People take out many different types of loan, for varying purposes; to buy their first car, go on holiday or, for a large portion of the population, to buy a house. A mortgage is probably the most significant loan a person will ever take out, mainly due to the amount borrowed and the lengthy term to repay. There are many types of mortgage available, so much so that it can be extremely confusing, especially for first-time buyers.

Do home buyers need professional help?

As there are so many products available on the market, property buyers often require some professional guidance. A mortgage advisor is often one of the first people to be approached for some advice. As clients rely on you for help and support during this potentially stressful period in their life, it is crucial that you are properly qualified to be able to offer the most suitable advice. Mortgage advisors are required to take the CeMAP training before sitting an exam, to demonstrate understanding and knowledge.

Risks of not obtaining mortgage advice

Clients don’t have to seek advice from a mortgage advisor; they can search the market and decide which product is most suitable for them. However, without the knowledge of a professionally qualified individual, property buyers are at risk of selecting the wrong mortgage for their needs, which could have a disastrous effect in the long term. A lack of professional knowledge could even lead to being rejected for a mortgage, which could mean losing out on a potential future home.

What will a mortgage advisor do?

A mortgage advisor has in-depth knowledge of the products that are on the market at any time, and which products will be most suitable for someone buying a property. People who want a mortgage all have different backgrounds and circumstances, all of which can affect the type of loan, interest paid and the term of the mortgage.

An advisor will assess what level of repayment a client can comfortably make each month. This may mean that a client has to provide details of income and outgoings, including existing loans and expenditure. Once the facts are obtained, the mortgage advisor will provide a Key Facts Illustration, which will outline the reasons behind the recommended mortgage. The Key Facts will explain the mortgage and help a client to make their final decision.

A mortgage advisor has a crucial role in the property buying process, which is why it is necessary to be suitably qualified and informed.

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