Mortgage Advisers

EveryInvestor’s comprehensive guide on everything you need to know about mortgages and mortgage brokers. Before purchasing a home consult a mortgage adviser to find out what you can borrow.

Purchasing a home is every person’s dream. Nevertheless, that wasn’t always the case. Before the 1920s, only five in ten families owned their homes. That’s because very few people had enough finances to purchase a home in one lump sum, and until the 1930s, there were no bank loans specially designed to buy a home, something we all know now as mortgages1.

Acquiring a mortgage is one of the most significant financial decisions you’ll ever make. Thus, it’s essential to get it right the first time.  A mortgage adviser guides you in figuring out what type of mortgage you need, the amount of cash you can borrow, and how you’ll repay it.

They’ll then arrange your mortgage plan and take you through the entire process from beginning to end. A mortgage plan can last you over 25 years, so it’s crucial to get individual and accurate advice based on your preferences to get the best mortgage plan for you2.

Types of Mortgages

There are various types of mortgage plans, depending on whether you’re a first-time client, buying a second home, or purchasing a house abroad.

Equity Release

Equity release allows homeowners to unlock the equity tied up in their homes. You can get the cash in either a lump sum or as a drawdown. You also pay the mortgage plan when you die or move into permanent care.

Offset Mortgage

An offset mortgage, simply put, lets you link your mortgage to your savings.  Therefore, your lender uses your cash savings to ‘offset’ the amount of interest your plan provider charges. Your savings don’t repay any of your mortgages, though, they just sit alongside it and save you interest.


A remortgage3 enables you to access a sum of cash while still increasing your mortgage. So, for instance, if you need some money for an extension or if you’ve found a more sustainable deal, the re-mortgage plan is the best option for you.


A commercial mortgage is a loan on non-residential properties that you use for work purposes.


A buy-to-let mortgage is a plan specifically designed for people who want to buy property as an investment, rather than as a place to call home.

What Are the Costs Involved with Hiring a Mortgage Adviser?

The mortgage market is competitive, and it can be challenging to understand what is on offer. There are various providers, mortgage companies and a wide range of products and rates you can comfortably access. Therefore, it’s an excellent idea to talk to your preferred financial institution as well as several mortgage advisers before you make up your mind.  You might also want to use the mortgage payment calculator and evaluate how much you’ll pay in the long-run.

Nonetheless, if you decide on the mortgage plan to take, various charges will be inflicted on you. However, various independent mortgage advisers can charge you in a few different ways.

Types of Mortgages Brokers

The FCA4 regulates various mortgage brokers and financial advisers. The deals and advice offered vary from client to client. Here are some but a few of the mortgage brokers in the market:
Tied Mortgage Brokers

They provide you with products available from one lender that they’re affiliated or ‘tied’ to.  They’ll still offer you advice on various types of mortgages, but they’ll only recommend a specific provider.

Multi-Tied Mortgage Brokers

These offer you access to a broader range of products than the tied broker, but it’s still a select group of plan providers. Again, they’ll provide you with unparalleled advice and help you choose what they think is your ideal option from the lenders they work with.

Whole Market Brokers

They provide you with access to the full spectrum of mortgage products available. They’re not restricted in what they can offer you, so they’re often the best option if you don’t know what you need. Any mortgage adviser that considers themselves ‘independent’ should also provide you with access to ‘whole of market’ deals, and provide you with the option to pay a fee to make sure there’s no bias towards an individual provider.

Advantages of Using a Mortgage Broker

There are several perks to opting for a mortgage broker than a bank. By initially keeping your options open, you’re able to easily compare the whole market to find the ideal mortgage for you. You’ll also get a chance to access exclusive broker-only deals.

Benefits of Using a Broker

Mortgage plans are personal and designed to suit your individual needs. So, it makes sense that the advice you receive when you’re shopping for a mortgage deal is also personal, unbiased, and customised to your specific requirements.
Deciding to use an intermediary will allow you to find the ideal mortgage for you, and they’ll arrange it for you on your behalf. Though it’s costly, in the shorter term (due to their hefty fees), it’s a lot cheaper in the long-term if they can help you secure you a reasonably-priced mortgage deal.

