How do you buy a house? Do you try a few mortgage advisors or is that cheeky?

[pompomseverywhere]

I'm a first time buyer and I wanted to ask about using a mortgage advisor.

Can I contact more than one mortgage advisor to see what they can do for us.

We don't pay anyone until we go for a decision in principle but it's feels a bit sneaky to get a few working on it for us at the same time.

Equally it seems crazy to not shop around when it's such a massive commitment and costs.

If you choose a whole of market broker (rather than one tied to one or a few lenders) they will probably have access to the same deals ast the others anyway.

There is no harm speaking to a few to get a feel for them etc before choosing but I don't think it woukd be right to get more than one working on applications for you.

After you've spoken to one and spent hours going through your personal details it's not likely you will have the time or energy to do again let alone a 3rd time.

I viewed using a mortgage advisor in itself as shopping around - ours gave us a list of about 20 different options with different lenders.

Imo, yes, it's cheeky.
Imo, you should choose which MA you'd prefer to go with before going any further looking for a home. Most of them have access to the same systems for finding mortgages, so it's really all down to how much they charge, how you feel about them personally, their reputation, and any other extras they include in their service.

The majority that I've seen work on the principle that they don't charge upfront for the initial meeting with you, doing starter checks, gathering all your info, affordability checks, deposit checks, guiding you on what mortgage amount you'd be looking at getting up to etc.
And so only actually charge you when officially starting the mortgage application with you after you've viewed a house and successfully bid/won it.
So imo, getting multiple MA's to go through all starting paperwork with you, although not illegal, would be cheeky, and a waste of time for both them and yourself.

A mortgage advisor has to put a great deal of effort into advising you due to the huge number of compliance requirements they have to meet. They are also, generally, self employed. So I would feel it very unfair of you to waste their time.

If you expect them all to start the application process, this will be flagged as they will probably all be approaching the same lenders to discuss your requirements. This could hinder your chances of being offered a mortgage, especially if they run any credit checks on you. It could also affect their relationship with the lenders.

Get a recommendation from a friend or relative of who they used. Failing that, look on sites such as Vouched For.

I am also going to go against the MN trend and say do not be put off by brokers who charge a fee - the one I use is worth his fee 20 times over for how much he has saved me. They want to retain your future business, mine doesn't advertise as he is too busy with all the referrals he gets from us happy customers.

I expect they mostly have access to the same deals anyway so it'd be wasting your time as well as theirs. It's not like the mortgage companies will give Mark's clients a better deal than John's clients if all other circumstances are the same.

Thanks for all the advice and insights

Before choosing or speaking to any MAs, I would encourage you to read up on the process and options, so that you are reasonably informed.

Hearing new information from an advisor is quite difficult. If you have some idea before hand, you will find it much easier to listen to information which should then be reasonably familiar.

Some good sites include the which guide (probably available in your local library, just check it is up to date. https://www.moneysavingexpert.com is also good.

The important thing is to understand how the advisor is paid, do they get commission and if so, is it different on different products they might offer you. You really don't want to be recommended a product which is not ideal for you.

Which ever deal they recommend, I would contact the providers to check whether the same deal is available direct.

Good luck.

Most will have access to the same deals.

Go with someone who has access to the whole market. I have met with mortgage advisors in the past who only had limited access to the market, so never went with them following a brief introduction.

Also, there are many who won't charge you for their services. They simply take commission from the lender that you go with. Mine only took commission so I didn't have to pay anything to use him. Sorted me out a fantastic mortgage with HSBC.

Mine only took commission

I much prefer to pay upfront for any advice. It might seem easier when things are tight to not have another payment to find.

When you find out just how much commission they get over the lifetime of the mortgage, you can compare whether you think it is good value. And perhaps be ready for it if you ever buy again.

@FinallyHere Mortgage advisers that charge the client directly get the commission from the lender in addition to this fee. The mortgage products are exactly the same, the same commission is paid (upon completion of the mortgage, not "over the lifetime of it") and should be detailed in the KFI document provided by the broker.
The lender doesn't care a jot whether the broker is getting paid by them and the client or just by them.

I keep reading about London and Country on here.

Maybe worth using instead of dealing with an individual MA?

I will always wave the flag for smaller and local...just like I buy my books from the bookshop in town not Amazon. Please consider that, posters! The few companies I would recommend from my local town support local teams, donate prizes for school raffles..

Why do you think you need a mortgage adviser? Are you self employed or do you really need to max out what you can borrow (which isn't a good idea at the moment!). We have always done an online search ourselves for current deals, but then we are both employed and no extra income so relatively simple.

Best to be recommended, ideally by someone in similar circumstances as you.

Many mortgages are only available through intermediaries, ie a mortgage advisor, these are often some of the best deals. As an individual, you can't access these deals. They also do all the paperwork as well as give advice and do any chasing up with the solicitors and estate agents as necessary. As long as it's a whole of market advisor (some aren't), it'd be shortsighted and potentially costly to not use one.

Note: I am not a mortgage advisor, not anything mortgage related!

Yes, there might be a better deal out there, but paying an upfront fee to access something that is just marginally better isn't worth it if you have a small mortgage. Its not necessarily worth paying out for a mortgage adviser if your situation isn't complicated and you aren't borrowing very much.