Sunday 16 May 2021

Is It Worth Using An IFA To Get A Better Mortgage Deal?

Buying a house is more stressful than bankruptcy, divorce or even bereavement, according to a recent poll. With prices rocketing and anxiety over interest rates, you need all the help you can get to successfully purchase a house.

Is It Worth Using An IFA To Get A Better Mortgage Deal?


Dealing with solicitors and signing paperwork, with fears that the deal could fall through, make house buying extremely traumatic. But first, you have the issue of getting a mortgage. Where do you go to find the best deal? Why not use an independent financial advisor who will have all the necessary knowledge and contacts to get you the best deal?

IFA – Pros

There are pros and cons for using an IFA. However, the advantages stack up quite well. They have knowledge of the market and know where all the best deals are. If you have irregular earnings, are looking for a bridging loan or trying to raise a mortgage on a second property with a view to paying the deposit on a first, these are all unusual circumstances which ordinarily you would not be able to sort out alone, but an experienced IFA will know which lenders are comfortable with unusual circumstances. They will be available to offer advice and be the go-between with the mortgage lender and guide you through the process. As they are known to a lot of mortgage lenders, they can often get better deals than the ordinary man on the street.

Is It Worth Using An IFA To Get A Better Mortgage Deal?

IFA – Cons

Be aware that some IFAs are tied to certain mortgage lenders so will not be searching the whole market, which means you may miss out on a great deal. Mortgage lenders such as HSBC and Firstdirect do not offer mortgages through dealers, so you may wish to investigate that avenue on your own. Also, avoid dealers who charge you commission, as this should be charged to the mortgage lender.

All the information is stored on software for financial advisors, and it is available at the click of a button, so there will be no delay in getting your best quotes. The software for financial advisors will help to narrow down the best options.

You’re best to go for a fee-free broker, and they may well try to sell you contents and building insurance, so get a quote but shop around.