Getting a mortgage direct
You’ll need to do plenty of shopping around to make sure you’re getting the best deal available. It’s far too time-consuming to visit each bank and building society and you’ll only gain a limited, not to mention biased, impression of what they have to offer.
Going online, or picking up the phone, are the best ways to find out what the market has to offer.
Going through an IFA
An IFA is a personal financial specialist who deals with everything from mortgages to pensions and investments. Many specialise in a particular area, so make sure that any IFA you approach has proven expertise in mortgages.
The first meeting with your IFA is usually free, following that there’ll be an hourly charge of £30 to £100 (plus VAT). Sometimes you can negotiate that your IFA receives commission from the deal instead. Any commission earned will come from the company whose products they’ve recommended, and the amount has to be declared.
If you agree to pay commission, your mortgage broker’s advice may be influenced by the amount they’ll receive from that particular lender. In order to receive truly independent advice, it’s advisable to agree a fee upfront instead.
How to check up on an IFA
The Financial Services Authority strongly regulate IFA’s and register all who are qualified.
Call their Consumer Helpline on 0845 606 1234 to find out what qualifications your IFA has and what type of advice she / he’s allowed to give you.
If you have a complaint about an IFA, contact the FSA on 0845 606 1234
