Impartial Mortgage Advisers – A Must Have
The mortgage market remains a minefield for first-time buyers as funding issues continue to dominate lending as well as the availability of mortgage products. Affordability remains a key issue for prospective homeowners and with higher value loan-to-value deals being few and far between, stricter lending criteria prominent and hidden fee’s evident, the role of the impartial mortgage adviser has taken on even more importance than ever. In fact, it has NEVER been more important for people to seek impartial advice.
The overall mortgage market has changed significantly over the past two years and while it is fair to say that the role played by impartial mortgage advisers has changed slightly, they still continue to dominate the landscape of the market. The role of the impartial mortgage adviser has naturally had to change to acclimatise to the new economic conditions. Increasing numbers of mortgage lenders are now offering fewer products and in doing so are further challenging mortgage adviser territory by offering what may appear to consumers as better initial rates on direct to consumer deals – or ‘dual pricing’ as it is otherwise know. Essentially dual pricing means one rate for deals available through brokers and another rate for deals available direct from the lender through high street branches. But all may not be what it seems! What appears to be good value ‘direct’ deal at first sight may not be all it seems.
Home buying is still the largest financial commitment that the vast majority of people will undertake in their lifetime. This means that quality of advice remains of paramount importance to this process especially when lending criteria and mortgage products are increasingly complex. Some advisers are pointing customers towards direct deals and we can see this practice gaining ground as the mortgage adviser community adapts and evolves. These so called ‘direct’ deals can be very good value for consumers – although to jump in and choose one without advice may not make economic sense.
Mortgage advisers are still writing the majority of the business in the mortgage market albeit in a much smaller market than was enjoyed in the past. A recent survey showed that people really value impartial advice and that the benefits are beginning to be understood – especially since the credibility and trust once associated with the banks has taken a battering. With interest rates predicted to stay below 2% until 2012, this puts a question mark over whether consumers should be taking out fixed rate mortgages now or whether they’d be better to continue with trackers for a few years. The UK market for mortgages remains a complex area as funding issues continue and it has never been more important to know exactly what is required for the right mortgage deal to fit individual further underlines the importance of good quality advice provided by an impartial mortgage adviser who can help take away the uncertainty and provide great benefit in both the short and long term.
As with anything in life, finding such a precious commodity – after all they could save a first-time buyer hundreds of pounds in the short term and thousands of pounds in the long run – can be challenging.