Mortgage advice:
Should I use a mortgage advisor?

When you need to get a mortgage, it is essential you know what type of mortgage works for your needs. Mortgage advisors can help you compare and choose a mortgage product.

Choosing a mortgage

Of all the decisions in life, buying a home definitely ranks amongst the most challenging. Choosing a mortgage, let alone getting one, is no picnic either. That’s why most people get a mortgage advisor to help them select a mortgage that’s right for them.

Choosing the wrong mortgage can mean a long road of paying high interest rates that fluctuate on a whim. so it’s especially important to take your time when shopping around. Read our guide on comparing mortgages for information on the various types of mortgages available.

Why you should get a mortgage advisor

Mortgage advisors are specialists with expert knowledge of the market. Their purpose is to find you mortgage products that reflect both your needs and unique circumstances. Because no one advisor is exactly the same, you might want to talk with few of them to get a clearer overall picture of which mortgage is right for you. Keep in mind that some advisors may charge before giving you advice however. Picking a mortgage advisor depends on your reasons for getting a mortgage as well, some of which include:

First-time buyers

If you’re a first-time buyer, your experience with mortgages is obviously going to be lower than veterans of the property ladder. This makes getting a mortgage advisor all the more important, not only to help you learn, but also to make sure you don’t pick the wrong type of mortgage.

Remortgaging advice

People remortgaging their homes might have previous experience with mortgages, but it doesn’t mean they know how best to remortgage. It’s not uncommon for people to remortgage, only to then find out they’ve barely saved anything and the trouble they went to remortgage wasn’t actually worth it. Getting a mortgage advisor to help you find a better mortgage deal is a smart way to reduce hassle, cost, and most importantly time.

Dangers of not getting a mortgage advisor 

First and foremost, the biggest risk of not getting a mortgage advisor is wasting time, which in the business of buying a home is something you can’t afford to do. A seller has numerous buyers trying to purchase their property at any one time, so getting approved for a mortgage earlier puts you in an advantageous position.

The wrong type of mortgage

Second is the risk of choosing the wrong mortgage, something too many people still do. Being locked into the wrong type of mortgage means you’ll end up paying more than you’d otherwise have to. A mortgage advisor can take your personal needs into consideration when picking a mortgage product, meaning they can find one that fits into your budget, your lifestyle, and your preferences.

Lender rejection

You might have already chosen your ideal mortgage lender, one offering seemingly the perfect mortgage deal. You go to apply and next thing you know, you’ve been rejected and are left scratching your head. This is because you probably didn’t understand the restrictions, or what circumstances the mortgage was designed for. Working with a mortgage advisor helps you avoid this situation, because they’ll be able to analyse the mortgage loan and tell you honestly if it’s the right one for you.

Security

Sometimes mortgages go wrong, even if they’ve been picked by the world’s best mortgage advisor. If a mortgage goes wrong and you don’t have a mortgage advisor though, you’ll have less rights to make a complaint. Using a mortgage advisor gives you protection if things don’t work out and you’ll be able to complain to the Financial Ombudsman.

Banks and building societies

You could always consider speaking to your bank or building society; they already know your financial situation and can quickly provide mortgage options to match. Take their advice with a grain of salt though, as their primary concern is selling you a mortgage. You can definitely still use their advice in your hunt for a mortgage and it’s usually free.

When is the best time to see a mortgage advisor?

Honestly speaking, the earlier you see one, the better informed you will be. And with buying a home, being informed and ready to go is often more valuable than the money in your account. You should make sure you have important details to hand when you book an appointment with a mortgage advisor. These are things like your salary slip and bank statements (at least 3-6 months’ worth), or your SA302 if you’re self-employed.

How much does a mortgage advisor usually charge?

Mortgage advisors charge differently depending on which service they’re offering and how they deliver them. It’s good to be aware of how they charge from the outset, so you have a clearer picture of your total costs.

Fixed fee

If your mortgage advisor is fixed fee, they’ll apply all charges to every piece of advice they give. Fixed-fee mortgage advisors generally charge between £500 – 600.

Hourly rate

As it says on the tin, and hourly rate mortgage advisor will cost you more the longer you talk with them. Picking the right mortgage takes time, so we don’t advise trying to hurry your advisory period to save money as it could cost you more overall.

Percentage

A few mortgage advisors charge based on the percentage of the mortgage. For example, a one per cent fee of a £170,000 mortgage would cost you £1,700.

Combination

Some mortgage advisors combine a set fee and commission; others charge fees but will cap them at a percentage of the mortgage. Some combination fee options include:

  • An advisor will charge fees when they research the market and give you advice, which is payable from the start. They’ll also receive commission from the mortgage lender.
  • Alternatively, an advisor will charge a fee when you apply for a mortgage, before refunding the commission they get from the mortgage lender.
  • An advisor might charge a fee when you get a receipt of your mortgage offer. You’ll be refunded any commission they receive from the lender.
  • Your advisor could charge a fee on completion of your mortgage and then return any commission they get from the lender.

Finding a mortgage advisor

At OneDome, we have a team of talented mortgage experts with years of experience helping people make the right mortgage decisions. If you have any questions about the mortgage process, our advisors will be more than happy help.

We also have a great tool to help you pre-qualify for a mortgage; the Mortgage Passport. With it, you can get a Mortgage in Principle and use it to stand out from other buyers, as well as compare mortgages from 90+ lenders.

Want to learn about how mortgage rates are set? Check out our guide on mortgage rates here, which also features essential information on lowering your overall costs.

How can OneDome help with mortgages?

As the UK’s first transactional property portal, we cover every step of home buying and selling, including mortgages. We’ve made browsing mortgage products, pre-qualifying for a mortgage, and getting a Mortgage in Principle an effortless experience. Our tool, the Mortgage Passport, is a convenient way to get an accurate quote and stand out from other buyers too. For more information on how OneDome can help you get a mortgage, contact our mortgage specialists directly on 0203 8686 262 between 09:00 and 17:00.

Looking to understand mortgage rates? Read our comprehensive guide on mortgage rates here.

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OneDome FS mortgage services only charges a fee for adverse credit customers. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is £500. Under any other circumstance we will not charge a fee. OneDome is a trading name of OneDome Financial Services Ltd which is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority.
OneDome Financial Services Ltd. Registered office 5th Floor, Dean Bradley House, 52 Horseferry Road, London, United Kingdom, SW1P 2AF. Registered in England Number: 11497590