Mortgage advisors can be contracted by house buyers to help them find the best mortgage deal with the most favourable terms to suit their personal circumstances. 


What Is a Mortgage Advisor?

A mortgage advisor is a specialist with expert knowledge of the mortgage market. Also known as independent mortgage brokers, these advisors are able to offer impartial advice helping you to compare and contrast different mortgage products to suit your personal needs.


What Does a Mortgage Advisor Do?

The mortgage advisor will act as a liaison between the borrower and the mortgage lender. Regardless of whether you are buying a home or refinancing, the mortgage advisor will be able to assist you and assess the best course of action for your personal circumstances.

Their job is to find you the most competitive rates and prices as well as ensuring that the mortgage product is well-suited to the needs of the client. Mortgage advisors can help borrowers determine the size of mortgage they are able to qualify for. 




The mortgage advisor is not a lender of mortgage funds but instead sources the mortgage loans from a lender and matches them to the client. One of the key benefits of working with a mortgage advisor is that they have access to a range of mortgage products across different banks and lenders. This means that the borrower is not limited to the mortgages available at one particular bank.


Does a Mortgage Advisor Do Everything?

It is worth remembering what service a mortgage advisor is able to provide and what services you may need on top of that in order to budget accordingly.

Mortgage advisors offer you advice about what mortgage suits your needs and can recommend different lenders based on your personal circumstances. However, they cannot advise mortgages that are exclusively available if you approach the lender directly.


Can Mortgage Advisors Negotiate Fees?

Depending on the mortgage advisor that you are working with, it is possible that the mortgage fees are not set in stone and there may be the potential for negotiation.




However, there is also sometimes the option to cut out the middleman and for homebuyers to negotiate mortgage rates and fees with banks and mortgage lenders directly. 


How Much Do Mortgage Advisors Charge?

Mortgage advisor fees vary between different advisors but typically range between 0.35% and 1%. If they are independent, it is unlikely that they will not charge a fee, however the exact amount will vary.

In general, it is understood that advisors should not ask for a fee that exceeds 1% of your mortgage. If working on commission, mortgage lenders will typically pay a commission, or procuration fee, of around 0.35% of the loan amount.


How Do Mortgage Advisors Make Money?

Mortgage advisors will either receive money from the client for their services or will be paid by the lender for any business they bring in on a commission basis.




If payment is received by the client, this could be a percentage of the amount borrowed, a flat fee for their services or an hourly rate. When receiving money from the lenders, there will be an agreed commission rate between the mortgage advisor and the lender. For each client that the mortgage advisor brings to the lender, they will receive a commission.


Do All Mortgage Advisors Charge a Fee?

Mortgage advisors may or may not charge you for their service depending on the situation. Most often, the product you choose (i.e. the type of mortgage) and the value of the mortgage will affect whether or not you will be charged a fee. 

If they charge you a fee, this might be a flat rate or an hourly rate, depending on the mortgage advisor. In addition, it could also be a percentage of the amount you borrow.

Sometimes, the service of a mortgage advisor will be free to you. In this case, the mortgage advisor will be receiving commission from the lender; this is information that will be shared with you. 

It is understood in these scenarios that there may be a conflict of interest meaning that the mortgage advisor may be working for the commission from the lender rather than acting in the best interest of the client and opting for the best deal available.


Should I Get a Mortgage Advisor?

It is usually recommended that you seek advice from a mortgage advisor as they will help you find the best deal to suit your personal circumstances and have access to many different lenders with different mortgage products available.

In general, they can save you a great deal of time and stress and, in the long-run, can save you money by finding you the most affordable deal. 




For those with specialist circumstances, for example those with part-time or self-employment, working with an advisor can find you a lender who is matched to your specific circumstances.

If you do not seek the expert advice of a mortgage specialist, you will have to take full responsibility for your mortgage decision. This means that if the mortgage turns out to be unsuitable for any reasons, you cannot take your complaint to the Financial Ombudsman and will not have any rights to appeal.