Independent Mortgage Broker

What Does an Independent Mortgage Broker Do?

Even during this credit crunch time and the so called financial crisis that has hit the mortgage and housing markets throughout the word, deciding how to afford and pay for either a first home or another in the run up the housing ladder is very rarely an easy one.

Unlike a personal loan where all you have to worry about is how much you pay a month and how much interest above your loan amount you are paying, mortgages come with far more strings attached that if not fully understood could catch up with us one day.

The independent mortgage broker should be employed to fully explain to benefits and the conditions of all mortgages available at that time, so that anyone about to commit say 25 years of their lives, gets something that will work for them right through out that timescale.

An independent mortgage broker will normally make his or her fees for this support and advice from the commission off the mortgage once a potential house buyer has decided which home loan is right for them. But it is not as simple as recommending a mortgage then getting the commission, the independent mortgage adviser has to prove to you why he has recommended or suggested that particular mortgage, normally in a long letter, which show the facts and figures and clearly spell out any conditions, so that the new home buyer is fully aware, but also to protect that independent mortgage adviser for any come back. It is important this information is correct, because in many cases that independent mortgage adviser is tied to that home lender for the duration of that mortgage, even if it is 25 years or so.

Being independent means they should have no ties with any mortgage lender but just as important must have no ties with any insurance company also, so that all advice is exactly what that client needs and can get the whole package in one place. It is very possible that any savings on the mortgage front can be eaten up by excessive insurance premiums if a mortgage adviser is chosen that it not totally independent.

Most independent mortgage brokers are self employed or part of a small business so do not work under any corporate banner, but this does not mean they are not regulated. In fact all mortgage advisers need to have studied and passed suitable qualifications by law to sell mortgages and then are regulated through the Financial Standards Authority for everything they do and if any client of customer either now or in the future can complain about any bad advice or recommendation directly thorough the FSA.

The high streets of the United Kingdom is full of banks and building societies all claiming to offer great mortgage deals even in these critical times, but it is important to understand that unless you are prepared to research everything that is available on the market, you will never know if the deal you got was the best one for you, unless you consider employing an independent mortgage advisor.

Mortgage Note Brokers

There are several brokers who help people to sell and buy mortgage notes. They match people who want to sell their note with people who want to buy that note. Their professional fee is paid entirely by the note buyer. The real estate notes are today a massive industry, worth more than $400 billion.

Mortgage brokers are independent contractors who usually shop for loan applications amongst lenders to find the most attractive term for a borrower. Mortgage brokers offer loan products of multiple vendors. These multiple vendors are known as wholesalers. The mortgage broker gets paid for his services by the lender.

Mortgage brokers do not lend; they primarily counsel borrowers on the problems involved in qualifying for the loan. Brokers also help by compiling all the documents that are required for the transaction. This reduces delays in the loan processing.

Mortgage notes are usually produced by banks or mortgage companies. The federal government secures these notes. There are several agents who facilitate the sale of existing private mortgage notes or commercial mortgage notes. These agents or service providers can easily arrange for point of sale funding, commonly known as table funding or simultaneous closing. This enables the seller and the agent to offer financing to their buyers, without taking the trouble of securing their bank lines of credit.

While issuing mortgage notes, agents or service providers look at the type of property, location of the property, the way in which the mortgage is structured, and the credit history of the buyers. These elements essentially dictate the guidelines for the valuation of the mortgage note. The more information given to the service agent, the better they can evaluate the right transaction for sellers. To collect information, service providers usually seek information by E-mail, fax or telephone.

Sell Mortgage Notes provides detailed information on Sell Mortgage Notes, Buy Mortgage Notes, Mortgage Note Brokers, Mortgage Notes for Sale and more. Sell Mortgage Notes is affiliated with Atlanta Interest Only Mortgages.

Florida Mortgage Interest Rates

The different types of mortgage loans available in Florida are: FHA (Federal Housing Administration) loans, consolidation loans, land loans, conventional loans, balloon loans and refinance mortgage loans.

Concerning mortgage loans, the most popular one in Florida is the fixed-rate loan. Generally these loans have a 15- or 30-year term. The ARM (adjustable rate mortgage) loans are also gaining popularity. Other loan types are hard equity loans, interest-only loans, 100% cash out refinance, construction loans, commercial mortgage loans, farmers home loans, no PMI (Private Mortgage Insurance) loans, vacant land and acreage mortgage loans. The mortgage rates vary depending on the market conditions.

