We have asked Stephen Stoops from Conquer Mortgages to offer some advice to wishful homeowners who rely on financing to secure their home. Stephen has a wealth of experience helping buyers find the right mortgage, here is what he said about the decision of using an independent mortgage advisor or going directly to your bank.
“I’m often asked the difference between going directly to a bank or building society or going through an Independent Mortgage Adviser, well let’s look at the differences.”
Going Directly to the Bank
If you go direct you only have that one lender’s products to choose from, so how do you know that you are getting the very best mortgage deal around, as products differ greatly from lender to lender. Lenders differ in their approach to lending and treat each individual differently. Lenders operate different credit scoring systems, so where one may lend another may not.
For instance if you are a first time buyer and have no other existing credit, then one of the major lenders will restrict you to 85%: Lenders look at affordability differently, so if you do six different affordability calculators with six different lenders, then you will get six different amounts.
Different lenders look at your outgoings differently, some will take monthly pension payments as a commitment, while others will see these as a discretionary outgoing and ignore these for affordability purposes, so are you getting the maximum available?
Then there is the property you are thinking of buying, many properties have different construction types, some lenders will lend on some and not others.
Using an Independent Mortgage Adviser
Independent Mortgage Advisers are exactly that, they deal with all lenders and can get access to the very best mortgage deals around; they will research the market to ensure they get you a lender to suit your many different requirements.
Choose an Independent Adviser that has experience of the whole market and can tell you the differences between lenders and their approach to lending. Many banks offer preferential rates to Independent Advisers, which may be better than the rates available in the branch.
A good Independent Mortgage Adviser will do more than just find you the right mortgage, they will liaise with your solicitor, lender, surveyor and the estate agent to ensure the whole process is as stress-free as possible, acting as your Project Manager. Some Independents do charge a small fee, however, in many instances it is well worth it.
As you can see, buying a property and getting the right advice can be a minefield, Conquer Mortgage Services have over 32 years experience in the mortgage market, we are experts in our field, so for the right advice call us on 0141 889 7919 or by e-mail firstname.lastname@example.org it will cost nothing, but may prove to be extremely valuable.