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Frequently Asked Questions
Ten
questions you should always ask a Broker/Adviser
1) How Independent are you?
Many brokers that describe themselves as independent will actually
work from a panel of different providers that are representative
of the market. Truly independent mortgage brokers that can deal
with any lender will therefore often describe themselves as 'whole
of market'. EMC² Logical Finance Ltd offer access to the
whole of the market place.
2) Which lenders' products can you offer me?
If a panel is being used, find out how many lenders are on it.
Anything less than 10 is no good. Larger panels should be sufficient
for most borrowers, and, in many cases, lenders may offer preferential
service to the broker.
It's worth asking whole of market advisors how many different
lenders they have used in the past year. Around 70 is a reasonable
answer. EMC² offer access to every lender on the market,
and we will ensure that the lender we choose for you is the most
suitable, appropriate and affordable according to your individual
circumstances.
3) What level of service do you provide?
Before you commit to a broker, get them to talk you through the
process from start to finish, and find out whether they will
make an actual recommendation or only provide information. EMC² offer
the most comprehensive service helping you through the application
process right the way through to completion.
4) How do you operate?
Mortgage advisors operate over the phone and face-to-face. Both
work well, so your choice will ultimately come down to personal
preference. The important point is that they are easy to get
hold of and that you understand their advice. EMC² prefer
to meet clients face-to-face, but can make arrangements over
the phone should the need arise.
5) Are you regulated by the Financial Services Authority (FSA)?
When you buy a mortgage with advice, the FSA states that you
have a right to expect the advisor to only recommend products
and services that are suitable for you. If the recommendation
is unsuitable, based on the information you provide, you can
complain to the firm and expect compensation for any loss.
Reputable advisors should declare this straightaway. However,
if you are unsure, check on the FSA's mortgage website. We explain
EMC² is directly authorized by the FSA and fully explain
all our services, including compensation by way of an Initial
Disclosure Document (IDD), required by law, before we start.
6) How will you be paid?
Some mortgage advisors will charge a fee for their service -
typically, around 1-3 per cent of the sum you are borrowing.
Others don't charge you at all and are instead paid a commission
by the lender whose mortgage you buy. Some borrowers prefer to
pay a fee as it means there's no incentive for advisors to push
loans paying the highest commissions.
However, following the introduction of tighter rules surrounding
the sale of mortgages and steep penalties for those that break
them, borrowers should not feel unduly concerned about using
commission-earning advisors. EMC² offer all our clients
the option of how we get paid.
7) What other services can you offer me?
A good advisor will recommend protection such as life cover and
home insurance when you take out a mortgage, because it's important
to be adequately coverer.
But it's not uncommon for a broker to be whole of market in terms
of the mortgage providers they use, but tied to recommend one
particular provider for other services. We at EMC² made
the decision to be whole of market for both mortgages and insurance,
to give our clients the best options.
8) What can you offer me that a lender can't?
This question may stump some mortgage advisors, but ultimately
there are distinct benefits of using a broker over going direct
to the lender. These include impartial advice, access to the
most suitable and competitive deals on the market, and assistance
through the application process and beyond.
Advisors will also often negotiate special deals which wouldn't
be available direct from the lender, and your legal or valuation
fees could be refunded too. By using EMC² you will be offered
access to the best deals available on the market, and ultimately
the most suitable, according to your individual needs. By law
we act on YOUR behalf. By law an advisor within a bank acts on
THE BANK’s behalf. EMC² act in your best interest.
9) Why are you offering me this product?
This question shouldn't really need to be asked - if the advisor
has listened to you requirements, the recommended mortgage should
clearly reflect this. Brokers are required by law to give written
confirmation explaining their proposal, but it's always worth
asking them to talk you through their reasons first, just to
check they have understood your needs. We at EMC² will only
offer advice and recommendations once we have assessed your individual
needs.
10) What next?
So you've listened to their advice and taken out a mortgage,
but this doesn't mean the end of the relationship with your mortgage
advisor. The service will often be a one-off, but many advisors
will offer ongoing support and get in touch with you when your
special rate expires and you're due to re-mortgage. We have made
the decision at EMC² that we will be in touch with our clients
at least twice a year, to ensure our recommendations are up-to-date,
and will ensure that we make suitable arrangements for when special
rates expire or re-mortgages are due. |
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