Why use a mortgage broker?
Getting a mortgage is one of the biggest financial decisions you’ll make, so it’s important to get it right.
How to choose a mortgage
The mortgage market is incredibly competitive and it can be hard to understand what exactly is on offer.
There are many different providers and a wide range of products and rates available.
So it’s a good idea to talk to an independent mortgage adviser, before making up your mind.
This page will take you through the routes to getting a mortgage and the importance of studying your options before making a decision.
Why it’s usually a good idea to get mortgage advice
Brokers must offer your advice when they recommend a mortgage for you.
They’ll assess the level of mortgage repayments you can afford, by looking at your income as well as your debt repayments and day-to-day spending.
This means you should end up with a mortgage that suits your needs.
Risks of not getting advice
Getting advice, rather than doing research on your own, means that if the mortgage turns out to be unsuitable for you later on, you’ll have more rights when you make a complaint.
For example, you could make a complaint of financial mis-selling if the advice you were given turned out to be unsuitable for you.
Not taking any advice means you have to take the full responsibility for your mortgage decision.
If you don’t take advice, you could end up:
*With the wrong mortgage for your situation, which could be a costly mistake in the long run.
*Being rejected by your chosen lender, because you didn’t understand the restrictions clearly or what circumstances the
mortgage was designed for.
When to see a mortgage adviser
A mortgage adviser, also known as an independent mortgage broker, is a specialist with in-depth knowledge of the market.
They’re able to look at a range of mortgage products which suits your needs.
Omni Finance check the Whole market for a wide range of products.
All mortgage advisers must offer you advice when recommending the most suitable mortgage for you.
This means you’re protected and you can complain to the Financial Ombudsman if things go wrong.
Other reasons to see an independent mortgage broker
*Independent mortgage brokers such as Omni Finance can help you find the best mortgage deals available on the market –
not just from one single provider.
*They work for you - not the lenders. So, you can be sure that they will be showing you the best products out there, not just
the best products in one lenders range, and often have access to exclusive deals.
*Abundant, in-depth knowledge about the market and different individual lenders – meaning they know who will be more
likely to look favourable at your application.
*They’ll check your finances to make sure you can afford the mortgage.
*They often complete the paperwork for you, so your application should be dealt with faster.
*They’ll help you take all the costs and features of the mortgage into account, beyond the interest rate.
*Omni Finance can provide independent advice on a range of related financial products such as insurance, payment protection
What to look for in a mortgage
It’s important not to just look for the lowest interest rate when choosing a mortgage.
There are other factors, which also contribute to the whole amount you pay back over time.
Look out for:
*APRC – (Annual Percentage Rate of Charge) takes some mortgage fees into account as well as the interest rate and
expresses it as a percentage.
*Deposit size – the higher the deposit, the lower the interest rate you are likely to get.
*The standard rate – which your mortgage will switch to once your fixed rate deal ends.
*How often is interest charged? – Will it be paid daily, monthly or annually? Daily interest works out cheaper.
*Flexibility – can you overpay you mortgage without being charged and can you take a break from making overpayments?
*Length of fixed or variable rate deal – do you want to be locked in for a long period, or have more flexibility? There will be
charges if you switch out of a deal before it ends.