A ‘Fairy’ Tale

It had taken Tim and Pete months to find their dream home. Evenings and weekends scouring estate agent windows, sifting through mountains of property details, visiting countless prospects - at one point it had seemed like an endless task.

The apartment that they had settled on was in a nice area and overlooked the park. It had picturesque looks from the outside whilst inside it was split level with a spiral staircase between the floors. The bedroom had a large walk in wardrobe and a skylight that opened to the stars. They had been together for three years and had decided it was the right time to buy their marital home. Finding the property made them very happy, but also presented a headache that they did not feel confident enough to deal with. They needed a mortgage!

It wasn't that they didn't have offers. Both had good salaries and steady jobs, very little debt and no past credit problems. In fact they were the ideal candidates. The problem was that they had been offered three.

Tim had a good relationship with his local bank that had offered a mortgage quite a few weeks ago. They were able to provide the whole package, but they required a number of separate insurance's and this all seemed quite expensive. 

The estate agent offering the apartment had firmly requested that they should see the 'in house mortgage man' as part of the qualifying process. The agent was now applying pressure to take this arrangement and Tim and Pete did not appreciate the hard sell.

Pete's friends Janet and Jill had recently taken a mortgage through a direct line provider and suggested their services. Tim and Pete soon ran into problems with this route; they easily made it through the initial qualifications but soon realised that advice was not part of the package. They were required to choose their own mortgage from a series of options and found this quite a worry, as it was such a big decision.

This story illustrates the difficulty involved with finding the right solution. With so many places, to get advice you cannot be certain of getting the best deal. The gay community is fortunate in that it has a number of specialist independent firms offering impartial mortgage advice - Tim & Pete should have made use of this. If they were to see an independent mortgage adviser they could have discussed their needs fully prior to being offered exactly the right product from the whole market place. 

Following this example you may still be apprehensive, or even fearful of making an appointment. Let us give you a preview of the science involved with providing advice. Step into our office and we'll give you a guided tour. The initial stages involved with giving advice are all designed to give consideration to the clients' needs not what the adviser feels is flavour of the month.

First of all they should formally introduce themselves with a business card, You and Your Mortgage leaflet and a Mortgage Information Sheet. This highlights Terms Of Business and is essential if you are to know about the different levels of advice they are authorised to give and the method under which they are paid. These documents will provide important facts and mortgage details you should be made aware of. You should also ensure that the adviser subscribes to the mortgage code of practice and holds a registration number. No lender would accept business from them without it!

Once the formalities are over an adviser will normally use a questionnaire to obtain information. This is like solving a jigsaw puzzle, arranging the 'pieces' to form a clear picture. These details include occupation, income, outgoing, current property details and attitude towards risk. All of these facts and figures are important, but you should make clear your personal feelings. These are the most important details of all and are likely to influence recommendations that are made. Don't be afraid to ask questions! 

At this point the adviser will be ready to survey the market place on your behalf. This can be like searching for a needle in a haystack, especially with all the recent interest rate changes. Ensure the method for selection is reliable. Advisers are often guilty of using a panel of lenders. This often translates to only providers on whom they have first name terms and high commissions. Ask the adviser for the source of their information. If they have online search facilities with a provider such a Moneyfacts, this is not only reliable - it shows nobody is pulling their strings.

Most reputable independent mortgage advisers have nothing to hide and should include you within the process at a level you feel comfortable with. This allows a relationship to build and ensures that trust develops. You never know, you may even find selecting a mortgage an enjoyable experience. 

Subscribe to the Pink Finance monthly newsletter and keep abreast of what's new on the site by clicking here. Your address will not be shared with any third party and you may unsubscribe at any time.

©2001-2002

Please note that the articles contained within this site were written for Pink Finance and are subject to copyright. They may not be reproduced in any form without prior written permission from the editor. Graphics/images/logos and site design are by John Myers and remain his copyright. Likewise, they may not be reproduced in any form with prior written consent.