Few things to know getting mortgage advice

To get the best information, ask a lot of questions!

07:58 02 January 2014

There are many professionals available to help you get mortgage advice, including brokers, lenders, Independent Financial Advisers (IFAs) and mortgage advisers.

Brokers, lenders and IFAs are independent but some mortgage advisers might be trying to sell or recommend their employer's mortgages. Make sure you shop around and do your own research. Ask questions and make comparisons. Collect as much information as you can, comparing the total costs over the terms of the loan to work out the least expensive ones.

Here are some additional things you should ask an adviser:

• What are the rates and associated costs such as reservation fees, product fees and broker fees (if applicable)?

 

• Are associated costs due up front or can they be included in the mortgage loan? If added to the loan, how are monthly payments affected?

 

• What is the charge for surveys/valuations?

 

• Are there pre-payment penalties? Are capital only payments or additional monthly payments allowed to repay the mortgage early?

 

• Are arrangement fees refundable if the application does not proceed?

 

• Is buying insurance from the lender a condition of getting the mortgage?

 

• (To ask a broker) Do you provide advice on products from the whole market or just a selection of lenders?

Whomever you speak to needs to be regulated by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA) so that you know that they meet certain standards and give information you can trust.

Different lenders have different products and the type of mortgage you choose will depend on your personal circumstances. IFAs can help you look at many different options but it is also worth going directly to lenders to see what they can offer. Another way to get information about what is available is to use online comparison tools. They have become very popular and are fairly easy to use. By inputting a few details, you can be provided with a list of possible mortgage deals to consider. They can be compared by features such as type, maximum loan-to-value, overall cost, standard rates and interest rates.

Whatever method you choose, it is important to ask questions, collect and analyse information and make the best choice possible to insure that you will be able to repay your mortgage.