| |
|
|
|
The mortgage markets have many different types of lenders
that will offer their services and help you find the right
mortgage for your needs. When people buy their new property
often the estate agency will have an appointed mortgage
advisor that they recommend and many people will take up
this option, it however always pays to look around and make
sure you choose a suitable provider. For a lot of people the
first point of contact will be with the banks to arrange the
funding for their mortgage, many people choose to use the
bank that they are with for their other financial accounts
such as the current account or savings accounts. The
mortgage products that banks have available are varied and
will often vary in flexibility and mortgage interest rates.
Banks will broker a deal for a whole range of mortgages from
the standard fixed rate mortgage, variable rate and tracker mortgages
to the more recent and popular one account mortgages. It is
very easy to find the different mortgages, rates of interest
and terms and conditions of the banks services by either
going into a local branch or checking the individual
websites.
Using a Bank as Your Mortgage Lender
When you use a bank as your lender you will likely talk to
an in house broker these are known as loan officers. The
bank will employ and train the loan officer to understand
all of their products and services in order that they can
offer you the best mortgage for your requirements. Most of
the banks will offer a very wide and varied number of
packages to cater for a large number of requests. When you
talk to a specific bank you will be offered in house
mortgage products only, it pays to make sure that you shop
around to find the best deal and talk to many different
banks. All of the major banks now offer mortgages and you
can find all the information from the current mortgage rates and the additional charges on the bank websites.
Internet Lenders
It is now possible to arrange your mortgage through the
internet and many of the lenders allow you to process an
entire application through their websites. There are
specialist financial service providers who offer an
alternative option to the high street banks and building
societies. The same regulations apply and the companies must
be fully accredited to offer the mortgages and you can often
find the best mortgage rates by looking on the company
websites. Before you are offered any final mortgage you will
still need to undergo the financial checks, credit checks
and provide your financial information so they can make an
informed decision.
Mortgage Broker to find a Lender
The other very common way to get the best deal for your
mortgage is to instruct a mortgage broker. These are
property specialists that act as a go between for the
consumer while the mortgage is being setup. There are many
types of brokers that can be instructed and these are tied
brokers, multi tied brokers and independent mortgage
brokers. A tied broker is exactly as you would expect and is
affiliated with just one lender, in general it is likely
that they are employed by the lender that they represent and
will only offer mortgages that the lender provides. It is
often thought to be not a good idea to get a mortgage from a
tied broker as the product range will be limited and you
will not be able to see a wide and varied range of
mortgages. A multi tied broker would be considered as the
next level up from a tied broker, you will be getting a more
varied selection of products from different lenders. The
drawback again with this is the broker will often select the
products that best suite them, this could be in respect of
the amount of commission that they will be receiving on the
sale. It has become a much more common practice for many
banks and financial institutions to now become a multi tied
mortgage broker. The final type is the independent mortgage
broker, these are the most likely to enable you to get the
best deal for your mortgage. Generally an independent will
have a considerable amount of experience within the property
sector and arranging mortgages. Many will have worked for
some of the larger financial institutions and then made the
split and became established in their own right. They will
not show any biased towards a particular lender and you are
much more likely to receive a mortgage that suites you and
is tailored to your exact needs.
Regulation for Mortgage Lenders
With this sector being so diverse and the number of mortgage
lenders increasing over the years the financial services
authority made it compulsory for anyone selling mortgages to
be qualified in the field. The compulsory examination that
all mortgage providers need to have passed is the CEMAP
which is accredited by the QCA (Qualifications and
Curriculum Authority). The FSA are a government body that
have been setup to regulate the industry and the UK mortgage
sector is now very well controlled and this in turn will
provide the consumer with additional confidence when
arranging mortgages. The FSA has brought in a number of
initiatives which have helped to improve the market; these
include clear information on the different types of
mortgages which allows the buyer to clearly identify the
difference between the products. Clearer advertising of the
prices of arranging the mortgages and any advice given by a
lender must be based solely on the needs and circumstances
of the consumer and not on the commission.
All of the information above provides the buyer with
questions that should be addressed before you find the best
lender. The most important points are to ensure that the
lender has the correct qualifications; they are a member of
the governing body and have a good history of providing
mortgages that suite the buyers needs. There are hundreds of
lenders including banks and building societies that can be
used to finance your property and a good one will be able to
source the best deal for you. A mortgage is the biggest
financial commitment that many people will make in their
lives and bad advice at this stage could cost you thousands
of pounds in the long term. Do not be afraid to ask
questions and if you do not get the answers that satisfy you
then shop around and look for another lender. |
| |
|
| |
|
| |
|
|
