Although a lot of people wouldn’t dream of taking out a large loan without first getting expert advice, there are no legal requirements for homeowners to seek professional expertise before applying for a mortgage. And while some buyers will read every line of the small print, others may not be so diligent. This can leave buyers vulnerable to unseen clauses in their loan contracts, which could potentially put their property at risk.
Luckily, the number of non-advice mortgages has dropped significantly in the last decade. According to results released by @TheFCA, “The number of non-advised transactions fell to 3 per cent in the second quarter of this year compared with 35 per cent in the same period of 2008.”
What’s caused the drop in non-advice mortgages?
There are a number of factors that have influenced this dramatic drop in non-advice mortgages. For a start, the financial crash of 2008 forced all of us to take a closer look at our finances. For years leading up to the crash, mortgages had been very easy to secure and house prices had been climbing at a rapid rate.
After the crash, house prices fell across the country and most banks tightened their lending criteria. As a result, borrowers were forced to pass stricter affordability checks when applying for a mortgage and the number of loans agreed fell sharply. The increased difficulty of securing a loan may well have encouraged buyers to put more time and thought into the financial products they were taking out.
As mortgage advisors are perfectly placed to help buyers find the loan that’s right for them, it’s no surprise that more and more people are turning to the experts before signing on the dotted line.
Helping you find the loan that’s right for you
When you begin researching available mortgages, you’ll soon see just how much variety there is in the industry. Mortgages come in a wide range of shapes and sizes, with different products suitable for different people. If you’re looking for security and like to know how much you’ll be paying every month, a loan with a long fixed-rate period may well be right for you. If, on the other hand, you think you might want to sell up and move on after a couple of years, a loan with a short fixed-rate period, or even no fixed rate period at all, may suit you down to the ground.
An expert mortgage advisor will listen to your financial requirements and personal circumstances and take both into account when finding you a loan. This will boost your chances of securing the product that’s right for you, and help to minimise the risks involved in taking out the loan.
Getting expert advice before taking out a mortgage is essential. Find out more about the professional mortgage advice available or talk to one of our experienced advisors by exploring our site today.
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Written by: Andrew Page