Classic Home Mortgage
A simple way to have fewer Mortgage Problems
It seems to be a broad perception that one of our biggest financial commitments in life, if not the largest, is the pledge we make to buy our home. And although it is essential for someone to take advice on such a major expense, why you can still be confusing after seeking advice on Mortgages?
Well, before giving the very simple answer to this question Let us briefly consider what "adviser" means and if that matches our everyday experience.
According to Collins English Dictionary, the word "advise" comes from the Latin word "hands" and "forward" which respectively mean "to see" and "to see". So when someone is to advise you or me, their main objective should be to give us a "show" in the subject we are unclear. They should help us "to look" lighter, what we struggled to see before. These definitions of advising rather remind me of 1970s pop-classic by Ken Boothe that chorused "I can see clearly now the rain is away. I can see all obstacles in my way. "
But exactly how can it be? What exactly can an adviser do and in this case, What can a Mortgage Adviser do is give someone a clearer view of their potential mortgage commitment?
TEACH.
"What is it … teach? "You may ask.
Yes. That's it. We have found from my own experience that clients make more confident decisions when we first learn those on mortgages. A key question we ask consumers a very early stage are:
"Do you know the different types of mortgage payment ways?"
We are not surprised when consumers then tell us about things like fixed-rate mortgages, offset mortgages, tracker, discounted and variable rate mortgages. But when we help them understand that it is actually much simpler than that and in fact there are only two mortgage payments methods ("Capital and interest "and" Interest Only "), they seem to be genuinely surprised. Careful listening and teaching, leads to understanding. This in turn leads to to build confidence in both advisory and consultant who finally leads to a stronger informed decision and hopefully win your business adviser.
Listen. Teaching. Understand. Confidence. Business. It's a potential win-win process for both you as a consumer and Mortgage Advisor.
As a prospective "mortgagor" (Ie a person with a mortgage), you would have reduced the opportunities for problems with your mortgage if your adviser takes the time to learn their rights and liability is a mortgage holder … AND you take the time to understand. Oddly enough, this is directly in line with number 1 principle of 'Treating Customers Fairly " program that the Financial Services Authority (FSA) have laid out for all mortgage advisory firms to comply. This principle states that "consumers should have confidence that they deal with firms where the fair treatment of customers is central to the corporate culture. "Tell me:
How very "fair" can you get than a company that goes all out to demystify mortgages first, then ensure that you understand as much as possible about mortgages next, and then finally trying to win your business?
"But how long will all this take?" You may be surprised. "It looks very time consuming. "
Yes, it seems time consuming and we can only speak from our own experience as each potential customer is very individual. However, we have been pleasantly surprised of how safe and reassured a client becomes about their potential mortgage commitments after only 20 minutes to be guided through the mortgage maze.
Surely, your biggest financial commitment is worth spending an extra 20 minutes with an experienced Mortgage Adviser, is not it?
So if you want a simple, easy to take, approach to reduce the problems that can occur with a mortgage, then get your Mortgage Adviser to take the time to teach you about mortgages first. Then you stand a much greater chance to understand if the mortgage solution that they advise and recommend is for you.
About the Author
Mark Matheson has spent 16 years in Banking and Finance and is the principal adviser at Opening Doors Finance, a firm that helps you understand Mortgages and Protection e.g. Life Insurance.(Mark has a Masters Degree in Financial Markets and Derivatives.)
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