You are looking to move, remortgage or maybe buy an investment property in Barnstaple and you need a mortgage to do it! The question is, what does a mortgage broker in Barnstaple do that you can’t? Why can’t you just go to a bank and avoid paying for their services, particularly when there are potentially loads of other costs? Read on to find out the inside scoop on the good, the bad and the ugly!
Working with a Barnstaple Mortgage Broker means you are protected
Okay, we might not be this hunky! Click To Tweet But an important thing to understand is that when you receive advice, your mortgage broker in Barnstaple has a duty of care to you both morally and more importantly, legally through the very tight regulations set out by the Financial Conduct Authority (FCA). If their advice is not up to scratch you can complain and be compensated.
When it comes to getting a regulated mortgage (residential and some more niche regulated lending – sorry for the technical jargon but it’s important you know!) A firm must recommend the best mortgage and be able to justify why the particular deal was recommended to you. Just in the same way a doctor has to recommend the best medicine.
All of this has to be evidenced and at Barr Financial as part of our drive for more transparency in our industry, where we once gave clients the standard documents required by our regulator i.e. quotes and our recommendation letter. We now go much further and also give all our clients the research document that we produce which goes into the granular detail of how we got to our recommendation with workings out’s, notes etc. Interestingly, these additional documents have always been part of our internal process to evidence the correct advice, but now we are going a step further to show and demonstrate this in a transparent way.
How Barnstaple mortgage advisers treat customers fairly
The FCA regulates the financial services industry which includes banks, financial advisors, mortgage advisors and others. It is an incredibly rigorous and robust regulatory framework we all have to comply with. At its heart, it is trying to ensure all regulated firms are “treating customers fairly” which has to be demonstrated and evidenced through every aspect of their business.
This is, of course, great and hopefully demonstrates our industry is doing everything possible to put clients front and centre of everything we do. Believe it or not, this is a lot more than just words as we have to implement how we achieve this through our whole business model, which will include things from the way we recruit, our continuous professional development (CPD), the advice we give, plus much more!
There is no doubt the compliance and regulations are very onerous, thorough and complex. Not many industries are so tightly regulated, which is both good and bad. Click To Tweet Good in so much as you (the consumer) are incredibly well protected from bad advice and shady practices. And thankfully, tough regulation has driven out most of the bad apples in our industry, which no one wants as it only serves to drag down those professionals who are doing a great job for their clients.
It is very easy for someone to say (as indeed we do) that we will always do the best for a client (which we will). The challenge as I’m sure you know is that some people will still say this, but won’t actually do it, and so regulation is there to ensure it is done. Which fundamentally is a good thing, it just costs a business more to operate in this environment.
However, don't assume all mortgage advisers adhere to the same regulatory framework. Click To Tweet Some firms and advisors only specialise in non-regulated advice which tends to be for some types of buy to let, and other investment type mortgages, such as bridging loans and development finance.
This is fine, however, be aware you don’t have the same consumer protection as if it was a mortgage for your home. Secondly, firms or indeed advisers who only do these types of unregulated mortgages, might not be qualified! It’s hard to believe right? But it’s true.
Barnstaple Mortgage Advisers are qualified professionals
There’s an awful lot to choosing the right deal. It’s not as simple as just looking at a table and finding the cheapest fixed or tracker rate! Although you could be one of the few lucky ones where it is, usually lending criteria has a huge part to play as well. Get it wrong and the difference could mean it costs you thousands of pounds and you might not even realise it!
Remember a mortgage is usually someone’s biggest debt they are ever likely to have, so it is critical you get it right. A helpful way of ensuring you get it right is the fact that a regulated independent mortgage advisor has to be professionally qualified to give you advice. Using a Barnstaple advisor is not just about getting them to find the cheapest deal, but it's also them advising you of what to do, how to do it and then which is the best mortgage option for you. Click To Tweet
Why would you only consider one or even two lenders, instead of looking at all, particularly when it’s your biggest debt? The truth is, more and more people are seeking out the services of professional independent mortgage brokers in Barnstaple. Current statistics for the UK show about 70% of all mortgages are now done through independent professionals. This may in part be due to the fact lending criteria is getting tighter and consumers are preferring to seek help from professionals who are able to not only find the cheapest deals but who are also able to navigate the complexities of tough lending criteria. Don’t forget every single lender has different rules across just about everything!
