Getting the right mortgage advice
We know that getting the right mortgate finance can be a matter of concern. So we've consulted some the area's best mortgage advisers to help.
Many of you will have your own mortage adviser, or may want to consult a number of advisers to see what could be on offer for you and your situation. We've compiled our top tips to help you get the best from your mortgage adviser.
Step one - Do your homework
- Work out your monthly budget. You can do this by setting out your monthly take-home pay and then deducting all your expenditure, including regular credit commitments, bills, food and entertainment.
- www.which.co.uk have a handy calculator that can help you work out how much mortgage you will be able to afford.
- You also need to work out how this might change once you've got the mortgage. It also makes sense to check out the deals that are available yourself using one of the many mortgage comparison tools before going to see an adviser. Some of the best deals are now only available directly from the lender and not through mortgage advisers or brokers.
Step two - Keep track of the consultation
Make sure the adviser is doing everything they should. This should include the following during your consultation:
- An explanation of which level of service they are offering and giving you an initial disclosure document (IDD) saying this.
- Enquiry about your income, debt, expenditure and any likely future changes to these.
- Explaination of the deals and repayment methods available and advising which is most suitable.
- Discussion on the most suitable term and comparing overall repayment costs.
- A clear explanation of their recommendation and giving you a key facts illustration (KFI), which sets out details of the mortgage.
Step three - Make sure you understand what's recommended
Advisers should be able to give you good, clear reasons why they're recommending a particular mortgage deal. If your adviser doesn't do this, or you think the recommendation is not appropriate, tell them and get them to explain it again or in further detail.
Step four - If you've been badly advised, complain
If you think you've been badly advised and you think you've got a valid complaint, you should make a formal complaint. First go to the firm that advised you to see if it can offer a solution to the problem.
If it is unable to resolve your complaint satisfactorily within eight weeks, take your complaint to the Financial Ombudsman Service (0845 080 1800).