The Cost Of A Mortgage adviser

The process of buying a home, while very exciting, is not exactly all fun and games. As you navigate the process, you realise that there are a lot more costs and paperwork involved than you’d ever imagined. Chances are, the word ‘costs’ in this headline may even be unsettling you. Especially if you’re a first-time buyer, you’re likely doing your homework on ways to cut costs and get the transaction done as efficiently as possible. Can you relate?

Lucky for you, there’s a whole profession dedicated to doing just that for potential homebuyers. Mortgage advisers act as middle people between buyers, lenders, and estate agents to ensure that the most favorable conditions are achieved in order to secure the funds for your dream home. Their work in the home-buying process can be invaluable and can save you thousands in the long run.

But what and how do mortgage advisers charge?

Your mortgage adviser could either charge a flat service fee charged to the borrower (you), or a commission fee charged to the lender (the bank). In certain cases, advisers may earn fees from both parties. The current average mortgage adviser fee is anything between £400 – £700. The rule of thumb is that mortgage adviser fees should hover between 0.3% – 1% of the total loan amount, and they should never exceed 1%. 

It’s important to note, though, that fee structures may vary depending on the complexity of each case.

However your mortgage adviser chooses to charge, it’s the costs in the long run that will add the most value to you as the homebuyer. These are some of the major perks of enlisting the services of a mortgage adviser.

A broader view of the lending landscape

If your mortgage adviser is worth their salt, they will have the best current knowledge on trends, varying rates, and potentially unfair payment terms. Sure, you could do the research yourself, but remember this is a subject-matter expert. In addition, consider the time you’d spend on conducting this research yourself, given the broad lending market in the UK. You may even struggle to get an appointment with the banks or building societies in question. Your mortgage adviser, if independent will have all at their disposal.

Existing relationships with lenders

Mortgage advisers are in the unique position to have good relationships with various lenders, making it easier for them to shop around and obtain the best rates on the buyer’s behalf. Some institutions also only work with mortgage advisers rather than directly with the borrower, so by having this taken care of by a mortgage adviser, you’re widening the pool of lending options. They will also be best placed to identify specific lenders for specific situations. They understand the lending criteria for each respective lender and whether you will be eligible.

The objective: save money

Ultimately, your mortgage adviser’s most obvious indicator is their ability to save you money. The two factors mentioned above make it possible for them to secure the best deal at the best rates. What’s more, you’ll be saving heaps of time and unnecessary stress, too.

It’s in the name

Remember, mortgage advisers, are there to advise. It’s their job to protect you from any mistakes and bad decisions and to steer you in the right direction throughout the purchase process. With all the excitement alongside the anxiety that comes with buying a new home, it can be very easy to get caught up in it all. Rely on the help and support of a trustworthy mortgage adviser to tick all the boxes you may miss. 

Sure, saving money might be the biggest motivator for enlisting the services of a mortgage adviser, but you’ll find that the benefits go well beyond that. 

So, what’s the true cost of a mortgage adviser? If you ask us, it’s peace of mind.

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