Is a mortgage broker or a financial advisor better when you want help getting a good mortgage deal?

We know how much we want and know we can afford it, we just want to go over the options and get a good deal, but I don't know who would have more options, be more honest, etc. We are in the UK.

Any general mortgage/first home buying advice is appreciated.

4 Answers

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  • 1 decade ago
    Best Answer

    The difference between a mortgage adviser and a financial adviser is the qualifications they hold. In order to give mortgage advice an adviser should hold the Certificate of Mortgage Practise whereas to be a financial adviser more qualifications are required in the form of the Certificate of Financial Planning. A Mortgage Adviser cannot advise on any form of investment or pension. In your case you could go to either. More importantly you should look for someone who is independent which means that they can look at the whole of the market (all the lenders). Some advisers are "independent" but actually have a panel of lenders and if so, it is worth asking how many lenders they have access to. The lower the number the less choice you are getting.

    As someone else mentioned, the adviser may charge a fee and try to avoid anyone who charges more than £300 and still receives commission from the lender. There are plenty of reputable advisers out there who charge less than this so why pay it. If you need anymore help please let me know and good luck!

    Source(s): 10yrs + of being a qualified independent financial adviser
  • 1 decade ago

    Their is a massive amount of difference between a financial adviser and mortgage broker all though it is possible for someone to be both. A mortgage broker will have a cmap qualification that will allow him/her to give mortgage advice. I know that in the old days some lenders will insist on you having their insurance but this is not allowed anymore. If you find a broker please do not get ripped off. You should not be charged more than £299 as a brokers fee (paid directly to the mortgage broker for their services) Some companies will charge in excess of £2,000. The average broker will have more than 2000 deals to look at and will filter them down based on the criteria that you are looking for. It is then a matter of choosing the cheapest.

    Good luck

    Source(s): 15 years giving finacial advice
  • leambi
    Lv 5
    1 decade ago

    A mortgage broker deals with mortgages (and usually that is it), this is their area of expertise and therefore would be the best option. A reputable mortgage broker will only charge a small fee upon completion for getting a mortgage offer in place for you so if you don't end up completing a mortgage through them then there will be no fee to pay. They can search a panel of lenders for the best deal available to you and answer any questions that you may have, they will also be able to recommend a solicitor in the area that would suit your needs.

    Source(s): I work for a mortgage broker
  • Copper
    Lv 4
    1 decade ago

    I think they are all the same, although you should make sure they are independant and not just working for one bank. You should shop around. Contact a couple of people to see what they can offer you, and pick the best deal.

    Don't just look at the rate and the amount, but the whole deal. Tie ins etc. E.g. One bank might offer a great fixed rate for 2 years, but charge a huge penalty if you move to another lender within 2 or more years after that. That way they will be able to charge you a large variable rate in the interim period, or get a larg redemption charge from you.

    Some lenders also insist that you take out insurance with them. Check that you are happy with the insurance product before you sign up.

    Good luck!

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