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Top Reasons to use an Advisor for Your Mortgage

The answer is contingent on the situation and time you have to get it done. In this article, we’ll provide some suggestions to help determine the best route to take.

However, one thing is certain. If you’re a homeowner with a mortgage on your house at present, you should looking into refinancing.

The most compelling reasons are:

You have equity in your home
There’s no obligation to sign the terms of a fixed contract
It’s getting close to the end of your contract
Your lender has a Standard Variable Rate (SVR)

(SVR is the default rate that the majority of fixes and trackers return to the rate at which the introductory offer is over.)

Why do you need a Mortgage Advisor?

First, as the odds of an increase in the interest rate are likely to occur by the year. Then it is expected that the Bank of England is predicted to start removing some of the assistance it has provided to the economy in the aftermath of the last year’s Brexit decision.

Second, since the interest rate is, for moment, at an historic low of 0.25 percent.

The third reason is that the rates for remortgaging available are much better than they’ve been for over 10 years.

Remortgaging Deals Best Ever

In the majority of cases, the mortgage is our largest expense. Thus, cutting down on its costs will likely be the most significant money-saving opportunity.

The advantages of refinancing, for the majority of consumers, this moment are huge. There is a fierce competition among lenders. Some are offering remortgaging options with low rates to encourage customers to switch.

Do you have a mortgage advisor or DIY?

So , how do you proceed? If you opt for your own mortgage with no advice it’s known as an ‘execution-only’ application.

Comparison of remortgages on the internet is a good place to begin to understand the general gist about the marketplace. However, the details can be difficult to comprehend.

There has been a significant increase in the number of remortgages for brokered over the last three years since the launch by the Financial Conduct Authorities’ Mortgage Market Review in April 2014.

This means that lenders have to inquire more in-depth questions from the borrowers. All of your expenses, from child care costs to your travel expenses as well as your pension payments have to be considered when assessing the affordability of your loan.

In the majority of cases we believe it’s worth making use of the services of a mortgage consultant to ensure you get the most competitive rate.

However, be aware that there are three types of mortgage advisors for remortgage:

Some deal only with a particular leader
Some may offer deals from a restricted list of lenders.
Others will be separate and cover the entire market

In terms of the variety of loans offered to you, a lender who is fully market-based has access to many more choices for you.

It’s not free to use. Remortgage brokers might cost clients fees for the services they provide. It will be an upfront cost or a percentage of the mortgage. Other lenders won’t charge. However, they’ll receive an amount by the lending institution (and this amount is built inside the package).

Therefore, ask the questions. Remortgage advisers must inform you upfront how much their services cost or if they’re compensated commission.

Therefore, you’ll likely be required to pay a cost directly or have it added to the remortgage. However, overall you’ll save thousands.

The Top 5 Reasons to Use an advisor for your mortgage

1. They are protected as they have a duty of care’ towards you.

A professional’s advice instead of conducting research on your own this means that, when the mortgage is found to be not suitable for you in the future, you’ll be granted greater rights when you file an appeal. If the advice they provide isn’t appropriate for the purpose, you’ll are paid.

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2. The right product will be found for your needs.

A remortgage adviser, often called an independent broker is a specialist with deep understanding of the market. In the absence of one, you’re stuck with a incorrect mortgage for your needs. It could be a costly error that you’ll have to pay for.

3. You’ll reduce time spent on research and unnecessary applications.

Remortgage experts will review the various mortgage options which are suitable for you. You’ll be able to avoid being turned down by the lender you choose due to a lack of understanding of what the conditions and terms are. They usually handle everything for you, too which means your application can go through quicker.

4. You’ll be able to purchase a product which you can actually purchase.

Remortgage experts are required to perform the required tests and scrutinize your financial records to ensure that you have the funds to pay for the mortgage. They’ll only recommend mortgage products that are appropriate for your needs. They’ll also provide all charges and features to ensure you know exactly what you’ll have to pay. It’s easy for you to get caught by the complexities of the extra fees and charges.