IFAs/Mortgage Brokers.

How many types are there?

There are three types of IFAs/Mortgage Broker:

• There are those who are tied to specific lenders, which mean that they will only recommend specific mortgages. This type will usually charge commission on the mortgage rather than an upfront fee.

• There are the Multi Tied who recommend lenders from a "panel or selection which represents a limited section of the entire market. They can still claim to be "whole of the market" brokers, as long as the panel on offer is representative of all lenders.

• Then there are also independents, which are not tied to any lenders. They can recommend lenders from the whole of the Market. This means they are in a better position to offer genuinely impartial advice, although the advantage of tied brokers is sometimes that they have a limited range of products to offer, they may have better deals on them" Whole of the market" mortgage brokers usually charge a flat fee.

How Much will they Charge for their services?

Whether they are Tied, Multi Tied or independent there will always be a charge for your adviser's advice.

• Fee only advice which varies from £50 to £200 per hour. Often the first half an hour if free at the initial meeting.

• Paying indirectly through commission, this is deducted by the product provider from the products that you may take out. There may also be an annual commission on top of this known as trail commission.

• You can also pay by a combination of fees and commission. The adviser will rebate back into the financial products or hand you some or all of the commission or offset it against the fee.

Everyone can opt to pay their IFA/Broker by a fee rather than commission

WARNING: - always ask what the fee will be before instructing an IFA or Mortgage Broker.

At what stage in the home buying process do I need the services of a Financial Adviser/Mortgage broker?

• At the early stages of the process you should have an initial meeting to assess how much you can borrow.

• You will find it very helpful to get a mortgage in principal. This will speed up the process once you have selected a suitable property.

What do I look for in a Financial Advisor/Mortgage Broker.

• You want advice on the whole range of products available rather than a limited number of financial products or provider companies.

• You want your adviser to be independent of any commercial relationships, which may restrict the advice they give.

• You should look for someone with advance qualifications particularly in the sector you are seeking advice.

• Look for a financial adviser who comes recommended.

• Ask them for customer accreditation.

• Select an adviser with whom you feel comfortable with especially as you will need to share a certain amount of personal information with them.

• Click here to view a selection of IFAs and Mortgage Brokers from our providers directory.