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Pension & Mortgage Blog

Yes, if you believe you would benefit from specialist advice from a qualified professional. It’s worth mentioning that from any legal point of view, you are not obliged to use a mortgage broker or adviser in order to obtain a mortgage. However, the complexity and fast-moving nature of a market with heavy regulation and legal complexities can quite naturally be navigated much better when you have a qualified professional to turn to.

First Time Buyers - Advice Can be Invaluable

For those first embarking on their property journey and perhaps looking to buy their first main residence, a mortgage broker will be able to share knowledge and experience that could prove invaluable. Your first mortgage can feel quite daunting as you discover new terminology and a process in which there are many people involved along the way from the estate agent, the seller, solicitors (both your own and the seller’s), the mortgage provider and sometimes others. Everybody in this process has their own interests in mind and it all has to come together before you get anywhere near having a set of new house keys in your hand.

2021 - The Market is Shifting

The property market is currently experiencing fierce activity largely because of a combination of economic factors that include Brexit, the pandemic and the current Stamp Duty holidays that are available to home buyers. What will happen after the surge is yet to become clear but the current market is more turbulent than ever.

This makes 2021, and potentially 2022 the most important time to engage the services of a mortgage adviser. Whilst there’s nothing to say that you will certainly encounter difficulties along the way, you may not be in a position to take advantage of quickly changing market conditions that mean a better deal would have been available. Mortgage advisers have a close relationship with mortgage products and often know before many of us what offers will be available in the near future, or what’s out there right now but not being marketed heavily.

Even before you make your application, a mortgage adviser will have an understanding of the strength of your application and can advise on the right course of action if something isn’t quite where it should be. The alternative to this is submitting an application that takes a long time to be rejected and creating delays that could have been avoided with a professional eye looking over the process.

The Price vs Missing Out Argument

A mortgage adviser will charge a fee. In some cases, this could be commission based or it could be a one-off fee. For those who choose to use a mortgage adviser, it’s often found that the advice that attracted a fee initially, gave rise to savings down the line and so the return on investment was positive.

Yes, a financial adviser who specialises in pensions can analyse your pension pot to see where improvements can be made.[/Snip:A] Experienced financial advisers have a range of tools and experience available to them that helps them identify areas where your pension pot could be performing better.

By understanding your whole financial picture, it’s possible to look at lifestyle decisions, future plans, potential tax-saving areas and use this to build a model that justifies moving your pension elsewhere. Your attitude to risk can play a role in this. Where money is invested is influenced by how much risk you’re willing to place on the money. Certain investments are subject to factors that have high growth potential but with this comes greater exposure to market forces which means wider economic factors and the behaviour of market participants can cause investment value to fall too.

Whilst the risk is one aspect, an experienced financial adviser will understand how best to diversify your investment portfolio in such a way that a level of protection is afforded to your whole pension pot. You should not be placed in a position that one failed investment can destroy your retirement.

Can I Move My Pension Without a Financial Adviser?

Some decisions around moving your pension pot require you to have taken financial advice. Financial services is a heavily regulated sector that is designed to protect those who take advice from harm if they choose a provider who doesn’t have their interests in mind or provides an incompetent service. On the other hand, the regulator and investment providers themselves have experienced many situations in which people have historically made poor decisions that have led to serious negative outcomes. With this being the case, in order to move pension pots over a certain threshold amount, it’s necessary to receive formal advice from a qualified financial adviser.

What you choose to do with the advice is up to you and in some cases even if the advice suggests leaving the pension pot where it is, you may still be able to make the switch, but this isn’t universally true.

In short, your retirement savings are possibly the most important pot of money you will ever need as its value comes at a time when you may be unable to work and you want to continue to enjoy a standard of living over and above the state pension provision. For this reason, even if you’re not obliged to take advice, you may still choose to as the input can save you thousands of pounds.

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