The Internet is a wonderful source of information concerning low mortgage interest rates. They contain a wealth of information about current rates, various options, new packages and so on. The best way to get a low rate is to compare the many quotes. It's very easy to compare quotes on the Internet.

The most important thing is to get an interest rate that suits your family budget. Rates depend on various factors like the mortgage loan you have opted for, your financial resources, credit history and other factors.

The mortgage loan rates in Florida are typically 6.125% for a 30-year fixed (6.173% APR), 6.0% for a 20-year fixed (6.063% APR), 5.750% for a 15-year fixed (5.828% APR), 5.00% for a one-year LIBOR ARM (5.070% APR), 5.625% for a three-year LIBOR ARM (5.698% APR), 5.750% for a five year LIBOR ARM (5.824% APR), 6.375% for a 30-year jumbo fixed (6.400% APR) and 6.250% for a VA 30-year fixed (6.469% APR). These loan rates are based on loan amounts ranging from $125,000 to $400,000 while the jumbo loan rates are based on loan amounts ranging from $400,001 to $650,000. (These rates are applicable as of November 5, 2005.)

Florida Mortgage Rates provides detailed information on Florida Mortgage Rates, Florida Mortgage Rate Refinance, Florida Mortgage Interest Rates, Best Mortgage Rates In Florida and more. Florida Mortgage Rates is affiliated with Florida Interest Only Mortgages

Best Florida Refinance Mortgage Loan Rates Online

Today the internet is full of resources to help you find the best refinance mortgage rate in Florida. In the old days, we had to go from bank to bank looking for the best rates on a mortgage. Now, with the help of the internet you can shop for a home loan right from your computer.

With so many brokers, lenders and bankers to choose from, Florida mortgage companies have no choice but to be more competitive with their rate quotes. You can pick and choose to get the best refinance loan rates.

Whatever you're looking for, the right home loan is out there for you. Finding the best mortgage refinance rates online is just a matter of researching and comparing the different loan offers.

With one easy application you can have multiple lenders give you their best refinance loan deal. This will allow you to look at several competing offers, before making the final decision of which bank to refinance your home with.

In most cases, refinancing is best when the new interest rate is lower by 2% or more, than your current mortgage interest rate. This could mean big savings for you over the life of your loan.

Do you need cash? Cash out mortgage refinancing is a great way of pulling money out of your home when you need it. You may even be able to do a cash out refinance without raising your monthly payment . If you've been paying down your mortgage or your home has risen in value, then you may be able to get extra cash out of your home.

You can apply online for a Florida refinance mortgage and have competing loan offers come directly to you. Using the internet is a great way to find the best refinance mortgage rates available. If you're looking to get cash out of your home, then a cash out mortgage refinance may be just what you're looking for.

Mortgage Broker Services

There are a number of different types of mortgage broker, and not all of them can offer the same type of mortgage services. In this article we define the types of adviser you may meet and highlight the key differences between them to help ensure you get the best mortgage deal for your new property. Since changes to the law in 2005 mortgage brokers fall into one of three categories, and must highlight to their customers which services they can offer.

The first and most limited type of broker you may consult for mortgage advice is a 'Tied' service. Tied mortgage brokers can only advise you on specific mortgages. An example of a tied mortgage services would be a bank or building society. While these institutions will offer you the best mortgage they have available to you there may be better deals to be had elsewhere that they cannot advise you on. They are not able to advise you on these deal because their company would not benefit from it, you will need to search out alternatives for yourself.

The 'middle' offering is a 'multi-tied' broker. This type of mortgage services will be able to offer you mortgage services from a wider, yet still limited range of mortgage companies. Many estate agents operate as multi-tied mortgage services, offering deals from a panel of lenders they have agreed to deal with. While the choice is greater than that offered by a tied broker, you are still not getting the whole picture with a multi-tied broker and may miss out on the best deal for you. A multi-tied service can call themselves 'whole of market' as long as the panel they work with is representative of all lenders.

