Mortgage Advice

By: Erin Ryan
Submitted: 2007-09-11 12:51:41
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 
Finding independent mortgage advice is not as hard as it sounds. It is very important though if you want to make the right decision about which mortgage is the best one for you. There are plenty of information about mortgages in the public domain on websites, in magazines and tabulated over and over again in mortgage comparison tables. We believe that because there are so many variables within the minefield that is mortgages, that seeking mortgage advice is essential. In fact, we even recommend you speak to independent mortgage advisors or brokers who have access to the whole UK mortgages market because otherwise you might not get advice covering all mortgages available to you. This is even more important if you are trying to get onto the first rung of the property ladder and are a first time buyer. With the property market being so tough in the UK, there are more and more first time buyer mortgages on the market now and good mortgage advice for your first home is essential.Since 2004 the giving of personal financial and mortgage advice in the UK has been governed by the Financial Services Authority. Companies or individuals offering personal financial or mortgage advice must comply with the Financial Services Act or they are breaking the law. Many companies offer consultations on an ‘information only’ basis and you would need to formally agree to having requested to be advised on financial matters. Adherence to the rules of the Financial Services Act is called ‘compliance’. Mortgage advice can be sought from a number of sources:

  • A tied mortgage adviser: These work – and will therefore recommend products – on behalf of just one lender.
  • A multi-tied adviser: These will recommend products from a limited range of lenders.
  • An Independent Financial Adviser (IFA) or Independent Mortgage Advisor: These will recommend products from the whole market.

You are perfectly entitled to ask on what basis your advisor is operating. Be warned though, that if you go to see an Independent Mortgage Advisor, they will be independent on mortgages but perhaps not insurance – and most homebuyers take buildings insurance alongside their mortgage. By researching and reading it is relatively easy to glean a certain amount of useful information but by seeking personal mortgage advice from a mortgage advisor, you will be gaining the expertise of someone who knows all about all the different first time buyer mortgages on the market, what special deals are on offer, the peculiarities of the one lender versus another, what the latest mortgage releases are and of course they will always take your personal plans and circumstances into consideration. As well as verifying who you are, you will be required to provide evidence of major income (your salary) and your major out-goings like car-loans, student loans etc. If you have loans or debts, it does not mean that you cannot apply for a mortgage. Mortgage advice can be given in a number of different ways.It can be given by phone, email or in person - different advisors work in different ways. These days professionals are pretty flexible. In order to give you proper mortgage advice, mortgage advisors will need to a great deal of information about your personal finances. They want to determine that you can and will be able to make the mortgage payments. The last thing they want is to repossess your property if you fail to be able to make the mortgage payments. They will ask your permission before they give financial or mortgage advice. You will probably need to sign an agreement form saying that you agree to being given mortgage advices as opposed to just mortgage information. When the mortgage advisor or mortgage brokers has taken all the information from you about what you want and your finances, you might, after agreeing which mortgage and which mortgage lender is appropriate to you, make a mortgage application.The selected mortgage lender will scrutinise your form and carry outs some checks of their own. Some advisors gain their income form commission they earn from selling insurance policies and mortgages whilst others charge for giving mortgage advice. You are perfectly entitled to ask about what charges will be applicable in your instance. Don’t be intimidated by mortgage advisors. Though they have trained for a considerable time to be able to offer mortgage and financial advice, they are human, just like the rest of us.

Erin Ryan is a consultant of Helen Adams, MD of First Rung Now, mortgage advice for first time buyers.

Article source: Expert Articles

Most Recent Articles in Mortgage Refinance category

  • Home Equity Basics - By: Justin Narin
    Purchasing a home is a huge life event. It's an investment that, over time, could yield a significant increase in value. As the years progress, the value of your home could increase
  • Understanding Mortgage Terms - By: Liza Arwati
    In order to get the best deal on your home mortgage loan, it is a good idea to understand certain terms that are specific to the real estate and financial industry. The following are the common terms you're going to hear when applying for your first mortgage.
  • How to Find a Great Mortgage - By: Justin Narin
    Think the first on-line loan you come across can offer you the best rate? Think again! There are literally hundreds of programs out there, and they all favor different kinds of borrowers. Find and compare the best loan programs out there. Did you know there are things only a loan officer can explain to you about the hundreds of loan programs available to you? Many factors can make the rate you're receiving on a mortgage more attractive.
  • Identifying and Avoiding Mortgage Fraud - By: Brian S. Icenhower
    Recent financial industry distress publicly attributed to widespread mortgage loan defaults has generated mounting pressure on federal prosecutors to increase investigations into incidents of mortgage fraud across the nation.
  • How to Fight Countrywide Loans - By: Kevin Levonas
    Foreclosure Case Law: Tina vs. Countrywide Home Loans Pt.1 An interesting case was decided recently in California: The Tinas fell behind on the mortgage payments and Countrywide foreclosed. the Tina's decided to fight for their homes.
  • H4H program... Hope or Hopeless? - By: Kevin Levonas
    Article on the new H4H program and its current effect
  • Myths and Facts about Lenders' Assistance to Homeowners - By: Katherine Marfal
    About Lenders' Assistance to Homeowners. Debunking some common myths to benefit the home owner.
  • Practical Guide To Prosessing Your Own Home Loan Modification - By: Kevin Levonas
    A mortgage loan modification, when completed succesfully may be the best option benefitting both the bank as well as the home owner. This article helps you in the processes of preparing for and processing your own home loan modiification.
  • Now's the time for First time home buyers to buy their first home - By: Alice Shown
    Realtors are saying that this is a great time for first time home buyers to buy a home.
  • Mortgage plan expected to ease rates pressure - By: Paul Sharp
    The federal government has been planning to boost the mortgage sector to meet the increased interest rates among much expectation. However, lenders apart from the bank have been banned because the funds provided by them have been dried up due to the global disaster.