Just as there are many types of mortgages and mortgage deals to choose from, there are also many sources where you can go to get a mortgage. Your key choices are to use a mortgage broker, a more general financial adviser, or shop around yourself and go direct to
mortgage lender. For many people, choosing a lender means finding a mortgage company offering lowest APR rate. If you decide to use an adviser you can choose between a specialist mortgage broker and a general financial adviser. A general adviser will look at all your financial affairs if you want, not just your mortgage. As opposed to lenders who can only offer their own products, an adviser can look at whole market for you and consider mortgages from a number of lenders. Advisers can also offer you advice and information tailored to your needs. In UK, All firms or Individuals arranging or advising on mortgages must be authorised to do so by Financial Services Authority (FSA). If you are unhappy with advice from an authorised firm you usually have right to complain and may be able to claim compensation.
As an alternative to using a financial adviser, you can arrange a mortgage directly with a lender – like a building society, bank or specialist mortgage company. A lender will only recommend their own mortgage products although they may have several you can choose from.
When choosing a lender, you should consider competitiveness of lender’s rates, their fees and penalties, their customer service and their reputation. You’ll also want a lender you can trust, and someone you can work with effectively. Remember you’ll have to deal with this company for many years to come.
1. Building Societies Building societies are mortgage experts, they offer specialist advice and they usually offer very competitive rates. Many national ones have a branch in most major towns and cities while smaller ones tend to specialise in catering for home buyers in particular areas. For example, Cambridge Building Society specializes in helping people who live in Cambridgeshire.
2. High Street Banks Banks usually have years of lending experience and they have more branches and greater coverage across United Kingdom. Their standard rates tend to be higher than those of building societies but they often offer best introductory offers on mortgage deals. Some of big banks now have special arrangements with building societies where building society is one that handles all mortgage business for bank.
