Should you use a mortgage adviser?
Computer says no! Is this as far as a solution can go, advising is more than just providing a product, it is the journey we take you on while getting you to your goal. We look at the bigger picture, we want to find out your needs and help provide ideas and solutions to take you and your family to the next stage. We know you may not be able to exactly accomplish your goals as of today however, so we will look to help plan and ensure that you understand how to reach your goal and execute it.
Often people describe a mortgage broker as just the middleman between you and a loan. This may seem the case, however we are trained professionals, we do not work for a specific bank, we are independent. We work for you! This allows us to get you the best deal from the whole market. Mortgages are becoming even more complex with the different types and costs involved. Finding a mortgage that is right for you is not just about finding the lowest fixed rate, there may be hidden fees involved which may cost you more in the long term. We are here to do the hard work for you, and wade through all the jargon.
Mr Brown found a deal for a mortgage online for 1.20%. Sounds too good to be true, right! What Mr Brown failed to see is that there were additional charges including a £1,500 product fee, £500 valuation fee and conveyancing charges (£750) would be applicable. When Mr Brown came to us, we were able to find him a product for a slightly higher cost of 1.23%, however there was no product charge and it offered a free valuation, plus the lender offered a free legal package. In the end, Mr Brown ended up saving £1,060 over the next 5 years because we took into consideration all the set-up costs involved.
Buying a home can be one of the most stressful times of your life. We know how important it is to have someone you can trust on your side. It is not just about finding you the best rate, we are here for you, from taking you through your affordability, filling out application forms, dealing with your estate agents, helping you find the best solicitor and talking to underwriters. We are here to guide and support you through the whole process, all the way, until you complete on your dream home. We will even contact you 6 months in advance of your fixed rate ending to ensure we have discussed the options with you, that is one less thing to worry about!
There are no restrictions in what we can consider because we are proud to give holistic advice no matter how simple or complex a case can be. For example, I have taken an individual who had 1 buy to let and 1 main residence, to now having 6 investment properties owned through a limited company. The client’s ambition had been to grow a portfolio of properties; however, he did not know the best way to do it. We created a plan which took into consideration all the future as well as the present. We helped this portfolio flourish into a profitable tax efficient, self-financing investment by discussing the options of arranging mortgages into a limited company. We were able to use our expertise and explore options to help develop this portfolio, and to pre-empt any issues along the way. Such as possible Inheritance tax issues which adds to the holistic advice we can provide with the help of our fellow financial advisors.
The limitation of online brokerages is that they will not look at the bigger picture, although I can! Taking on the idea of purchasing a BTL property as an example can be complicated nonetheless, though not for us. There are investment opportunities we can help create as we do this every day for our clients – hand holding through each stage of growing portfolios and knowing there is not any limitations because we can consider a lot of solutions, which unfortunately online brokerages cannot do, due to the “computer says no” scenario. What you put in is what you get out but then again, what if you do not know where to start! Stop and talk to me because I care. Know who you are talking to, it is just as important to be confident in knowing you can keep coming back to the same person with your interests at heart.
This article was written by our mortgage adviser Jayan Patel.