What will the adviser do for me?
Getting advice from an independent mortgage adviser
A mortgage could be the biggest financial commitment you’ll ever make. So it pays to get advice from a qualified professional. Usually, that person is a whole of market mortgage adviser.
Like IFAs, mortgage advisers are regulated, which means that they have to hold qualifications to confirm their level of expertise. The advice they give must also conform to rules set down by the Financial Services Authority. There are two types of mortgage adviser – an independent mortgage adviser, and a tied mortgage adviser.
- An independent mortgage adviser can offer products from many providers, but may not have access to some ‘own product’ options. High street banks, for example, don’t release details of their whole product range to independent brokers.
- A tied mortgage adviser – someone that you’d approach through a bank, building society or estate agent may only offer products from the mortgage lender they’re tied to. If you arrange to speak with a mortgage adviser through your bank, for example, you’re likely to be dealing with a tied mortgage adviser.
It’s important to understand which type of adviser is helping you, so that you’re comfortable with the number and type of options you’re shown.
When you first meet, you’ll probably want to talk about getting a mortgage straight away. You may even have found a house – so mortgages will be your top priority. Your mortgage adviser will probably ask you questions about a wide range of subjects, to find out about your circumstances, your finances, and the house you’d like to buy. This helps the adviser understand how much you can afford to pay, both as a deposit, and as regular payments to a lender. It’s known as a Fact Find, and it can help identify other areas in which you may need advice – with things like building and contents and life insurance.
The adviser should always offer you products that are within your level of affordability, and you’ll be asked to confirm that you understand the responsibilities and commitment you’re taking on. It’s a good opportunity to explore the benefits of these products, as independent mortgage advisers may have access to deals that are not available through comparison websites or on the high street.
When you’ve chosen a mortgage, the adviser will make an application to the lender using your details. Once accepted, the adviser will usually liaise with the solicitors, estate agents, and lenders on your behalf – right up until you exchange contracts on the property and finally complete your purchase.
New leases
If the transaction involves the purchase of a new lease with a substantial rent there may be an additional SDLT charge to that shown below, based on the rent. See the next section and further table 'SDLT on rent for new leasehold properties (residential)' for more detail.
Residential land or property SDLT rates and thresholds
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Up to £125,000
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Zero
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Zero
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Over £125,000 to £250,000
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1%
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Zero
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Over £250,000 to £500,000
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3%
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3%
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Over £500,000 to £1 million
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4%
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4%
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Over £1 million
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5%
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5%
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If the value is above the payment threshold, SDLT is charged at the appropriate rate on the whole of the amount paid. For example, a house bought for £130,000 (by someone who is not a first-time buyer) is charged at 1 per cent, so £1,300 must be paid in SDLT. A house bought for £350,000 is charged at 3 per cent, so SDLT of £10,500 is payable.
First time buyers
The first time buyer's £250,000 threshold applies from 25 March 2010 up to 24 March 2012 inclusive.
£1 million threshold for wholly residential property
From 6 April 2011 SDLT on residential properties over £1 million is charged at 5%. It does not apply to non-residential or mixed-use properties.
There are some transitional arrangements for contracts which were entered into before 25 March 2010 but not completed by 6 April 2011 in most of these cases the new rate will not apply.
We can offer instant decisions in principle in minutes and mortgage offers within hours through use of state of the art technology and software developed by the leading banks.
We offer mortgages from all of the high street banks, Private Banks and Building societies as well as specialist lenders.
See our link to: Areas of advice for a full list of lending terms.
Call us now on 0845 230 9091 or simply complete the online enquiry form and we will get back to you. Alternatively email enquiries@avenue-pf.com
We look forward to your call.
COST OF ADVICE
As independent advisers, you can choose how we are paid. We usually charge an administration fee of £350 when a full mortgage application is submitted to the lender. We may on completion receive a commission from the lender. Alternatively, you can pay us a a fee of 0.35% of the loan and we will refund any commission back to you that we receive.
We adhere to the principles of treating customers fairly and if we do charge you a fee, we will put in writing to you details of any fees before commencing any work.
Your property may be repossessed if you do not keep up repayments on your mortgage.
For Right to Buy loans the overall cost of comparison is 5.7% APR. The actual rate available will depend on your circumstances. Ask for a personalised illustration. This APR is based on those with a clean credit history.
Commercial Mortgages are not regulated by the FSA or arranged via Sesame Ltd.