Do you really need a mortgage advisor?
Most homeowners in the UK, including many landlords and property developers, have a mortgage. Because most mortgage products on the market are fixed for 2 years, property owners are likely to remortgage many times in their lives. But how many of us shop around? Or do we simply renew with our existing lender because it is easier?
You could do your own research and harness online platforms like Uswitch to find a better deal for your mortgage. But how do you know that you are getting the very best product for you?
Most people hire a financial advisor when buying a new home, but when the fixed rate ends, we often figure things out for ourselves.
As we make the decision to move house, we will make sure that we have a nice little nest egg saved up, particularly if we are buying a property for the first time and don't have equity to transfer to a new purchase. Once the deposit funds are in place, you can get stuck in and find a new home.
And this is where the questions come in. What is your budget? Is it determined solely by the amount of savings that you have? Do you go to your bank to apply for a mortgage? After all, they know your financial status and can see your accounts, so that would be easiest, wouldn't it?
There might be a better option. Uswitch says, "For many people, a mortgage will be the most expensive financial product they take out in their lifetime. The UK mortgage market is in a constant state of flux and influenced by numerous variables from interest rates to property availability." This ever-changing landscape can be challenging to navigate, meaning you should ask a professional for guidance.
Should you go to every bank branch on the High Street? This would take up hours of your time, not to mention the damage it can do to your credit profile. However, comparing the various products from different lenders can also be complicated because the parameters are often different. Parsing these options to filter the best deal for you would be practically impossible. In addition, this avenue will only show you deals from High Street lenders.
There are hundreds of lenders in the UK, each offering many different products, meaning you could have thousands of options.
This is not to say that you couldn't get a mortgage from your bank or a High Street lender, but when you commit to a substantial loan, fixed for several years, surely you would want to know if there was a cheaper option.
So, what should you do? The best way to handle a new mortgage, whether for a new property purchase or a remortgage at the end of a fixed-rate period, is to speak to an independent financial advisor, particularly one that has access to the whole market.
An IFA can filter through the possible mortgage products to find the one that best suits you and your circumstances. This will mean that you can be confident that you have the best mortgage deal with the most favourable rates to suit your needs. This guidance and advice could save you hundreds of pounds each month, depending on the value of your mortgage. Not only that, they are there to help and support you, gathering the relevant information needed for the lender to properly consider your loan application.
If you have any further questions or would like to speak to an Independent financial advisor, contact our team.