Things that other mortgage brokers don’t tell you

Introduction

Speaker: Today, I’m going to talk to you about the things that other brokers don’t tell you.

Q1: Do mortgage brokers always charge fees?

Speaker: No. Brokers don’t have to charge fees. Many brokers get paid by the banks, which means a lot of them offer free advice.

Tip: Select a broker who does not charge a fee if you want cost-free advice.

Q2: Do I always have to fill forms myself?

Speaker: Not necessarily. Some brokers fill forms for you, making the process easier.

Q3: What types of mortgage brokers are there?

Speaker: There are two types of mortgage brokers:

• Restricted Mortgage Brokers
  • Access to a limited panel of banks
  • Only a few options
• Whole of Market Brokers
  • Access to most lenders in the market
  • Offers more options and flexibility

Tip: Choose a whole of market broker for more options.

Q4: Do all mortgage brokers know about taxes?

Speaker: No. Most mortgage brokers are not qualified to advise on taxes.

At WIS, we have mortgages AND accountancy services, so we can advise on both taxes and mortgages.

Q5: Why is protection advice important?

Speaker: A good mortgage advisor is usually very busy and may not provide holistic advice, which includes protection discussions.

Protection discussions are crucial:

• Protect your family home in the event of death
• Cover monthly payments if you cannot work due to medical reasons

Types of protection:

• Life insurance
• Critical illness cover
• Income protection

The FCA is enforcing this through Consumer Duty guidelines, so it’s important to address protection.

Q6: Can I buy a Buy-to-Let (BTL) property through a limited company?

Speaker: Yes. BTL SPV (Special Purpose Vehicle) mortgages are not every mortgage advisor’s area.

There are tax efficiencies when buying BTL through a limited company.

Many advisors avoid this due to lack of competency.

At WIS, we are chartered management accountants, so we can advise on BTL structures and tax implications.

Tip: Speak to a specialist if you want to explore limited company BTL mortgages.

Q7: Can I buy commercial property from my pension?

Speaker: Yes, but this is a specialist area. Not all mortgage advisors can advise here.

Example:

• Pension value: £200,000
• Lender can lend up to 50% of pot value
• Combined: £300,000 to buy commercial property

Tax advantages:

• Rental income goes into your pension tax-free
• No capital gains tax when you sell

Tip: This is the most tax-efficient way to buy commercial property.

Conclusion

Speaker: These are some of the things mortgage advisors don’t tell you.

If you want specialist advice on mortgages, BTL structures, or commercial property, speak to WIS Mortgages, Accounting & Insurance.

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