The Difference Between Tied and Whole Market Mortgage Advisers

By Doherty • February 26th, 2011
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It’s a bit astounding when nearly all people learn this, but mortgage specialists are not all created equal.  When you seek out the type of mortgage comparison that only mortgage brokers can provide, you might have absolutely no clue that there are two separate and distinct types of advisers with whom you can deal.  And while both types will help you to compare mortgages, and hopefully find the best one you can qualify for, each kind offers their own set of parameters, advantages and disadvantages.

There are two types of mortgage brokers you have the chance to work with: tied advisers and whole of market specialists   The ‘tying’ which is referred to in the term ‘tied’ means that this type of broker is contracted to work with a specific issuer of mortgages.  By contrast, the whole of market type of mortgage advisers have no such contractual obligations (or at least, their obligations are not terribly stringent)

Let’s take a quick look at some of the up sides and down sides each type of broker brings to the table with them.

Tied specialists are able to use their contracts with one or more specific loan issuing companies, in order to acquire mortgages at some of the lowest possible prices.  Keep in mind that the “some of” part implies that this is a very questionable proposition.  If you are looking to compare mortgages, tied mortgage advisers are most likely going to be a poor source for mortgage comparison purposes

However, notwithstanding the “pure commission sales person” stigma that such a description might give you regarding tied mortgage brokers, there is an up side to them.  Because they have a contract with a mortgage issuer, if that issuer has either the best interest rate, the best fee structure or the best terms in any other way, this broker might be able to get you a truly exceptional deal.  When you are shopping around for a mortgage specialist, do not discount the tied variety.  One person’s point of limitation is another person’s point of focus.

But if a particular focus is your goal, then you will probably not have as much success with a whole of market mortgage adviser .  These advisers may occasionally trade quality for quantity (in rare instances), but they will certainly be able to offer you independent mortgage advice.  They will receive their commission regardless of what company’s offer you decide to take up, so they are under no particular pressure to “sell” you on any given company’s mortgages.

As you can tell, there is a decision you are going to have to make, as it regards your type of focus.  If you know that one particular company offers the best terms by default, then choosing to work with a mortgage adviser who is tied to that company would most likely be an excellent idea.  However, if you are just starting to ‘test the waters’ in your mortgage comparison, a whole of market broker may be just what you need.  The choice is yours.

 

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