You would like to remortgage your house, and you have heard about mortgage advisers, but you are not quite sure why you need one.
Firstly, you already know that remortgaging will bind you into a contract for a length of time - it's a big decision.
Secondly, big decisions need consideration, and you need to feel comfortable that you have the facts.
Remortgages and finance, in general, present lots of choices, each with pros and cons - making it difficult for you to feel confident that you've chosen what’s right for you.
That’s why so many people choose a qualified mortgage adviser to help them with the facts.
1. Mortgage advisers know the small print
Not only are qualified mortgage advisers experienced when it comes to remortgage jargon and the facts, but they also know the small print. Why does this matter?
It's best to give an example.
If, for instance, you told the adviser that your job would include a performance bonus if you do well, your adviser would consider that in the types of mortgage they discuss with you.
A mortgage adviser knows that some remortgages will consider bonuses, which might allow you to borrow more, if necessary. The adviser might also look for a 10% overpayment or flexible overpayment option, so you can pay more off your mortgage when you receive your bonus.
Your remortgage choices are vast and each product has its own terms and conditions.
2. Remortgage with a specialist lender
Unlike searching on Google or visiting your current remortgage lender, a mortgage adviser will consider a wide range of companies that can lend you money, some of which aren’t on comparison sites and are specialist lenders.
After assessing what you can afford and your current circumstances, an adviser will match your needs to a range of lenders.
Sounds simple? It actually takes a lot of experience. The adviser is taking a lot of information into account, such as what they know about that lender, the fit to your circumstances, and how they compete with other remortgage products.
3. Remortgage comparison for the best deal
A mortgage adviser will look at more than just the remortgage rate. When you look at a cheap remortgage deal, you need to compare a lot of factors, some on the screen and some off. Only then can you get the full picture, which is what advisers are good at doing.
What an adviser will compare on screen:
- Monthly rate -- a percentage
- SVR - Standard Variable Rate (the cost per month after your deal ends)
- Set-up fees and any cashback
- Monthly payments
- Other fees, including application, product, and valuation costs
- Flexibility, such as overpayments
- Early Repayment Charges (ERCs)
- How much you want to borrow against what you have already paid off -- Loan To Value (LTV)
- Any caps on what the lender will lend to you or a minimum
- The total cost for comparison (APRC)
As above, the adviser will then think about the customer service provided by the lender and whether they are a good fit for your circumstances.
Add to this the various types of remortgage, such as fixed, variable, tracker, and offset, and it’s easy to see why it’s good to have someone to talk to.
4. Cheap remortgage versus high fees
Your adviser will discuss whether a remortgage deal is cheap or whether the costs and fees make it more expensive than an alternative.
You will also receive advice on what fees you can add to your remortgage and which ones need to paid upfront or on completion.
5. Remortgage to save money
Remortgaging your home is an ideal opportunity to discuss affordability with your adviser, especially if you feel that you can’t manage the monthly payments.
The adviser can explain various options, including extending the term of a mortgage to reduce monthly payments, and how that would increase the amount you pay back over time.
You might want to understand how to pay your mortgage off early. The adviser will discuss decreasing the time you take to pay your remortgage back or how offset remortgages work.
6. Mortgage advisers talk about now and in the future
Mortgage advisers often ask you what your circumstances are now and in the future, which might be challenging to answer, but it’s very important.
If you are trying to move up the property ladder and are planning on trading up to a bigger home, then it’s essential to discuss this with your adviser.
Why? Some remortgage products and their terms are more suitable and flexible for this kind of situation.
7. Advisers understand the likelihood of yes
Experience of a ‘no’ response is what helps advisers to understand whether lenders are likely to say ‘yes’ to your remortgage application.
Mortgage advisers are usually part of a bigger company that has agreements with lots of remortgage lenders; they form relationships with them so that they can understand their rules and ideal customer.
After all, there is no point sending you to a lender that doesn’t fit your circumstances.
Some remortgage applications are available online, but unfortunately, not all of them say yes, which is because you have to meet their criteria (rules).
An adviser saves you time and provides you with the best chance of obtaining a remortgage.
8. Peace of mind when you remortgage
As an adviser talks to you and starts to understand your circumstances, they will discuss what other products might be available to you.
You might discuss life, critical illness, buildings, and contents insurance; some of which might need to be in place before a company will lend you money.
Rather than a sales pitch, this is to provide you with a comprehensive assessment of your needs, to give you peace of mind.
9. You might not pay an adviser yourself
Some advisers charge an upfront fee or commission. Information on any costs for advice should be provided to you before you agree to any service.
However, you may not have to pay the adviser anything at all. Some mortgage brokers, like NM Money, are fee free. We don't charge our customers any fee for mortgage advice.
It’s important to discuss and ensure you are comfortable with any fees before any appointments are booked -- unless the first appointment is free.
10. Incorrect remortgage advice protection
The final reason why working with a mortgage adviser is so popular is the protection you receive. If you feel that the remortgage advice you have received was incorrect, there are routes to investigate the adviser, as they are regulated by a professional body called the Financial Conduct Authority (FCA).
Before you discuss your finances with anyone, it’s essential to check that they are real, registered, and recommended. The FCA keeps a list of regulated companies, which you can check here.