Independent Mortgage Advisors
Independent Mortgage Advisors… Are They Any Good?
Because I have been involved in the mortgage industry, re-financing home loans and investment property loans, and have been an avid property investor myself for over 17 years now, I get a lot of people asking me questions like:
1. Are independent mortgage advisors any good? And should I trust them?
2. What are the advantages and disadvantage of mortgage?
3. What are the monthly payments on mortgage?
4. What will be my refinancing mortgage rate?
5. How does a reverse mortgage work? What are reverse mortgage pitfalls and the disadvantages of a reverse mortgage?
6. If I get a mortgage how much can I borrow?
Well first and foremost, receiving quality mortgage advice is absolutely critical to ensure you that you get the most suitable type of loan that is specifically tailored to your individual needs.
Everyone’s situation is different, therefore, everyone requires a full assessment of their current position and their goals and objectives moving forward to ensure they get the best loan suited to them and of course at the most competitive interest rate and on going fees.
Now because there are literally hundreds of mortgage packages available in the market, for many people finding the right mortgage to suit their needs can be a very difficult and daunting task. And to be quite honest, unless you are involved in the mortgage or refinance industry, it can be rather difficult in working out the best deal to go with.
So yes, I believe that an independent mortgage advisor can be extremely beneficial in assisting people to get the right loan, with the lowest possible monthly repayments and one that totally suits the needs of the borrower.
Lets Quickly Look At The Different Type Of Mortgage Advisors
There are three main types of mortgage advisor including: a ‘Tied Agent’, a ‘Multi-Tied Agent’ and of course an ‘Independent Mortgage Advisor’. So what is the different between the three?
1. A Tied Agent, as the name suggests, is tied to recommending (or selling) only mortgage products from the company that they represent. Now, because this person has a vested interest in promoting only products from the one financial organization, your options are severely limited and your chances of getting the most suitable mortgage to meet you needs is drastically reduced.
2. A Multi-Tied Agent, as you may have now guessed, represents a number of different companies, therefore, can offer you a wider range of mortgage products and packages. Now, this option is definitely better than using a tied agent, however, the range of products offered is still limited and therefore does not represent your best option in finding the best possible mortgage.
3. An Independent Mortgage Advisor on the other hand is not tied to any corporations and can offer you mortgages from any lender across the entire lending market. What this means to you is, your independent advisor can search all available packages and therefore offer you advice on the best possible mortgage product.
Should I Use A Mortgage Advisor Or Not?
Well the short answer is yes, but you must use the right type of advisor.
As can be seen above, an independent advisor is the best option for you. Here are some additional reasons why an independent advisor is the best way for you to go:
1. Widest selection of mortgage products provides the best opportunity for you to get the best possible package (sometimes even special deals that are not always available to the general public).
2. Lowest possible rate and on going fees. Your advisor can save you a substantial amount of money over the life of the loan simply by finding you the best possible combination of low interest rates plus low monthly fees.
3. Can assist you to present your financial situation in the best possible way to the lending institutions to ensure your application for finance is viewed in the best possible light, giving you the best chance of being approved.
4. You will receive solid professional advice, which is great not only for first home buyers, but also for seasoned investors alike, simply because the mortgage market is always changing and is extremely complex
How Much Will This Cost Me And What Happens If I Get The Wrong Advice?
Engaging the services of an independent advisor generally costs about 1% of the amount you are borrowing. Now this might seem like a lot, however, when you consider how much the advisor actually does for you and how much they can save for you off the loan, the service generally more than pays for itself.
These fees can generally be added to the amount borrowed so you don’t have to pay anything out of your own pocket, however, some advisors may also want some kind of payment up front. Simply shop around to find the best advisor in your area and negotiate a deal that is right for you.
Now what happens if an advisor gives you some bad advice? Well, all independent advisors are fully regulated by the FSA (Financial Services Authority), which means if you are given inaccurate advice then you can take the issue up with the Financial Ombudsman and provides borrowers with a substantial amount of protection.
Self Education Is Extremely Important To Ensure You Get The Best Possible Mortgage For You!
It is highly recommended that you educate yourself about mortgages before you take the plunge into purchasing any property. This will arm you with all important knowledge that can help to make sure you get the right deal for you. Here are the top 4 resources I have found:
1. Mortgage Cycling – How To Pay Off Your Mortgage Sooner. Click Here
2. Mortgage Loan Tips & Techniques – How To Get The Lowest Mortgage Rates And Fees. Click Here
3. How To Save Tens Of Thousands Of Dollars Off Your Mortgage. Click Here
4. Mortgage Secrets For Property Investors. Click Here
Now, for those of you that already have a mortgage and may have fallen into financial difficulty with the poor state of the world economy, here is an invaluable resource that can help you out if you are behind in your mortgage payments, or if you are actually facing foreclosure:
Foreclosure Defense. Click Here
You Can Also Check Out This Quick Video About Independent Mortgage Advisors
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