Should You Use a Mortgage Adviser?

Buying a home is one of the most expensive purchases a person can make in their lifetime. It’s exciting, but it can also be stressful, especially when it comes to securing a mortgage. With hundreds of deals on the market and an endless list of lenders, rates, fees, and jargon to figure out, it’s no wonder many people feel daunted by the mortgage process.

That’s where mortgage advisers come in. These financial professionals are dedicated to helping homebuyers from the start. While it isn’t mandatory, should you use a mortgage adviser to secure your mortgage?

In this article, we’ll explore what a mortgage adviser does, their advantages and disadvantages, how to find a mortgage adviser, where you can find and compare mortgage deals on your own

 and whether working with a mortgage adviser is the right choice for you.

What Does a Mortgage Adviser Do?

A mortgage adviser, also known as a mortgage broker, serves as a middleman between borrowers and lenders. Their job is to help you find the most suitable mortgage deal based on your financial situation and long-term goals. Once you’ve chosen a mortgage, the adviser will handle the paperwork and communicate with the lender on your behalf. They also guide you through the mortgage process, from pre-approval to closing.

A fee-free mortgage adviser offers professional, tailored advice without an added financial burden. This can be especially helpful for first-time buyers or anyone trying to keep upfront costs low. Fee-free advisers are often paid by the lender once your mortgage completes, meaning you still benefit from access to a wide range of products without sacrificing impartiality or quality. It’s a win-win: expert advice without the price tag.

Advantages & Disadvantages of Using a Mortgage Adviser

Is using a mortgage adviser actually worth it? For many people, the answer is yes, especially when you consider the value of expert advice during such a big financial decision. However, other people may prefer to handle the process and find a mortgage deal themselves.

Advantages

  1. Access to More Deals – Mortgage advisers give you access to deals you wouldn’t find on your own, even deals with better or exclusive rates.
  1. Saves Time and Reduces Stress – Comparing mortgage deals and trying to understand terms can be time-consuming and confusing. A mortgage adviser does the legwork for you, saving you time and reducing stress.
  1. Increases Your Chances of Approval – An adviser knows what lenders look for and can match you with lenders where you’re most likely to be approved.
  1. Receive Tailored Advice – Mortgage advisers offer tailored advice, which can be invaluable, especially for first-time buyers and self-employed borrowers.
  1. Peace of Mind – There’s comfort in knowing a professional is guiding you through one of life’s biggest financial decisions. Mortgage advisers are qualified and legally obligated to act in your best interests, which gives you peace of mind and an added layer of security.

Disadvantages

  1. Fees – Most, if not all, mortgage advisers charge a fee for their services. Fees can vary widely and might be charged as a fixed fee, a percentage of the amount borrowed or a commission from the lender. These fees add to the overall cost of securing a mortgage.
  1. Potential Biases – While many mortgage advisers are committed to finding the best deal for their clients, advisers can have biases towards certain lenders due to stronger relationships or higher commissions.
  1. Possible Delays – A mortgage adviser works as a middleman, which adds an additional step to the process and may lead to delays in the application stage.

How to Find a Mortgage Adviser

There are many places online where you can find the right mortgage adviser in the UK. Let’s take a closer look at a few popular options, including their pros and cons.

Financial Conduct Authority

The Financial Conduct Authority (FCA) is the UK’s regulatory body for the financial service industry, ensuring that advisers and firms operate transparently and fairly. The FCA plays a vital role in protecting consumers by maintaining a public register of all authorised and regulated financial firms and individuals in the UK. You can use the Financial Services Register to verify whether a mortgage adviser or broker is authorised to conduct financial activities.

Pros

  • Official, government-backed source
  • Easy adviser verification
  • Free to use the Financial Services Register

Cons

  • Doesn’t connect you directly with mortgage advisers
  • Complex terminology
  • You can’t filter by adviser type

Website: https://www.fca.org.uk/

Personal Financial Society

The Personal Financial Society (PFS) is the professional body for financial planners in the UK and part of the Chartered Insurance Institute (CII). It aims to create public trust and confidence in the personal finance profession by establishing standards and enhancing professionalism. The site offers a searchable register of its members, including those who are mortgage advisers and Chartered Financial Planners. Users can enter their postcode to find qualified advisers nearby as well as their contact details, areas of specialism and qualifications.

Pros

  • Trusted professional body
  • Chartered adviser listings
  • Strict ethical standards

Cons

  • Less user-friendly
  • No client reviews or ratings
  • You have to contact the adviser directly

Website: https://www.thepfs.org/

FinancialAdvisers.co.uk

FinancialAdvisers.co.uk works by connecting people with a broad database of FCA-approved mortgage advisers and firms across the UK. Whether you’re buying your first home or remortgaging your house, this online platform simplifies the process of finding a mortgage adviser by allowing users to search for advisers based on their location or through their ‘Get Matched’ service.

By entering your postcode in their directory, you will be given a list of mortgage advisers in your local area. You can also filter the results by service and distance. Each adviser profile includes their contact details, areas of expertise, and FCA registration number.

Pros

  • Free ‘Get Matched’ service
  • Easy-to-use adviser directory
  • Only FCA-registered firms and advisers are listed

Cons

  • You have to contact the adviser directly unless you use the ‘Get Matched’ service
  • May need to find client reviews elsewhere
  • Limited details on each adviser

Website: https://financialadvisers.co.uk/

Where Can You Find and Compare Mortgage Deals?

If you want to explore mortgage deals or get a sense of rates and lenders yourself, you can use a mortgage comparison site instead of a mortgage adviser. Let’s break down some of the most popular mortgage comparison sites in the UK.

Compare the Market

Compare the Market is one of the UK’s most recognised price comparison websites, originally known for insurance but now widely used for mortgages, utilities, and credit cards. Their mortgage comparison tool allows users to browse deals from a wide selection of lenders by inputting basic details like loan amount, property value, and initial term. The platform is easy to use and mobile-friendly, offering quick filtering by fixed or variable rates, term lengths, and monthly fees.

Website: https://www.comparethemarket.com/

MoneySuperMarket

MoneySuperMarket is another powerhouse in the UK comparison space, offering an extensive mortgage search tool. It allows users to compare fixed, variable, tracker, and offset mortgage deals from a wide variety of lenders. The site is updated frequently, ensuring users see relatively current offers, and it lets users see monthly payments, initial rate, initial term cost, APRC, and product details in one view.

Website: https://www.moneysupermarket.com/

GoCompare

Go Compare also provides a mortgage comparison tool. It enables users to search by mortgage type, property value, deposit amount, repayment type, term length, initial rate type and initial rate duration. At a glance, results are presented clearly with initial monthly payments, APRC, and upfront fees.

Website: https://www.gocompare.com/

The Bottom Line

So, should you use a mortgage adviser? While it’s possible to secure a mortgage on your own, there’s no denying the value a mortgage adviser can bring to the table. From saving you time and money to helping you through the process, their expertise can make the home buying journey smoother and less stressful.

Ultimately, the decision comes down to personal preference, the complexity of your financial situation, and how much time you want to spend in finding the best deal. For first-time buyers, those with unique financial circumstances, or anyone who simply wants peace of mind, using a mortgage adviser can be a great investment.

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