Wondering whether you should use a mortgage advisor or not? Are there any benefits and what are the costs?

Read on to find out.

Difference Between a Mortgage Advisor and a Broker

First, let’s cover one of the most confusing aspects of choosing a mortgage advisor, the difference between a broker and an advisor.

The answer is quite simple – there isn’t really any difference! The terms are used interchangeably, some professionals may use one or the other or just one, but they are the same thing.

Typically, if a mortgage professional works for a bank or mortgage provider, they would be an advisor but someone that has access to the whole market is a broker.

Brokers also use ‘advisor’ because a large part of the service is providing advice. Yes, they can help you find great deals, but a broker will also be there to answer any questions you have about the mortgage process, buying a house, or anything to do with finances.

Is It Worth Using a Mortgage Advisor?

A mortgage adviser is qualified to help find the most appropriate mortgage for your circumstances, can increase your chances of obtaining a mortgage, and possibly save you money.

For some people, using a mortgage advisor can be a sort of safety blanket and help them feel more confident in obtaining a mortgage. for example, people that may not be particularly confident dealing with the financial industry or worried about making a mistake.

Circumstances also make people want to use a mortgage advisor – first-time buyers, self-employed people, or those looking to obtain a buy to let mortgage.

All customers will have their unique circumstances but often, the circumstances are ones that a mortgage advisor will have come across before or helped another customer with. It is worth using a mortgage advisor so you can access their professional expertise and experience.

Benefits of using a Mortgage Advisor

Many people ask, ‘do I need to use a mortgage advisor?’ and the answer is no – there is no requirement for you to use an advisor. If you are comfortable and confident you can find the right product for yourself then that is ok. However, there are benefits you could be missing out on.

A mortgage advisor can:

• Advise on how much money you can afford to borrow
• Explain the different types of mortgages and which is the most suitable for you
• Potentially save you money when it comes to interest rates or fees
• Find deals across the whole market and access special deals that aren’t available on the open market
• Help you prepare for your application in a way that will give you the best chance of a positive outcome
• Save you time as you won’t need to search for deals or spend time googling answers to questions you may have!

Potentially saving money and gaining access to expert advice are the biggest motivators for people using a mortgage advisor.

What Does It Cost To Use A Mortgage Advisor?

Some mortgage advisors charge a fee, and some don’t. Free mortgage advisors are not necessarily better or worse, they’re simply different.

Fees will vary between advisors, but they will usually either have a fixed price where you pay one sum for the complete service, or a percentage fee where the advisor will charge a percentage of the properties value.

Here at Burnett Mortgages, we use a fixed fee – you only pay one price for our service, including any follow up and remortgages.

Read more about mortgage advisor fees.

When Should I See A Mortgage Advisor?

It’s best to speak to a mortgage advisor as soon you know you want to get a mortgage! You can engage with an advisor at any time but perhaps the best time is before you start to look at properties.

After speaking to a mortgage advisor you will have a clear estimate of the amount of money you can borrow – this is handy to know before property hunting as you can then avoid looking at any houses that may be being your budget.

There are other times you may wish to use a mortgage advisor too – for example, if you’re already a homeowner and need to remortgage. In this case, you would get in touch before your current terms are up.

Where Can I Find A Mortgage Advisor?

Finding a mortgage advisor is easy but do a little bit of research beforehand to find someone who is right for you.

First, ask friends and family if they have any recommendations. If they have had a good experience with a particular mortgage advisor, then you might too.

There are also websites you can use to search for advisors in your area who offer services that are relevant to your circumstances. Unbiased is a popular website for finding an advisor.