The most recommended type of mortgage services to use is a 'whole of market' broker. These independent mortgage brokers are usually well experienced in locating to best mortgage deal for your situation, and have access to the entire mortgage market, so they are able to offer you a full range of potential deals to suit you. They are not tied to any one, or number of companies so should be impartial in their advice. They will often have brokered deals with some of the mortgage they work with, and may therefore be able to offer you a better deal than brokers who are not able to offer the same level of choice.

Whichever level of mortgage broker you choose to use (though of course we recommend visiting an independent mortgage broker instead of or as well as any other type) be sure that you fully understand their fees and how they will be taken. Some mortgage brokers can take their fees through commission fro the mortgage provider, some as a combination of fees and commission. Before starting negotiations save yourself and the service provider time by making sure you fully understand the cost implications and are comfortable with them. This should all be explained to you at your initial meeting but if you are unclear, don't hesitate to ask.

Philip Loughran writes on a number of subjects from travel to law, automotive to education. For mortgage services Portsmouth and mortgage broker Portsmouth he recommends Choice Financial Solutions.

The Benefits of Using an Independent Mortgage Adviser

Types of mortgage advice

So what are the different types of mortgage advice and where would you expect to find them?

Non-advice

This type of mortgage broker offers the least consumer protection, they will simply ask a set of questions to narrow the customers requirements and thus filtering the number of mortgages available. They then present the customer with a small list of possible mortgages for the consumer to choose one appropriate. The consumer protection here is based on the script of questions the broker asks. The script is a process determined prior to the consumer appointment, and is impersonal. Therefore specific personal circumstances are unlikely to be assessed. It also assumes that the customers answers are factually correct and the final choice is made solely by the consumer. Although no advice is offered these brokers do handle the arranging of the mortgage on the consumers behalf, and therefore dealing with all the chasing and removing stress from the process.

Where would you expect non-advised brokers to exist?

Well believe it or not many non-advised brokers are within the high street banks and building societies.

Advice-only

This type of services is where a mortgage adviser uses their knowledge and skills to provide the most suitable mortgage to suit a consumers personal circumstances. This will involve a full fact finding interview, affordability assessment, discussion on the consumers future plans and aspirations, all of which provide key facts on a consumers requirements, and therefore a means for the adviser to identify suitable products. The adviser will not however, handle the arranging of the mortgage, and therefore the consumer would need to deal directly with the bank or buildings society to arrange the mortgage.

Where would you expect advice-only advisers to exist?

These advisers generally do not exist alone this is often a service provided through the 'Independent Mortgage Adviser' type below. And often comes about when the most suitable mortgage is only offered direct through high street (i.e. not through mortgage advisers/brokers). The adviser would therefore offer an advice-only option to the client and often charge a fee for this service. Although the client must deal directly with the bank or building society their mortgage adviser often provides support to the consumer.

Tied mortgage advisers

Tied mortgage advisers come in two forms 'only offering mortgages from one lender or its own mortgages' or multi-tied 'only offer mortgages from a limited number of lenders'. This clearly limits the number of mortgage products available to match a consumers personal circumstances and in a lot of cases they may not be able to offer the most suitable mortgage product and therefore advice may result in the best mortgage they can offer, being woefully inadequate.

Where would you expect tied mortgage advisers?

High street branches. A consumer calls into their local building society branch and their in house mortgage adviser can only offer mortgage products from that building society. Consumer choice and mortgage product suitability are considerably reduced. Whats more, high street branches often offer low mortgage rates/fees as a loss leader (marketing term to bring in business) and then try to sell their tied insurance products which are often also woefully inadequate and expensive.

Whole of market advice By far the best coverage these advisers can offer mortgages from all the UK mortgage lenders (having mortgage adviser/broker routes). The vast amount of mortgages available through these advisers is likely to cover the individual circumstances of a consumer. Whole of market mortgage advisers offer advice through conducting a full fact finding interview, affordability assessment, discussion on the consumers future plans and aspirations and then can arrange the mortgage through the lender thus alleviating the stress which comes when purchasing a house.

Where would you expect whole of market advisers?

These advisers are usually separate firms often found in the yellow pages or through the internet they are sometimes linked to estate agents. On an initial meeting mortgage advisers should declare if they are whole of market and this will be disclosed in the 'Initial Disclosure Document' they provide you. If you are not sure if an adviser is whole of market then ask them.

