Approaching Independent Mortgage Advisors

Willem-de-Blois

Having read MSE's 'First Time Buyers' Mortgage Guide 2014' and Phil Spencer's 2011 first time buyer book, I have decided to approach an independent mortgage advisor.


I have emailed three local advisors asking for a fee proposal but each one has replied offering a free initial consultation. Should I go to all three free sessions?


All three stated in their emails that I will be notified when their professional time becomes chargeable. What would be the best way to proceed should I appoint one advisor?


At this stage, I simply want to ascertain if I have any mortgage bearing capacity to base a residential search upon within the very expensive city of Bath.

pickles13

Can't answer your question but I found a totally free advisor on the internet and (despite everyone telling me that you get what you pay for etc etc), he has been absolutely brilliant (and free!).

Good Luck

ACG

It seems strange that they can not even give you a ball park figure. My fees vary from client to client depending on the work/commission but I would usually ask a few questions to understand the situation and give a ball park figure subject to factfind and credit reports.

Dont go to all 3 appointments, its a waste of your time and theirs. Find one that you like and get on with/are confident with and go from there.

pickles - you would not have a fee free independent broker. Independent brokers charge a fee and rebate any commission - you would probably have had multi tied or whole of market. Typically they are fee free if the commission is enough or cheaper than independent as the commission offsets some of the fee.

Actually I take back the last paragraph. Terminology changed recently and I think whole of market brokers can call themselves independent now, I havnt changed how I describe myself so forgot about those changes.

kingstreet

Any mortgage broker should provide you with Terms Of Business explaining how they are remunerated at the outset of any contact you have with them.

For example, ours tells you we charge a fee of £250 on application and we receive commission from the lender.

Willem-de-Blois

OK Thanks for the replies.


I have replied to the emails stating that my purpose is to find my likely mortgage bearing capacity within bath and I have given them my headline financial stats.


If the likely mortgage is too low for Bath, I'd like to know any financial milestones I would need to achieve in order to possibly receive a higher mortgage at decent usury.

princeofpounds

I'd relax a bit about the charges. Mortgage brokers are typically one of the easier advisory relationships to maintain. As long as they are independents, not EA-linked.

The likely reason they are coy about their fees is that what they intend to charge may actually depend somewhat on what sort of mortgage you are going for. And of course they'd like to get you in the door.

The decision for you likely to be whether you want to pay upfront, or add the fee onto the mortgage if the lender allows that facility.

They are not going to have a problem talking to you for free.

Just visit as many as you have the time/inclination to do so. If you're a total beginner, I'd go to more than one because you have no reference point for fees and you might get a slightly different opinion on which mortgage you should shoot for. But you'll probably find that you get similar options from two good brokers.