If you read our last blog article, you’ll have noticed that we mentioned a difference between Independent Mortgage Advisers and Tied Mortgage Advisers – both sound very similar, however their offering is hugely different from each other and can end up being very costly to you if you choose the wrong advice.
Within this post, we will break down the jargon and explain what each can offer you, if you are seeking financial advice regarding your mortgage and insurances.
So, what is a Tied Adviser?
A lot can be taken from the name – a Tied Adviser is either employed directly by a bank or building society and therefore ‘tied’ to one company, or they may be an adviser who is based within a large corporate estate agents that are limited to a panel of lenders and one insurer.
Monthly insurance premiums for life, critical illness, income protection etc.… can be up to 35% more expensive through a tied adviser compared to an independent adviser.
A tied adviser should always declare their affiliation to the company that they work for and explain that they will only be able to provide advice and guidance about their own or a limited range of interest rates and products. Unfortunately, this isn’t always the case!
This can limit any possible alternative products which may be more suitable for you, as the adviser will be unable to discuss this with you. Remember, each mortgage lender will lend different amounts, and it can vary by as much as £100,000 so it is very important to explore other options.
Now what is the difference with going to an Independent Mortgage Adviser?
Simply put, an Independent Mortgage Adviser is exactly that – independent and not tied to any networks, panels or banks.
What they can offer you is interest rates and products from the Whole of the Market. You can confirm this by asking for the adviser’s IDD (Initial Disclosure Document), Terms of Business and Key Facts. Please note that occasionally advisers claim to be fully independent but are actually tied to a network or panel of lenders; at least this way you can rest assured they’re correct in what they’ve informed you.
Independent advisers (like ourselves!) are unbiased and can recommend exclusive products and rates that fit your circumstances. We act on your behalf to find the best lender and insurer to suit your needs, whether it is based on the most suitable interest rate for a purchase or remortgage, which lender is offering a large cashback, free survey, free solicitors or who is purely willing to lend the amount of money that you need to borrow to buy your dream home. In some instances, the savings on insurance premiums can be up to 35%.
Discussing your finances can be one of the most difficult conversations that you can have – so it’s important to speak to an independent adviser who is open, honest and someone you can trust.
Our initial consultations are free of charge and we will make sure that you are aware of all costs involved in buying and selling from the first conversation that we would have with you, to ensure that there are no hidden surprises.
Speak to a member of our friendly team today for truly independent advice on 0808 196 1000.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXSISTING LENDER IF YOU RE-MORTGAGE.
A BROKER FEE MAY BE PAYABLE UPON MORTGAGE APPLICATION AS WELL AS AN ADMINISTRATION FEE. THE TOTAL FEE PAYABLE WILL DEPEND ON YOUR CIRCUMSTANCES. YOUR MORTGAGE CONSULTANT WILL EXPLAIN ANY FEES APPLICABLE IN YOUR INITIAL APPOINTMENT.