortgage for you.
They assess the mortgage repayment you can afford by looking at your income and your debt repayments and day to day expenses. This shows that you should end up with a mortgage that suits your needs. Lenders and brokers offer advice in almost all cases, you should be able to choose or reject the advice, and based on your research find your own mortgage deal. When you choose your own mortgage without advice it is called” execution-only” application.
Risks Of Not Getting Advice
Instead of doing your own research, getting advice means that if the mortgage is unsuitable for you, later on, you have more rights, when you make a complaint. Not taking any advice means you have taken full responsibility for your decision. If you don’t take any advice, you can end up-
- With The Wrong Mortgage For Your Situation – It could be a costly mistake in the long run.
- Being Rejected By Your Chosen Lender- Because you didn’t understand the restrictions clearly or the circumstances for which the mortgage was designed for.
Talk To Your Bank Or Building Society
This starting point is good, as your bank knows you and your financial situation. They will tell you about their own mortgages, so you can see how their product stack up against the competition before you make a final choice. Their advice is free for you.
When To See A Mortgage Advisor
A mortgage advisor known as an independent mortgage broker is a specialist with knowledge of the market. They look at a range of mortgage projects which suit your needs. You can talk to a few of them to see what is on the offer. There are three main types of Advisors –
- Some are in collaboration with a specific lender.
- Some look at deals from Limited lenders
- Some search the whole market for a wide range of products.
All mortgage advisers should offer you advice when recommending the most suitable mortgage, this means you are protected and you can complain to the financial ombudsman if something goes wrong.
- They check your finances to be sure that you can afford a mortgage.
- They may have exclusive deals with lenders which may not be available otherwise.
- They complete the paperwork for you so that your application is dealt with faster.
- They help you take all the costs and features of the mortgage into account, beyond the rate of interest.
- They should only suggest a mortgage that is suitable for you and tell you which ones you may get
Mortgage brokers may charge you for their service depending on the product you select or the value of the mortgage. Others will be free for you but they will receive a commission from the lender. They should tell you how much you will pay for their services. And should also tell you if an advisor is paid a commission. Once the broker makes a product recommendation, they must give a mortgage illustration document to you. This is called a key facts illustration.
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