Mortgage is nothing but a legal agreement in which a bank, building society, government institution, etc. lends money at different rates of interest in exchange for taking title of the debtor’s property. It is done with the condition that the conveyance of title becomes void upon the payment of the debt.
So, getting a mortgage is one of the biggest financial decision to make and to make this right a person to guide is very important. The persons are called as Mortgage Advisers s. Sometimes based on their roles they are also called as Mortgage Advisers. Any mortgage broker may act as an intermediary, who brokers mortgage loans on behalf of individuals or businesses and receive commission for the same.
The first question would by “Why Mortgage Adviser is required?”. To answer this, Mortgage Adviser is a specialist who has in depth knowledge of market and it is always a good an idea to have an opinion of the experts.
Following are the main types of mortgage advisers:
- Advisers who look at deals from a limited list of lenders.
- Adviser who are tied to a specific lender.
- Advisers who check the whole market for a range of products.
Any mortgage advisersonly offer advice and recommend the most suitable mortgage.
Advantages of having Mortgage Adviser:
- Brokers are expert in the market and they have better understanding and are in better position than any customer to select the best deal out of many available.
- Mortgage Adviser keep lenders honest on lender fees specified in dollars also called as “junk fees.”
- Normally lenders quote wholesale/reasonable prices to Mortgage Adviser. This is because the work that Mortgage Adviser do for them that lenders would have to do.
- Mortgage Adviser will help to consider about all the costs and features of the mortgage beyond the interest rate.
- Mortgage Adviser might have exclusive and attractive deals with lenders which are not available to all.
- Mortgage Adviser can check finances to make sure that one can afford a mortgage.
- Mortgage Adviser also recommend a mortgage that is suitable.
- Mortgage Adviser completes all the paperwork, so that application should be dealt with faster.
Mortgage Adviser will charge based on the service provided. They can get commission from both the lender and the borrower. There are many risks involve, so it is always advisable to seek advice from Mortgage Adviser/Broker.
There are many factors which should be considered before mortgaging a property.
- APRC: Annual Percentage Rate of Change, it is mortgage fees that isexpresses as a percentage of account as well as the interest rate.
- Deposit size:Amount of Deposit one have as higher the deposit will lower the interest rate on mortgage property.
- Length of fixed or variable rate deal:If the mortgage is for a longer period or have more flexibility thenthere will be charges to switch out of a deal before it ends.
- Flexibility: If one can pay the overvalue of mortgage without being charged for the sameandif one can take a break from making payments. This can help to pay it early or lately based on the convenience.
There are many websites in UK which will help to find Mortgage Advisers. Following are few to name.
Also, there are websites on which a comparison can be done to find the best deal, following are few of them to check:
- Money facts
- Money Saving Expert
- Money Supermarket