A Barnstaple mortgage broker is on your side
An independent mortgage broker in Barnstaple will look for the best deal for you. They aren't on the lender's side, they're on yours! Click To Tweet If you are looking to get finance for a property in Barnstaple and you are considering using someone independent, it’s really important you know that they are on your side.
I know we work in the financial services industry, but we aren’t at all like the banks (honestly, we’re not). As advisors (and I’m sure I can speak on behalf of all good advisors in Barnstaple) we only ever want to do what’s right, work well with clients and get them the outcomes they want.
As a local company, we are certainly not a big corporate body but a local firm with individuals wanting to build a good reputation by providing great advice, and good service for our clients, just like most small businesses. And the point is, each and every client is important to an advisor. We all love working with clients who we get on well with and who trust us to help them. I’ve said this many times before, but we want clients to feel like we are part of their team. When this happens and we all trust and work together well, it really does create a winning formula for clients.
Barnstaple Morgage Brokers – they know the mortgage world!
As briefly mentioned earlier, lending criteria has tightened massively in recent years, particularly following the financial crash and the mortgage market review (MMR). More than ever, it is a compelling reason to use a broker as they are working with lenders on a day-to-day basis.
They know the background criteria that a lender has and can bring this experience to bear when advising you and processing your application. Click To Tweet Because a broker might put a lot of business to lenders in a year, they can exert influence and chase things in a way you just can’t do by yourself. They also know who to speak to when things go wrong or become tricky.
The mortgage shouldn’t be the only thing you care about!
A broker won’t just advise you about your financial arrangements. They will also look at any related life insurance, critical illness cover, income protection and even buildings and contents insurance you have.I know what you are thinking...here comes the sell!! Click To Tweet
Just to share with you, and unlike some, we don’t push things down peoples throats, we are here to help. If you want our advice, great, if not no problem but at least you are aware of your options. A good adviser will recommend insurance based on your financial situation to make sure you are fully protected in the event of the unexpected! Then it’s down to you to listen or not.
Should you love to pay for a Barnstaple Mortgage Broker?
We understand there are a lot of costs involved with getting a mortgage and paying for independent advice isn’t for everyone. It's tempting to try and circumnavigate this by getting a mortgage directly with a bank to avoid this, and that's okay. Click To Tweet
However, advice tailored to your situation can not only help you in the long term but the short term too. And let’s be honest most people tend to make short term decisions based on what is in front of them right now. So when it comes to short term benefits, it’s simple: An independent advisor HAS to recommend the cheapest mortgage available to you in the market. It’s a bit like a doctor HAS to recommend the right medicine to you, I know it’s an odd analogy, but it’s true.
Off course, you can get a DIY mortgage. But the chances of you stumbling upon the cheapest deal by speaking to one or two banks is highly unlikely (not impossible). Click To Tweet This means the probability of you actually spending more by getting a more expensive mortgage than you could otherwise get, is very high. Trust me getting a mortgage is not a straightforward process. It’s hard for mortgage professionals doing it day in day out, let alone someone occasionally doing their own!
So the price you pay for their services is often more than outweighed by the savings you will make. And that’s not taking into account the service they are providing you by helping you get the mortgage by doing all the hard work for you or helping you buy that property by liaising with estate agents and solicitors.
Of course, you can look to save a few hundred pounds by doing it yourself. The critical question is whether you see value in the service or will save more money by getting them to help you. If you do, then it’s worth it, and if you don’t, that’s fine too.
The value of advice in Barnstaple
Arranging finance is a lot more difficult than it may first appear. Knowing what rate, what term, what lender, what features, what insurance are all time-consuming and complex matters.
Comparing finance on a site like moneyfacts.co.uk is a good place to start – it’s great to get an idea of what’s out there. But choosing a deal is a process far more complicated than simply the lowest rate or the best incentives. A broker takes your whole circumstances into account to recommend a suitable product that's right for you. Click To Tweet And it’s that thorough, professional look at your finances that makes advice well worth paying for where ever you live – not just in Barnstaple!
If you want to find a mortgage broker in Barnstaple then feel free to get in touch or just ask a question below: What’s your experience of trying to get a mortgage in Barnstaple, share your thoughts and experiences in the comments section below!