Why use an independent mortgage adviser?

Mortgages are a big commitment and often one of the biggest financial decisions you’ll make. Whether you’re a first-time buyer, remortgaging your current property or moving somewhere new, the right mortgage can make a real difference.

An independent mortgage adviser is not limited to specific lenders, but can access the full mortgage market to find products across a range of lenders both on the high street and online. They can help you understand the difference between options, avoid unexpected fees where possible, and recommend a suitable deal based on your circumstances.

Types of mortgage repayment

Mortgages are usually available on three main repayment bases.

Interest only - your monthly payments cover the interest charged on the mortgage, but the original loan balance is not repaid during the term. This means you will still need to repay the amount borrowed at the end of the mortgage term.

Repayment - with a repayment mortgage your monthly payments cover the whole value of the loan, including the interest, so by the end of your mortgage term the full loan is repaid and the property is owned by you outright.

Part and part - this combines repayment and interest only. Part of the mortgage is gradually repaid during the term, while the interest-only part will still need to be repaid at the end.

If you choose an interest only or part and part mortgage, you will need a clear repayment strategy for the remaining balance, such as selling the property or using other savings or investments.

Other options, such as self-build mortgages, may also be available. These can help fund both the purchase of a building plot and the cost of building the property, but they work differently from standard residential mortgages and usually need more specialist advice.

Buy-to-let and commercial mortgages can also add extra complexity, so it’s important to get advice that reflects the type of property and borrowing involved.

Types of mortgage rates

Your mortgage repayments will also depend on the type of deal you choose.

A fixed rate mortgage means your monthly repayments stay the same during the fixed-rate period, which is usually between one and five years, although longer fixed rates may also be available. Once the fixed period ends, you will usually move onto a variable rate unless you arrange a new deal.

A variable rate mortgage means your monthly repayments can change, usually in line with the lender’s standard variable rate. This can make payments less predictable, but it may offer more flexibility in some circumstances, such as if you are planning to move home and want to avoid early repayment charges.

A tracker mortgage moves in line with an external interest rate plus a set percentage. This means your mortgage payments could reduce if the tracked rate falls, but they could also increase if the tracked rate rises, unless the product includes a cap.

Additional fees

Mortgage products can come with additional fees, such as arrangement fees, booking fees, valuation fees or mortgage account fees. These should always be disclosed, but they are not always easy to spot when comparing products yourself.

A mortgage adviser can help you understand the full cost of a deal, look for products with lower or no fees where appropriate, and explain your options if the lender allows fees to be added to the loan. It’s worth remembering that adding fees to your mortgage may make them feel more manageable upfront, but it can also mean paying interest on them over the mortgage term.

Your circumstances

A mortgage needs to work for your life, not just for the property you want to buy. Your income, deposit, regular commitments, future plans and attitude to risk can all affect which mortgage may be suitable for you.

Circumstances can change, so it’s helpful to let your mortgage adviser know about anything that could affect affordability in the future. For example, if you’re thinking about taking a lower-paid role or may soon have extra costs, such as a new car loan, your adviser can take this into account when recommending a mortgage that remains suitable for your needs.

This is where independent advice adds value.

Comparing the market and weighing up the details of each mortgage offer takes time - advice can help you get there faster with a mortgage that suits you. Whether you’re buying your first home, moving, remortgaging or adding to your lettings portfolio, our team can help.

Call us today for a free consultation.

Please note: Mortgage eligibility and lending criteria vary between lenders. Your home may be repossessed if you do not keep up repayments on your mortgage. 

This article is intended for general information only and does not constitute financial advice. Mortgage suitability will depend on your individual circumstances.