Do I need a mortgage adviser?

Organising a mortgage is a major part of buying a property. Whether or not you use a mortgage adviser it is really important to get this stage correct. There are a couple of ways that you can apply for a mortgage and you may consider applying for yourself. By organizing your own mortgage you can take control of the process. You will need to commit a significant amount of time and effort to ensure you are getting the right mortgage deal for your needs. It is worth remembering, most mortgage periods last 2-5 years before you renew. So arranging a mortgage that isn’t right for you can cost you a significant amount of money.

Typically, most buyers choose to appoint a mortgage adviser to assist them in this process. The mortgage adviser will do the leg work for you, and they will search for the best mortgage rate and advise you of the benefits and drawbacks of the mortgages available. Once you have selected a mortgage offer, they will fill in the paperwork for you and submit this to the lender.

Mortgage adviser costs and fees

So, how much does a mortgage adviser cost? This depends, some charge a fixed fee for reviewing and setting up the mortgage and this will vary between £200-£500. If your adviser charges a fixed fee, you will need to pay this once the mortgage as been approved.

It is also very common for mortgage advisers to work on a commission basis. This means they get paid by the lender once the mortgage is approved. On occasions, this commission is added to your mortgage so you will not be required to pay the money upfront.  In some circumstances, the adviser’s commission will be paid by the lender and you won’t be charged for their time.

Given the importance of ensuring you have the best mortgage for your needs, we recommend appointing a mortgage adviser who can explain the sometimes confusing world of mortgage rates and products. Before instructing an adviser, make sure you check how they will be paid. You may need to factor in their cost into your overall budget.