What is a whole of market mortgage advisor?

What is a whole of market mortgage advisor? You’ll often be told by estate agents that you HAVE to have a review with their mortgage broker. This isn’t the case and they can’t force you to do so, but they rely on people assuming it’s a condition of the purchase. The problem with a lot of these brokers is that they are only able to give advice on a limited number of mortgage lenders and products. Out of tens of thousands of mortgages, a tied broker may have access to around 20 – 100. So you MIGHT get the most appropriate mortgage… but the odds aren’t exactly in your favour.

Whole Of Market

A whole of market mortgage advisor or mortgage broker is someone that can review your requirements and then – when they go hunting for a mortgage for you – can look at a wide variety of products from a whole bunch of different lenders in order to find the most appropriate product for you and your circumstances.    There are literally thousands of mortgages out there, and which one is right for you might be really obvious – your high street bank, or it might be from a lender you’ve never heard of before. Now, it might sound like ‘whole of market’ means we can look at absolutely every single mortgage product out there, but unfortunately, that’s not the case. Some deals are only available direct from the lenders. So some banks will only deal with individuals who want to take out a mortgage, and won’t deal with a third party intermediary such as Fogg Financial. What you’ll often find however is these lenders aren’t offering the most competitive rates anyway, so it’s not always a bad thing that they aren’t available for us as your advisor to look at. A good advisor will be able to recommend a product even if it means they don’t get any commission from the lender.  At Fogg Financial we believe in giving you the best possible service by ensuring you get the most appropriate mortgage product. If we can help you every step of the way, great, or we have to point you in another direction and let you run with it on your own, then that’s what we’ll do. You are our number 1 priority. We want you to come back to us over and over again every time you move house and remortgage. We aren’t just looking for a single transaction with you.

But don’t they cost more?

Not always, but sometimes. And there’s kind of a logic to it.   If you only have say 40 products to choose from, then it’s relatively simple to pick which one might work best for a customer. When you have 10,000+ products to choose from, then it can be quite a time-consuming process to speak with the lenders and ensure you are going to get the mortgage once the application goes through. This is why a lot of whole of market companies, Fogg Financial included, charge a fee for their services. But the difference of 0.5% in interest rate over the term of the average mortgage (£187.5K) comes to just under £23,500. So the fee you are paying is relatively insignificant when it comes to the potential long term saving.

Who is best for you?

This very much depends on your circumstances as always, but for 95% of people, you are better off with a whole of market mortgage advisor so you have thousands of mortgages to consider instead of just a handful. If you want to discuss your options with us and have the whole of the mortgage market reviewed to find you the most appropriate deal, then get in touch today.

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