Mortgage Advice – Why Would I Need It?

Why would anybody need mortgage advice?

Once upon a time, getting a mortgage was a simple affair. You saved up your deposit and made an appointment with your Building Society Manager. Then you meekly and gratefully accepted what he (it was usually he) deigned to offer you.

Nowadays, things are very different. There are hundreds of lenders, offering literally thousands of different products of all shapes and sizes – and they are all competing for your business. Which is nice. But the effect is that trying to research the market on your own is a daunting and very confusing prospect. So it really does make sense to look for mortgage advice.

• As well as there being thousands of mortgages available, every individual wanting a mortgage is a unique case. To find the right mortgage for you, all sorts of factors have to be considered: your income; the type of property you require; the size of deposit you have available; your credit rating; your mortgage preferences, e.g. fixed or variable rate; the length of mortgage term you require – the list goes on. You need mortgage advice to help you match the most suitable mortgage product to your specific position and preferences.
• You may also need mortgage advice to help you understand many concepts that may be new to you. For instance,
o What do “fixed rate” and “variable rate” mean? Which would be more advantageous for me?
o What is a tracker mortgage?
o Why might I want an interest-only mortgage?
o Why do some lenders charge an early payment penalty?
o How do I work out what fees are charged by different lenders?
• Mortgage advice can also extend to helping you fill in your application form The broker or adviser knows how the questions can be answered in the best way to get accepted.
• It may turn out that you require a special type of mortgage. For instance if your credit rating is not that good, you may need a bad credit mortgage. In this case, you really need mortgage advice to help you know who to apply to. If you apply to people who will certainly reject you, it will damage your credit rating further.

At the end of the day, although the mortgage adviser can assess your needs and recommend a specific product to you, it is entirely your decision as to which you choose. But without getting good mortgage advice, you will find it very hard to make an informed decision.

Sean Horton is a Director of Enhanced Wealth Limited who provide specialist mortgage advice