Most of us need to borrow money in the form of a mortgage in order to buy our next home. Going about getting a mortgage offer has, since the 2014 Mortgage Market Review, got a whole lot more complex, with all sorts of requirements now set by the government.
Of course, the stated objective of these extra requirements, such as establishing ‘affordability’ when considering a borrower’s application, are to protect the borrower from unforeseen problems further down the road. For example, should interest rates increase, will the mortgage still be affordable?
One of the downsides to the consequences of the review is that the whole mortgage application process has become even more complicated. Huge amounts of information are now requested by mortgage lenders and you will find yourself having to put together (and provide evidence for) your detailed monthly budget, including everything from gym membership and child care to groceries and train fares to work.
What then, are the advantages and disadvantages of using an FCA qualified and accredited mortgage advisor over, say, doing it yourself?
The advantage to not using a Mortgage Advisor is that you won’t be required to pay them a fee for their work. This fee varies and must be set out when you instruct them, but it’s usually made up of a fee from the mortgage company, paid directly to your advisor, and a fee charged to you by the advisor. The fee for most people’s mortgage is likely to be several hundred pounds although only a small element of the fee needs to come out of your own pocket.
Moving home is an expensive activity, especially with valuation fees, moving costs, lawyers (and possibly estate agents’ fees) and associated costs such as Stamp Duty Land Tax (SDLT). They all add up and it can be tempting to save money. That’s understandable, but choosing where to save is likely to be a very important decision.
Employing the services of a qualified Mortgage Adviser has several significant advantages and they are;
All-in-all, the potential savings in time and money make using a qualified Mortgage Advisor the prudent choice. What’s more, an initial chat with Mortgage Required obligates you to nothing and might just make the difference between securing the purchase of that dream home - or not.
For more information contact us or speak to a mortgage advisor on 01628 507477.
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