Advisers

Knowing that any given adviser is authorised to deal with the public is only one part of the battle. You also need to know what kind of advice they are authorised to give. Some advisers put together a panel of big lenders that they work with. When you approach them for advice they will go through everyone on their panel before telling you which deal looks best. Other advisers work more like information providers. They have set up a structured set of questions to ask clients, questions which narrow down the search for a mortgage until you are left to pick from a small handful or rival deals. The final type of adviser will have computer systems which can search through the entire marketplace before finding the most suitable lender. To be honest there are pros and cons to each type of adviser and the right approach for one borrower may not be so suitable for another. But the important thing is to know exactly what you are getting before you sign up. If you think your adviser is shopping around the whole marketplace for you when he or she is in fact just narrowing down your options and leaving you do choose the right deal then you might be disappointed.

Financial Advice

Finances can be dealt with without outside financial help but this is not always as easy as first thought, time is a big factor but the ability to assess risks is also important. This is where help from financial advisors is necessary.

There are such a lot of organisation that are offering to give financial advice it is difficult to choose the one that will be of most help.

Asking friends and family for recommendations is a good start but it should be remembered that everyone’s financial requirement are totally different.

Who ever is chosen should be authorised by the Financial Services Authority. This being the case access to the Financial Ombudsman Service which will help settle any disputes that may arise.

Make sure that the advisor chosen will offer general advice on all types of investments.

Normally a free first consultation will be offered and this should be used to find out if they can offer the advice needed. Also find out about the person dealing with the case and ask about their qualifications and experience. Take a plan to this meeting as it will be easier for the advisor to assess the situation and needs. Think of family goals, retirement and if money is to be put away for children’s education or house deposit.

Another thing to get clear is how much will they charge and getting more than one quote is a good idea because all advisors fees differ.

Some brokers will also offer advice and again most will give a free first visit.

The best advice is if help is needed get professional advice.

Lifetime Mortgages

The best advice is to get sound professional help before agreeing to any scheme. All aspects should be considered including how it will be paid and if it will hamper any state benefits.

Many companies dealing in lifetime mortgages offer the borrower the ability to have small amount loans as and when required rather than a large lump sum that could sit in a bank account not needed.

Only interest is paid on drawn down sums with a minimum varying between companies but around £2,000 to £5,000.

Based on a 70yr old wanted £50,000 with annual rates around 6.45% - 6.69% over 5 years this would cost between £68,000 to £69,000, over 10yrs it would be £93,500 to £95,500 and over 15yrs this would jump to £128,000 to £132,000.

Alternatively downsizing could be an option although it would possibly cost around £2,000 for fees, equity would be raised and the owners would still possess their own property.