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What is Mortgage Advice?

Buying a property, for most people, is the biggest financial decision they will ever make in their lives. You’re outlaying a large sum of money for a building you’ve probably seen only a handful of times at most, which is a huge gamble no matter if you’re going to live in it, rent it out or use it as a commercial space.

This is just the beginning of the many worries that can come with the property buying process, and unless you have the money to put down in full, most people need a mortgage to make their purchase a reality.

This brings a whole new set of questions and concerns, as the mortgage advice for each person is different based on their individual circumstances. However, getting professional mortgage advice is an excellent way to clear up uncertainties about the process and let the buyer get back to being excited about their new venture.


mortgage advice


Why Do People Need Mortgage Advice?

People are recommended to seek mortgage advice ahead of applying for a mortgage for many reasons, namely, because the mortgage market is competitive and complex. As such, there is a wide range of products and rates available from different mortgage lenders.

By going to a professional Mortgage Advisor, prospective lenders can have this complex situation explained to them in more layman’s terms. The Mortgage Advisor can assess how many repayments they can afford at what price. They do so by assessing your income as well as your outgoings and debt repayments, to see the leftover amount that you could realistically afford.

They can also help explain a number of other factors that need to be considered before you sign on the dotted line, these include:

  • Annual Percentage Rate of Charge (APRC)
  • Deposit size vs interest rate
  • The standard rate paid after the fixed rate
  • Interest charge frequency
  • The flexibility of mortgage repayments
  • Length of fixed or variable rate deal


Different Types of Mortgage Advice

The mortgage lending situation is also assessed on whether someone is applying for a mortgage as an individual, in a couple or as a group. There are also different types of advice you can receive based on the type of property you are choosing to buy.

Buy to Let Mortgage Advice

As a Landlord, you can expect to pay much higher fees on a buy to let mortgage and the interest rate will also often be higher than a normal mortgage.

Commercial Mortgage Advice

For business owners who want a property or land for commercial use. As the value of the land/property is often much higher than a residential property, commercial mortgages won’t typically be pre-set like a residential mortgage would. As such, there is more variation in what could be offered.

First Time Buyer Mortgage Advice

First time buyers can often take part in help to buy schemes and other incentive products that are offered to help people get on the property ladder.

Self Employed Mortgage Advice

A self employed person will apply for the same mortgage as people in regular employment, however, the way a self employed person’s repayment affordability is assessed is different. As their income tends to fluctuate, lenders must be assured they can afford the repayments now and in future. For this reason, they are often asked for three years’ worth of books to prove consistency in their earnings.

As each lender will provide something different for each lending scenario, it’s always advised that would-be lenders get advice from several independent Mortgage Advisors before deciding.  

You don’t have to get mortgage advice from a professional, you can do your own research in this area. However, getting advice gives you more rights to make a complaint should the mortgage end up being unsuitable later on. It’s also worth noting that lenders can always reject the advice they are given too and go somewhere else for another opinion.


where to get mortgage advice


How to Get Mortgage Advice

There are numerous mortgage advice services available in the market with many popular names like the Mortgage Advice Bureau that quickly spring to mind. Though, what you want to be sure of is that you are getting mortgage advice from an accredited professional.

This comes in the shape of a Mortgage Adviser, who can also be referred to as a Mortgage Broker. These professionals are specialists in mortgage products, related laws and the application process. As such, it’s their job to look over the options available and identify the one that suits your needs best.

When seeking mortgage advice, you will come across three main types of advisors:

  1. Those tied to a specific lender
  2. Those who assess the deals of lenders from a limited list
  3. Those who check the entire market

It is worth noting that those who profess to check the ‘whole market’ can give you a wider view than most, but they can’t advise you on those mortgages offered directly by lenders only.

No matter which Mortgage Advisor you choose, you must ensure they have the necessary qualifications. In the UK, this entails completing the Level 3 Certificate in Mortgage Advice and Practice (CeMAP) course. This is approved by the Financial Conduct Authority (FCA) to make sure mortgage deals remain honest, fair and effective.

How Much Does Mortgage Advice Cost?

You can pay for mortgage advice, though free mortgage advice is available. The options are typically split between Mortgage Advisors that charge and those that seemingly offer a free service, but who take their fee as commission from the lender.

A Mortgage Advisor who charges upfront may work out their fee based on the mortgage product you choose or the value of the mortgage. Either way, if it’s free mortgage advice that is paid via commission, or paid directly by you, the Mortgage Advisor must tell you upfront what their terms are.


training to become a mortgage advisor


How to Become a Mortgage Advisor

As mentioned, to give mortgage advice in the UK, you must obtain a Certificate in Mortgage Advice and Practice CeMAP course that is approved by the FCA. This is because UK mortgages are regulated by the Financial Conduct Authority and anyone providing people with mortgage advice must earn a professional qualification to do so.

The CeMAP qualification is derived from three sections: Modules 1, 2 and 3. This makes it flexible as you can work through them in separate stages or complete them all within one course.

Another great benefit is you can study online mortgage advice courses, as learndirect provide all three levels of CeMAP qualifications.

You can study:

CeMAP Certificate in Mortgage Advice (Module 1)

The first step of three in the journey to becoming a qualified Mortgage Advisor. Over two insightful units, you will gain a foundational knowledge of the financial services environment and products, as well as UK financial services and regulations.

CeMAP Certificate in Mortgage Advice (Modules 2 and 3)

Modules 2 and 3 tick the boxes in the final stages of the qualification process. Over three advanced units, you will take your knowledge of UK mortgages to a professional level by studying the mortgage application process, mortgage products, issues borrowers may face following completion and a deeper look a mortgage law.

CeMAP Certificate in Mortgage Advice (Modules 1, 2 and 3)

This option gets you qualified with one course. It contains everything you need to become a proficient mortgage advice professional, from the fundamentals of the financial services environment and products, to the mortgage application process and the issues borrowers may face following completion.


study to become a mortgage advisor online


Study Mortgage Advice Online

If you want to provide financial advice to those looking to secure the purchase of a property, then enrolling on our FCA approved CeMAP courses will help you make that career move.

learndirect has helped over 4 million learners achieve qualifications in a range of subject areas, and by studying mortgage advice courses online with us, you can add yourself to that group.

To find out more information about our mortgage advice courses, speak to one of our Course Executives on 01202 006 464. Alternatively, contact us online to find out everything you need to know!

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