About Mortgage Brokers
There are a few different types of mortgage brokers who are able to offer advice on all things related to mortgages, how they work, what is available and application processes etc. These are:
• Tied Brokers
• Multi-Tied Brokers
• Independent Mortgage Brokers
Tied Brokers
These are those mortgage advisors that work specifically for one mortgage lender. Therefore they are more than likely to only inform you of mortgage deals that they currently have on offer.
Multi-tied Mortgage Brokers
These are advisors that can give you advice on products from a wide range of different mortgage lenders. However, they still have limits as to how much different information they will give you as they tend to offer guidance on products that will also benefit them.
Independent Mortgage Brokers
This type of advisor is more than likely to have more experience in the mortgage field that a tied or multi tied broker. As they are not tied to any specific lender / lenders, you are more likely to find the best, most relevant product for you.
Any advisor that provides a service where they sell mortgages must be ‘CEMAP’ qualified. This is the requirement by the Financial Services Authority (FSA).
Finding a Mortgage Broker
You can find a mortgage broker by searching online or visiting your local estate agents who may be able to provide you with a recommendation. As well as this, be sure to speak with close family and friends who will more than likely know of someone. It is always advisable that you speak with a few different brokers so that you can compare each product presented to you. It may also be the case that one advisor is more helpful in explaining certain things to you. At the end of the day, understanding your options is the most important thing.
Mortgage Broker Charges
In most cases, a mortgage broker will offer a free consultation to discuss with you the options available. From then on, it may be that an hourly fee is charged for their work or a commission may be agreed. If a commission fee is setup, the mortgage broker, by law has to reveal what this is. Be sure to understand costs and at what stage you will have to make payment. It is the law for a mortgage broker to explain their costs during the first, initial meeting.
You will find all of this information in the disclosure agreement, which you will be given. Information about refunds etc should also be included.
Be sure to ask your mortgage broker for a copy of the ‘Key facts’ document.
