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​Do I need a mortgage adviser?

Finance|22 April 2018
​Do I need a mortgage adviser?
When searching for a mortgage, there are both pros and cons to using a mortgage adviser.

The mortgage market can be a bit overwhelming, especially if you’ve never taken out a mortgage before, so having someone who knows it inside out to advise can be helpful. Though they are a non-essential part of the buying process, mortgage advisers are in a unique position to help buyers to get the most from the mortgage market.

The benefits of using a mortgage advisor

Whether you’re a first-time buyer or in an unusual situation, a mortgage adviser can help you to scope out the mortgage market and find the best lender and deal for your circumstances.

They work with mortgages and lenders every day, so they know the market well and can see past what might be an enticing deal on the surface but will cost you more in the long term. They’re able to help you find the best value mortgage deal for your circumstances and they’ll also know which lenders are most likely to lend to you.
If your circumstances are unusual, for example if you’re self-employed, the adviser will be able to tell you which lenders are best for this.

Mortgage advisers not only understand the market and are up knowledgeable on the latest deals, they can also have access to exclusive rates and offers. Because using mortgage advisers is becoming an increasingly popular choice, the lenders have started to work with advisers to negotiate exclusive deals that are only available when using the advisers’ services.

Having an expert there for you throughout the buying process can help to significantly reduce the stress associated with arranging a mortgage.

What to be wary of when using a mortgage advisor

It’s best to find out up front if the mortgage adviser you’re using is tied to specific lenders, as this means they won’t be surveying the full market when looking for a mortgage for you. Although mortgage advisers do often work with lenders to offer exclusive deals, this shouldn’t mean that they don’t consider the full range of mortgages available and when advising on which are best for you.

You may also want to consider that some lenders, including HSBC and FirstDirect, only offer direct mortgages; meaning they won’t deal with advisers, you have to direct to them.

Some mortgage advisers will charge a fee; some charge a set amount while others take a percentage of the mortgage that they arrange. If your adviser does charge a fee, you want to make sure that they’re saving you the equivalent of this money or more before signing a contract to use them to arrange your mortgage.

If you’re buying a new build home through home builders like Strata, your mortgage adviser fees are covered by the builder. Find out more here.

What should you do?

There’s no doubt that using a mortgage adviser has many benefits, and providing you find the right one who will survey they whole market for you and offer honest advice that isn’t influenced by their alliances, then their service is worthwhile using.

It’s advisable that you do some research beforehand so that you’re already aware of the market and understand the types of mortgage available. This means that you can make your own educated decision on the mortgages available and be advised rather than led by the mortgage adviser’s recommendations.
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