The Advantages of Using a Mortgage Adviser Who Isn’t a Bank

Different kinds of mortgage advice
So, what are the various kinds of mortgage advice and where can you find them?
This type of mortgage broker provides the least amount of consumer protection; they will simply ask a series of questions to narrow the customer’s needs, thereby reducing the number of mortgages available. You may want to check out more info here.

They then present the customer with a short list of possible mortgages from which he or she can select the most suitable. The consumer protection here is based on the broker’s script of questions. The script is an impersonal process that is determined prior to the consumer appointment. As a result, it’s unlikely that specific personal circumstances will be considered. It also assumes that the customers’ responses are factually correct and that the consumer makes the final decision alone. Although no advice is given, these brokers handle the mortgage application on behalf of the customer, taking care of all the chasing and removing the stress from the process.
Where would you expect to find non-advised brokers?
Many non-advised brokers work for high-street banks and building societies, believe it or not.
Advisory only
This type of service involves a mortgage adviser applying their knowledge and skills to find the best mortgage for a customer’s specific needs. This will include a complete fact-finding interview, an affordability evaluation, and a review of the consumer’s potential plans and desires, all of which will provide crucial information about the consumer’s needs, allowing the advisor to identify appropriate items. The adviser, on the other hand, will not manage the mortgage arrangement; the borrower will have to negotiate directly with the bank or building society to do so.
Where would you expect to find advice-only advisers?
These advisors seldom work alone, and their services are often provided via the ‘Independent Mortgage Advisor’ form mentioned below. And it frequently occurs when the best mortgage is only available on the high street (rather than by mortgage advisors or brokers). As a result, the advisor will give the client an advice-only alternative and charge a fee for it. Despite the fact that the customer must negotiate directly with the bank or building society, the consumer’s mortgage advisor is also able to assist them.
Mortgage brokers that are entangled
Tied mortgage advisers are classified as either single-tied (only offering mortgages from one lender or its own) or multi-tied (only offering mortgages from a small number of lenders). This significantly reduces the amount of mortgage products available to fit a consumer’s personal circumstances, and in many instances, they will not be able to provide the most appropriate mortgage product, resulting in advice resulting in the best mortgage they may provide being woefully inadequate.
Where do you think you’d find tethered mortgage advisers?
Branches on the main street. When a customer visits their local building society branch, the in-house mortgage adviser may only sell the building society’s mortgage items. There is a significant reduction in consumer preference and mortgage product suitability. Furthermore, high street branches often use low mortgage rates/fees as a loss leader (marketing term for attracting new customers) before attempting to sell their associated insurance policies, which are often woefully ineffective and expensive.