What Does an Independent Mortgage Broker Do?
Even during this credit crunch time and the so called financial crisis that has hit the mortgage and housing markets throughout the word, deciding how to afford and pay for either a first home or another in the run up the housing ladder is very rarely an easy one.
Unlike a personal loan where all you have to worry about is how much you pay a month and how much interest above your loan amount you are paying, mortgages come with far more strings attached that if not fully understood could catch up with us one day.
The independent mortgage broker should be employed to fully explain to benefits and the conditions of all mortgages available at that time, so that anyone about to commit say 25 years of their lives, gets something that will work for them right through out that timescale.
An independent mortgage broker will normally make his or her fees for this support and advice from the commission off the mortgage once a potential house buyer has decided which home loan is right for them. But it is not as simple as recommending a mortgage then getting the commission, the independent mortgage adviser has to prove to you why he has recommended or suggested that particular mortgage, normally in a long letter, which show the facts and figures and clearly spell out any conditions, so that the new home buyer is fully aware, but also to protect that independent mortgage adviser for any come back. It is important this information is correct, because in many cases that independent mortgage adviser is tied to that home lender for the duration of that mortgage, even if it is 25 years or so.
Being independent means they should have no ties with any mortgage lender but just as important must have no ties with any insurance company also, so that all advice is exactly what that client needs and can get the whole package in one place. It is very possible that any savings on the mortgage front can be eaten up by excessive insurance premiums if a mortgage adviser is chosen that it not totally independent.
Most independent mortgage brokers are self employed or part of a small business so do not work under any corporate banner, but this does not mean they are not regulated. In fact all mortgage advisers need to have studied and passed suitable qualifications by law to sell mortgages and then are regulated through the Financial Standards Authority for everything they do and if any client of customer either now or in the future can complain about any bad advice or recommendation directly thorough the FSA.
The high streets of the United Kingdom is full of banks and building societies all claiming to offer great mortgage deals even in these critical times, but it is important to understand that unless you are prepared to research everything that is available on the market, you will never know if the deal you got was the best one for you, unless you consider employing an independent mortgage advisor.
Unlike a personal loan where all you have to worry about is how much you pay a month and how much interest above your loan amount you are paying, mortgages come with far more strings attached that if not fully understood could catch up with us one day.
The independent mortgage broker should be employed to fully explain to benefits and the conditions of all mortgages available at that time, so that anyone about to commit say 25 years of their lives, gets something that will work for them right through out that timescale.
An independent mortgage broker will normally make his or her fees for this support and advice from the commission off the mortgage once a potential house buyer has decided which home loan is right for them. But it is not as simple as recommending a mortgage then getting the commission, the independent mortgage adviser has to prove to you why he has recommended or suggested that particular mortgage, normally in a long letter, which show the facts and figures and clearly spell out any conditions, so that the new home buyer is fully aware, but also to protect that independent mortgage adviser for any come back. It is important this information is correct, because in many cases that independent mortgage adviser is tied to that home lender for the duration of that mortgage, even if it is 25 years or so.
Being independent means they should have no ties with any mortgage lender but just as important must have no ties with any insurance company also, so that all advice is exactly what that client needs and can get the whole package in one place. It is very possible that any savings on the mortgage front can be eaten up by excessive insurance premiums if a mortgage adviser is chosen that it not totally independent.
Most independent mortgage brokers are self employed or part of a small business so do not work under any corporate banner, but this does not mean they are not regulated. In fact all mortgage advisers need to have studied and passed suitable qualifications by law to sell mortgages and then are regulated through the Financial Standards Authority for everything they do and if any client of customer either now or in the future can complain about any bad advice or recommendation directly thorough the FSA.
The high streets of the United Kingdom is full of banks and building societies all claiming to offer great mortgage deals even in these critical times, but it is important to understand that unless you are prepared to research everything that is available on the market, you will never know if the deal you got was the best one for you, unless you consider employing an independent mortgage advisor.