Independent whole of market mortgage adviser

Finally this type of adviser has the ultimate scope of the mortgage market, not only can they offer mortgage advice from the whole of market (lenders with mortgage adviser routes) but can also offer an advice only process if they identify a high street direct deal is more suitable. The 'Independent' statement indicates that the adviser must offer the consumer a fee based service if required. This means that rather than the adviser taking commission as payment for the mortgage advice, the consumer can opt for paying a broker fee and any commission is rebated to the consumer. The benefit of the fee based service is the consumer knows the adviser will not be swayed by higher commission mortgage products when selecting a suitable mortgage, however these days this is highly unlikely as the mortgage adviser must prove to the regulator why a particular mortgage is most suitable. Some occasions where the commission is quite considerable this would mean the consumer could receive more money than the broker fee paid and therefore would be better off taking the fee based approach.

Where would you expect to find Independent Whole of Market Advisers?

Like the author of this document Independent Mortgage Advisers are usually separate firms often found on the high street, yellow pages or through the internet and they are sometimes linked to estate agents. On an initial meeting an independent mortgage adviser would declare that they are whole of market and that they offer a fee based approach if required and this will be disclosed in the 'Initial Disclosure Document' they provide you. If you are not sure if an adviser is independent and/or whole of market then ask them.

What do independent whole of market mortgage advisers do for consumers?

The benefits of opting for an independent whole of market mortgage adviser include but are not limited to the following: -

Treat customers fairly.
Take time to gain key factual details of the consumers personal circumstances and aspirations.
Support and inform the consumer from initial enquiry right through to completion and beyond.
Provide an informed view on the housing market in general (price negotiation, leasehold issues etc).
Provide a individually tailored service specific to the customers needs, not a faceless "one size suits all" (non-advised) service.
Advise consumers to thing about their long-term interests as well as the short-medium term thus minimising risks.
Work for the consumer - estate agents, lenders and insurance providers have a different agenda.
Explain the features and benefits of different mortgage and protection options.
Free to act based on conscience and fairness as not usually directly targeted on specific areas.
Protect consumers data and privacy.
Provide general support during what is acknowledged to be one of the most stressful events in life.
Provide a knowledgeable "Ally" in what can be a very worrying process.
Provide proficient, impartial, examination of mortgage products.
Identify when specific lending criteria restricts consumers personal circumstances.
Expert guidance in complex scenarios (shared ownership/shared equity, right-to-buy, adverse credit).
Identify the potential lender in unusual situations, thus avoiding the need for multiple credit checks.
Select the best protection providers for consumers with health issues or unusual insurance histories.
Choose the most appropriate products, from the whole of market for each aspect of a consumers mortgage and protection needs, and thus increasing their ability to afford their commitments, even when things go wrong.
Highlight unusual exclusions on protection and general insurance products.
Ensure the provision of appropriate and customized protection products.
Quickly find an alternative lender if declined without wasting the consumers time.
Can arrange property insurance in ample time to be ready for exchange of contracts on purchases.
Encourage competition and innovation from lenders.
Assist in calculating affordability, ensuring that consumers can afford their mortgage and protection commitments, along with their other commitments.
Perform data input/entry for the consumer, reducing errors, omissions and most importantly non-disclosure.
Take responsibility for the advice and recommendation provided, thus increasing consumer protection.
Protect the consumer from corporate sales tactics used by some lenders and estate agency chains.
Understanding the urgency of some transactions and "go the extra mile" to meet deadlines.
Collate, verify and supply documentation for the lender, thus reducing delays in processing and expedite the process for the consumer.
Liaise with third parties in the transaction, tracking progress and any developments updating consumers throughout.
Use past knowledge and awareness to predict problems and resolve them in advance.
Act as advocate for the consumer during the application process.
Explain the mortgage offer and assist in fulfilling the offer conditions.
Can find appropriate lenders and insurers for unusual properties ( thatched roof, flying freehold flats etc).
Protect consumers from aggressive third-party marketing.
Often personally available outside of normal working hours to answer questions or resolve issues.
Care about consumers and provide an ongoing long-term service, often several generations of the same family.



Steve Wentworth formed his firm Wentworth Financial Services Ltd in November 2007 and has been in the Mortgage Industry since November 2002. Visit his website if your require an Independent Mortgage Adviser.