Jain Fenger posted an update 2 months ago
More than half of all borrowers use a broker to arrange their mortgage. But wait, how do you start finding one? Should you be paying any fees for their services and how can they work?
#1 There are thousands of banks in the UK – more than 10,000! These home loans will range between large companies with nationwide coverage right through to the little one-man bands covering their geographic area.
These different companies may also use the entire variety of advertising media to draw your attention such as the internet, newspapers, magazines, radio, television and telephone book.
When you would rather make use of a local broker, you can get a shortlist of three financial advisers locally from Independent Financial Promotions (IFAP) You may also look online on the numerous directories of banks online to locate one that matches you.
#2 Whenever you have dealings with a large financial company, ensure that you discover whether they are authorised with the Fsa, either directly or just as one appointed representative/principle of one other company. Regulated brokers are listed on the FSA website: fsa.gov.uk
#3 Many mortgage brokers can have usage of thousands of different lenders and items – this could be hugely beneficial while shopping around. It needs to be the aim of all lenders to source the market to experience the best selection for you personally. Beware however, only a few large financial company will be as ethical because the next – make sure you do your research!
If you wish to discover which lenders a mortgage broker can access on their own panel, simply ought to ask them. Brokers will either ask you for a set amount because of their services, or impose a fee nothing whilst buying a commission from the lender, or of course, a mixture of the two. They may be legally certain to disclose details of the commission they receive such as the figure if this is over 250.00.
#4 Mortgage advice is regulated with the Financial Services Authority. Those who give mortgage advice has to be professionally qualified.
#5 Should you be looking for advice on other lending options, as an example on pensions, investments and insurance, remember that these areas can also be regulated from the FSA – your mortgage adviser may not be allowed to give information on these areas. Unlike mortgages, advisers casually investment products should be either linked with one provider or an independent financial adviser that can source the entire of market.
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