Speaking to a mortgage adviser
When you’re buying a home through Help to Buy, it’s key that you speak to a qualified new home mortgage advisor. Remember that the Government loan is available for up to 20% of the purchase price of the property in England and up to 40% in London. For those living outside England, there are alternative schemes for Scotland and Wales. With a 5% deposit in place, you’ll need to secure a mortgage for the remainder of the purchase – 75% or 55% for those in London.
A mortgage adviser will help you understand the best route to take based on your individual financial circumstances. They’ll analyse your monthly incomings and outgoings and assess what you can afford. They will assist you with securing a mortgage as well as completing the Property Information Form (PIF) as part of the Help to Buy application process. Their advice will be vital from the early stages of the search and application.
When speaking to a financial adviser make sure you ask them the following questions:
Do you advise on mortgages from across the market?
An adviser who covers the whole market and will be able to advise you on all your options.
If for example they’retied into advising on mortgages from specific lenders this will narrow your search and could mean you’re not getting the full picture or the best advice for your circumstances.
What are your qualifications?
Your adviser must have qualifications from the Financial Conduct Authority.
Look out for the Certificate in Mortgage Advice & Practice (CeMap).
Why is this the best solution for me?
As well as understanding whether your adviser is qualified to advise you, you’ll also want to make sure that any solutions they detail are the best for your circumstances.
If anything is recommended, don’t be afraid to question it and only proceed if you’re completely happy with their explanation.
What will I be required to pay to a new home mortgage advisor?
New home mortgage advisers receive a fee from the lender they place your mortgage with. This has no impact on what you pay for a mortgage, although some advisors may charge a fee for their services. You should always ask your adviser if they do from the outset.
When sorting your mortgage, you should find out exactly what you’ll need to pay and when. This includes upfront costs like your deposit, stamp duty, valuation and legal fees. You’ll need to recognise your ongoing payments too, including your monthly mortgage and Equity Loan repayment fees.
You’ll want to have the entire picture fully detailed before proceeding.
This guide to mortgages was produced in collaboration with L&C Mortgages, the UK’s largest fee free mortgage broker and adviser.