Should I use Mortgage Advisor or Mortgage Broker?

the_operator

Hi - I'm a little confused. I need some help, I'm about to try and purchase my first home. Should I be speaking to a mortgage advisor or mortgage broker?

I'm unsure of what the actual difference between both of these are? Can anyone clarify for me please.

I have a mortgage advisor calling me back tomorrow so I can have a chat with him to see if he can help me, what sort of questions should I be realistically asking him at this early stage also?

Thanks for any help!

ACG

There is none. I think typically an advisor is in a branch and a broker is whole of market (or more than just the one lender).

What questions do you want the answers to?
Typically I get asked about fees, fees I charge and other fees (ie valuation, legal etc), an idea of rates and timescales. But ask whatever you want.

the_operator

ACG wrote: »

What questions do you want the answers to?
Typically I get asked about fees, fees I charge and other fees (ie valuation, legal etc), an idea of rates and timescales. But ask whatever you want.

Thanks for the reply, I want to ask questions about the service and what they provide. Being in the armed forces means I'm away from the location I am trying to buy a house at so I want to know how often I would need to go and see him etc or if a lot of it can be done by email/post/telephone

Ideally, I would prefer it u I could get someone to do just about everything for me and all I would have to do is provide all my personal information! Like he would sort the decision in principle, negotiate legal fees and purchase cost and sort the best rate mortgage available to me? Is this possible :j

ACG

Your broker will probably love you.

Dont get me wrong, I have no issues being on the phone every 5 minutes for clients asking all questions, but when you get a client who just says there the factfind, theres the documents you requested I will call you if I need anything, its quite nice.

the_operator

Appreciate your advice ACG. :beer:

Malmo

From a client's perspective, I treat finding a good broker pretty much the same as any other service provider or tradesperson. In addition to using reputable sites and/or reviews and ratings, such as Trustmark or Buy With Confidence for certain trades or businesses, or the Law Society for legal matters, I place a lot of importance on how the individual or representative comes across when I contact them, be it via email or phone.

I emailed 4 brokers after searching through the Unbiased website. I also looked at their websites to see what content they had and how professional their online "shopfront" was, along with Social Media presence and activity. I was called or emailed back by all of them promptly. However, only 2 provided me with their IDD (like a terms of business, outlining fees etc). Of the ones that didn't, he wanted to see only my Equifax report and not the other 2 agencies reports, which seemed odd so I discounted that one. The other one referred me to another broker not attached to the firm I contacted, one who I had no information on, so I didn't want to pursue that one.

So of the 2 remaining, it came down to how articulate they were and how knowledgeable they appeared, particularly about past adverse markers on our credit reports. The one I wanted to give my business to was very thorough and explained much more than I anticipated without being prompted, including what other non-broker costs I can expect during the process and when.

The key things I look out for generally are:

Are written responses professional, thorough and detailed?

Did they answer my initial queries to my satisfaction?

Do they give a perception of being knowledgeable, assured and confident, as opposed to being sales oriented or slick without any substance?

As far as specific broker related questions go, I'd want to find out at least the following:

What the broker's fee structure is and when the fee is payable, if they are a fee based broker

The buying & selling process & time line

What other buying related costs to expect and when

Whether or not they will help in moving things along and having conversations with estate agents and conveyancers

If they can recommend a local conveyancing firm that is on the chosen lender's approved panel

What days and times they are available

How they can be contacted

dunstonh

In addition to using reputable sites and/or reviews and ratings, such as Trustmark or Buy With Confidence for certain trades or businesses, or the Law Society for legal matters, I place a lot of importance on how the individual or representative comes across when I contact them, be it via email or phone.

One consideration is that firms with good reputations and a good stream of business and referrals tend not to advertise. They also tend not to use website ratings trying to promote themselves. Also, outside of city locations, firms are less likely to have any internet coverage.

I emailed 4 brokers after searching through the Unbiased website. I also looked at their websites to see what content they had and how professional their online "shopfront" was, along with Social Media presence and activity.

If you had searched that way for firms in our locality, you would have found the employed advisers and salesforces. Not the small firms.

Not saying your way is wrong but you would eliminate a good number of reputable firms that way and found yourself with a selection of firms with a budget for flash websites.

Malmo

dunstonh wrote: »

One consideration is that firms with good reputations and a good stream of business and referrals tend not to advertise. They also tend not to use website ratings trying to promote themselves. Also, outside of city locations, firms are less likely to have any internet coverage.

Whilst I accept your points, in the absence of a reliable recommendation from someone benefiting from a smaller firm's services, there are few other methods available to find the right adviser / broker. What I do now is to recommend the broker I used to anyone I know looking to buy or remortgage, including my own buyer in a welcome / moving in pack I left in the last home.

MortgageMamma

One thing I would keep in mind when looking for a broker is if they seem rushed, talk too quickly or have limited time for you on the phone. It may indicate that they have a lot of other cases on the go and customer service may be affected. Try and work with a broker who gives you plenty of time to speak (and think!) and who you feel instinctively comfortable with.

Its also important that your broker checks your understanding of what is being said, as its pointless receiving advice but not quite being aware of the full implications and costs of what you are doing, as well as some of the smaller details. A good broker will check you understand what you are considering before you sign on the dotted line.

When looking at your client/adviser agreement, pay attention to how the broker fee is payable and under which circumstances its not. Its highly individual with each broker when they trigger the "paid for" part of the transaction. If there is anything in the agreement that doesn't make sense get your broker to explain it.

Good luck!

MM

lauren_hb

Been weighing up the same question in my mind for a few days! Very useful replies!

lauren_hb

Can I ask though, when is a good time to approach a mortgage broker?
We were looking to buy around July/August, savings aside from our deposit will be where we want them by then, however my partners job situation has changed and will most likely be an added complication. So is seeing a broker sooner rather than later a better idea?