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Find a mortgage broker
By Hannah Ricci
Ideally, you want an adviser who is completely independent and not tied to any particular lenders. However, many advisers who describe themselves as independent actually work from a panel of different providers, so if you want access to every UK lender, make sure you choose one who is 'whole-of-market'.
Panel of lenders
Whole-of-market advisers are
often to be preferred, but brokers who use a panel can still get you a great deal, so long as there are lots of lenders on board - anything less than 10 is no good.
Customer service
In addition to finding you a great deal, a good mortgage adviser will guide you through every step of the mortgage application process, but some stop at simply providing information or making a recommendation. Ask brokers to talk you through the process from start to finish before you commit.
Communication
You need to get on well with your broker and be able to get in touch with them easily. Mortgage advisers operate over the phone and face-to-face, and it's ultimately down to personal preference which method you choose. Both work well, but the most important factor is that you trust and understand their advice, and feel comfortable asking them questions.
FSA-regulated
It is important to use an adviser who is regulated by the Financial Services Authority (FSA), so you're protected should anything go wrong. When you take out a mortgage with advice, the FSA states that you have the right to expect the adviser to recommend products and services that are suitable for you. If the advice is unsuitable, you have the right to receive compensation. Reputable advisers should declare they are FSA-regulated. If you're unsure, check on the FSA website moneymadeclear.fsa.gov.uk/mortgages.
Fees or commission
Some brokers charge a fee for their service, usually around 1% of the amount you are borrowing. Others don't charge but are paid commission by the lender whose mortgage you buy. Some people prefer to pay a fee as it means there's no incentive for advisers to push products paying the highest commissions. But, since the tightening of mortgage regulations, a commission-paid adviser is worth considering in order to reduce the cost.
Protection
It's important to take out some form of mortgage protection (such as life cover or critical illness) and home insurance when you buy a mortgage, and a good broker will advise you of this and make recommendations. But it's not uncommon for a broker to be whole-of-market in terms of the mortgage providers they use, but tied to a particular provider for other services. There is, however, nothing to stop you shopping around for these extras yourself.
Added benefits
Ask your adviser why you should use them instead of going direct to a mortgage provider. This question may stump some advisers, but there are some distinct advantages, such as getting impartial advice, access to the most suitable and competitive deals, and assistance through the application process and beyond. Advisers will also often negotiate special deals with providers, which would not be available direct.
The advice
If the adviser has listened to your requirements, any particular mortgage they recommend to you should clearly fit your needs. Brokers are required by law to give written confirmation explaining their proposal, but it's worth asking them to talk you through their reasons first, just to check they have listened and understood what you need.
Aftercare
So you've listened to their advice and taken out a mortgage, but this doesn't mean the end of the relationship with your mortgage broker. The service will often be a one-off, but many advisers will offer ongoing support, and get in touch at the end of your five-year fixed-rate deal, for example, to check if you're still happy or need further assistance.
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