Direct deal mortgages mean that you’re going to go straight to a bank or building society. It has a few drawbacks, as you’re limited in the type of mortgage product and deals you can take. Nevertheless, it means that you can quickly get exclusive deals that most brokers can’t access. The principal plus point in this method is that it doesn’t involve any fees.

Even if you bank with that specific provider, you won’t get any preferential treatment. You’ll still go through the same rigorous checks as any other client. You might, however, be offered a discounted mortgage rate if you’re a loyal customer and already hold other financial products with the firm.

What You Need to Consider Before Taking a Mortgage Loan



It’s the Annual Percentage Rate of Change6. It takes account of your mortgage fees with the interest rate and expresses it as a percentage.


Deposit Size

It significantly has an impact on how much you’ll have to pay in the long-run. The higher the deposit, the lower the interest rates your lender will charge you.


Standard Rate

It’s what your mortgage will switch to after your fixed-rate term ends. No one wants to get swayed by a mortgage deal with a fantastic initial rate, then get a rip-off standard-rate.



The number of times your lender charges you mortgage rates affects how much you’ll pay in the end. Daily interest is less costly than monthly and annually charged interest. You can check the current mortgage rates to see how much you’re likely to be charged.



You need to check out how flexible your mortgage plan is – can you manage to overpay without being charged or take a break from making any monthly payments without being penalized?


Length of Rate

You should also consider checking how long you’re locked into your fixed or variable rate plan, or if you have wiggle room. You don’t want your lender to charge you for switching your mortgage plan before the deal ends.

Frequently Asked Questions

Everything you need to know about mortgages and mortgage brokers.

It’s the legal term for when one can transfer property to another owner – a conveyancing solicitor works to ensure that the process is legally valid and that you get all the title deals to your estate.

Well, this depends on the plan provider you choose. Most providers use the affordability mortgage calculators to figure out how much you can borrow. Nonetheless, you can borrow up to 4.5 times your annual salary.

The amount massively depends on your credit rating. You need at least a 5% deposit to buy a house, though typically, this tends to be slightly higher, or 25% for rental properties. 

You have to pay Stamp Duty Land Tax when you purchase a property or land over a particular price in England and Northern Ireland. The tax is different if your estate or land is in Scotland or Wales.

In the current mortgage market, the threshold for residential properties is at £125,000, and that for nonresidential land and estates is £150,000. There’s a discount (relief) on how much you pay if you complete the purchase. The purchasing price is £500,000 or less, or if you’re a first-time buyer.

No, they’re not, equity release plans involve unlocking the equity tied up in your home, thus allowing you to stay in the house for the life of the loan. You also get a lump sum amount or drawdowns, depending on the plan you choose.

Re-mortgaging, on the other hand, is when you settle your existing mortgage debt by taking a new mortgage deal. It’s usually done to save cash with a lower interest rate or to raise capital by borrowing against equity.

In most cases, mortgage deals are portable, but this is, of course, subject to the plan providers’ underwriting criteria.

When taking out a mortgage plan, most plan providers will advise you to get protection so that if something happens to you, your kinfolk won’t go through tiresome legal procedures or be burdened with continuing the payments.

Some plan providers will only offer you a mortgage plan if you also take out a life insurance policy for the value of your mortgage.

It depends on your lender. However, this figure is a highly unique amount that also depends on several factors, like the amount you borrow, the mortgage interest rates available, and how long it’ll take to repay the mortgage deal.

Mortgage lenders offer you convenience, quality service, and mortgage deals; they’re also cost-effective and offer you independent advice. Therefore, if you need to find the best mortgage deal for you or your family, ensure that you seek professional advice first and get a mortgage lender that’ll offer you a deal that will not only favour your pockets but will also cater to all your needs.

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