Mortgage Broker or IFA?

When you are looking for a mortgage, everyone tells you that you shouldn�t just take the first one you are offered. You need to shop around for the right one.

This is true. But it�s not exactly easy. There are thousands of products out there, all with different features. How are you supposed to know where to start in shopping around?

Obviously, the best thing is to consult a professional. But first of all, you have to decide which professional to choose! There are two main types � a mortgage broker and an Independent Financial Adviser (IFA).

What does an IFA do?
The job of an IFA is to work with individuals or businesses to help them meet their financial goals in the best possible way. The adviser works with you on a financial plan to make sure you can make the best financial choices and ensure your own financial security in the future.

First the IFA will use a fact-finding process to achieve as accurate a picture as possible of your financial situation, investment preferences, etc. On the basis of this the adviser will work out a plan and recommend the most suitable financial products. This includes not only mortgages, but investments, pensions, and insurance products.

What about a mortgage broker?
A mortgage broker, obviously, works specifically with mortgages. Like the IFA, the broker will start off with a questionnaire or a fact-finding exercise to form a clear picture of your financial situation. Then the broker will select a mortgage product that is suitable for you, help you with your application, and assist with the arrangements for obtaining the mortgage.

Which should I use?
Whether a mortgage broker or an IFA is better for you depends on what you need.

If it is simply a mortgage that you need, then a good mortgage broker is likely to have more mortgage expertise than a good IFA who doesn�t do much mortgage business. On the other hand, if you want an endowment along with your mortgage, you do need an IFA, as endowments can be tricky. And if you need your mortgage decision to be part of a wider financial review, or a complete financial plan, you should consult an IFA.