Finding good mortgage advice
If you are planning to obtain a mortgage, you may want to consider finding a good mortgage broker first. There are many advantages of having a broker agency to give you advice and handle your various home loan needs. However, like in any other transaction, it is very important that you take steps in finding a trustworthy and reliable brokerage that doesn’t charge outrageously high fees. But, how are you going to be sure that you have found the right one? Here are some tips in determining whether you have found the best broker for finding the most suitable mortgage deals for you (e.g. buy to let, bad credit etc.)
What to look for in a mortgage advisor
The primary aspect that you need to know about the mortgage broker that you are seeking out is the fact that he or she is qualified, insured, and regulated. In the UK, the agency that provides the qualification requirements for a broker is the Financial Services Authority, also known as FSA. The FSA has a list of certifications that it recognises. Two of these FSA recognised certifications are the CeMAP and Cert MA. CeMAP stands for the “School of Finance Certificate in Mortgage Advice and Practice” while Cert MA means “Chartered Insurance Institute Certificate in Mortgage Advice”. Regulation of mortgage brokers in the UK is also under the responsibilities of the FSA. You can easily check the credentials of a specific person that you intend to deal with through the FSA website. The website contains information on whether a certain individual is regulated or is working for a company that is regulated under UK law. Further, involving the FSA in finding a mortgage broker can give you access to security in case of complaints or compensation problems. Also, it adds security on your part if the broker agency has indemnity insurance.
Another aspect that may affect your decision on which person to hire is the range of mortgage deals that the broker has access to. For this purpose, the one that you would want to deal with is a “whole of market” broker. This type of mortgage advisor is not limited to a selected group of lenders, but has access to a wide range of lending institutions. Thus, a “whole of market” broker can deliver to you in most cases the best mortgage quotes possible. Be sure to always check any deal with an online mortgage calculator.
Moreover, it is essential that you know whether the broker you are talking business to includes the direct loan deals offered by lenders. Not only will this be a measurement of how good that person is, but also how concerned that individual is to your well-being, since brokers may lose from including direct deals in their evaluation.
Likewise, you must be clear on the availability and contact information of the mortgage broker. A reliable advisor is someone who is available whenever you have queries or concerns. You also need to know, beforehand, the fees that the person charges and the terms of payment. Some are paid a fee while others are paid in commission. For those people who charge the lenders commissions, it is vital that you check with the FSA to ensure that the opinion the mortgage broker will provide you is not biased.
You must keep in mind the main purpose for which you intended to hire a mortgage broker — that is to find the best mortgage terms and save money on your loan. Hence, you should not hesitate to look around before you settle for a company that you can trust.