What Does a Mortgage Advisor Do?

Feb 15, 2021

Choosing a mortgage for a new home is one of the biggest financial decisions you will ever make. Therefore, it is really important to get it right! A good way to double check your decisions is to get a mortgage advisor… but what exactly does a mortgage advisor do? If this is the question on your mind, keep reading and find out!

What is a mortgage advisor, and what do they do?

A mortgage advisor is a professional with in-depth knowledge of the housing market. They are basically a financial advisor that specialises in mortgages.  In short, they look at all the mortgages available and help you to decide which one is a good fit for you and your situation. There are three main types of advisor. Some mortgage advisors are connected to a certain lender, some look at certain deals from a limited selection of lenders and some check the entire market, with a wide range of mortgage options. However, not even the mortgage advisor that looks at the entire market can cover everything. For example, they can’t advise you on mortgage options that are only available from a lender directly.

When making recommendations, a mortgage advisor will look at your specific circumstances and take into consideration the size of your deposit, your monthly repayment preferences, interest rates, your credit history and spendings.

What Does a Mortgage Advisor Do?

Should I get a mortgage advisor?

When you borrow money from a lender, usually a bank, they are required to offer you advice so that you can make the best decision for you. You can of course decide not to take this advice and choose a mortgage on your own; this is called an ‘execution-only’ mortgage. Yet, by deciding to take mortgage advice, you can complain if the mortgage chosen ends up not suiting you; not taking advice means you are fully responsible for your mortgage decision.

If you do not take advice, you may end up with the wrong mortgage for your situation. This would be very costly in the long run. You may also be rejected by your chosen lender, because you didn’t have a full understanding of the mortgage you picked.

Is there anything I should be wary of?

Be aware of estate agents trying to push their mortgage advisor on you. It is important that you look around for a mortgage broker, so that you can compare and get the best deal possible for you.

What Does a Mortgage Advisor Do?

How do I choose the best mortgage advisor for me?

There are a few things to keep in mind when searching for a mortgage advisor.

  • Ask friends, family and people you trust for a recommendation. Choosing the right mortgage advisor is an important decision, and you need to make sure you get it right.
  • Chat with your estate agent. It is likely that they will know mortgage advisors and can recommend a few.
  • Make sure that you check their credentials, and ensure to pick one that is fully qualified. A good way to check is to search the financial services register. Again, it is a good idea to compare several advisors before settling on one.

It is really important to think ‘long-term’ when choosing a mortgage advisor. Buying a home is a massive financial commitment, so it certainly makes sense to take your time and consider all your options. You can never be too informed on this subject!