Mortgage Advisor – 9 Reasons To Get Independent Advice

Mortgage Advisor - Indepndent Advice

Do you look at mortgage advisors and think “Why do I need one? Can’t I arrange a mortgage myself?

GIGLY’s smart mortgage tech is underpinned by independent financial advisors with years of experience in securing mortgages for people across the UK. Unlike a computer they understand that life can get in the way. From going it alone as a contractor or freelancer, to shifting priorities when relationships change – they are dedicated to finding the best mortgage for your requirements.

First things first, lets discuss the different types of mortgage advsior.

All mortgage advisors help you find a mortgage. Regulated by the Financial Conduct Authority (FCA), they are qualified to advise you on mortgage products. But, not all advisors (also known as mortgage brokers) are created equally.

There’s three main types of mortgage advisor;

  • Those that advise from the whole of the market
  • Those that advise from a limited number of mortgage lenders i.e. a panel
  • Those that only advise on the mortgages of a single lender

GIGLY only work with independent financial advisors who look at the whole mortgage market. Here’s 9 reasons why.

1. A wide range of mortgage products and rates

If you want options from the widest range of products available, then you need a whole of market advisor. The clue’s in the name – they are independent and therefore have access to the whole mortgage market. That means almost 100 lenders and thousands of products to pick from.

Tip: Check whether your mortgage broker is ‘whole of market’ or tied to a particular mortgage lender or a limited group of lenders, often called a panel.

2. Access to exclusive deals

A whole of market independent advisor can access exclusive deals; deals that are not available to any other broker or directly to customers. They’re the VIPs of the mortgage world.

3. They understand your affordability

Your advisor will check your monthly income and outgoings so they can find a mortgage that you can afford. They will also take into account how a change in interest rates might affect your mortgage payments.

Tip: Use ‘mortgage affordability’ calculators with caution, they are just a guide. An investigation of affordability calculators in 2016 showed a £200,000 difference between different high street lenders ‘calculator’ mortgage amounts when presented with the same data.

4. Greater protection

Using a financial advisor who is authorised by the financial conduct authority (FCA) means you are taking advice from a professional with training and certifications in financial advice.

Your advisor has a duty of care to you. They must be able to justify why a mortgage is suitable for your circumstances.

This means that if the mortgage turns out to be unsuitable later on for whatever reason, you have a greater claim to make a complaint.

On the other hand, if you don’t take advice, you must take full responsibility for your mortgage decision.

Scenarios you may encounter if you decide to go it alone include:

  • Having your application rejected by your chosen lender, because you didn’t fully understand the eligibility criteria or restrictions
  • The wrong mortgage for your circumstances which may cost you in the long run

An example of this is a client who came to us because their circumstances demanded a portable mortgage product. They spent a whole week scouring the market for a great mortgage rate, went through the application process and at the point of signing realised that the product was wrong for them – it wasn’t portable!

5. They understand lender eligibility criteria

Lenders provide a variety of different products designed for different circumstances. Each lender has a different set of eligibility and affordability criteria. Whole of market advisors understand the circumstances under which mortgages are approved. They will recommend a mortgage that is suitable for you and will tell you which ones you’re likely to get. With an advisor to guide you, there’s less chance you will be rejected by your chosen lender.

6. Unbiased comparison of rates and fees

With so many products and rates, comparing deals and choosing which is best for your bottom line isn’t easy. A whole of market advisor gives unbiased advice on which product would suit you. A good advisor will also take your wider financial plans into account.

For example, one of GIGLY’s clients wished to buy two properties until they realised they would have to pay stamp duty on both making it cost prohibitive. Another client saved money by delaying their property purchase by one month so that their partner’s income could be taken into account.

7. Less paperwork

As well as carrying out a check on your finances, your advisor will help you manage the paperwork required for your mortgage application.

This is extremely helpful If you have a complex income or are working independently and need a contractor mortgage. These products require additional paperwork to demonstrate your affordability. An independent financial advisor with experience of gig and contractor mortgages will guide you through the paperwork process and answer any questions you have. This doesn’t just save you effort, but time as well as it means they can process your application faster.

8. A faster mortgage process

Specialist advisors deal with lenders every day, so they know what each lenders’ application process involves and can tell you which lender will process your application with the least delay.

9. They understand circumstances can change

Independent financial advisors are experts on changing circumstances. For example, if you have left full time employment to become a freelancer or contractor, you may no longer fit your previous lender’s mortgage criteria. An independent advisor will take into account your change in work status and find a mortgage to suit

How much does an independent advisor cost?

Some mortgage brokers charge a fee for their service. It can vary from broker to broker or may depend on the value of your mortgage or the type of product.

Some advisors are free. Instead of charging a fee to the customer, they make their money from a commission they receive from the lender instead.

Tip: It’s important that the advisor you choose tells you up-front how much you will be charged for their services and if they receive a commission from the lender.

GIGLY works with whole of market advisors

At GIGLY, we only work with whole of market mortgage advisors authorised by the FCA to ensure that you get the best possible product. Our advisors are seasoned independent finance advisors which means they have a wealth of experience not just in mortgages but all finance products including, pensions, protection, life cover, relevant life cover, insurance and investments.

GIGLY is a free to use platform. We don’t charge you a broker fee for mortgages

We get paid by the lender in the form of a small introducer fee that is shared between our independent IFA and GIGLY. The data you provide influences the lenders and mortgage products you show for. GIGLY and our advisors do all this work at absolutely no cost to you.

Call our expert independent financial advisers now!

Call 020 3582 6091 or 0141 465 7632.
Open 7 days a week until 8pm weekdays.