Misconceptions and Myths: What Does a Mortgage Adviser Really Do?
One of the most striking points made during the podcast was how little many people understand the role of a mortgage adviser. Jordanne’s candid admission set the stage for this discussion:
It’s actually unbelievable how many people don’t know what a mortgage adviser does. – Jordanne Whiley MBE
This misunderstanding often leads to undervaluing their work. The hosts described how advisers are perceived as people who simply click through options on a computer and submit applications. However, the reality, as Ajay and Jordanne emphasize, is far more intricate.
Mortgage advisers manage countless responsibilities, from conducting detailed financial assessments to navigating complex lender requirements. Jordanne explained that her own initial misconceptions about the job changed once she saw firsthand what it takes:
There’s a lot of admin, dealing with lenders, surveyors, estate agents, and solicitors—all the extra work behind the scenes that clients don’t see. – Jordanne Whiley MBE
The Real Work Behind the Scenes: Navigating Challenges
Ajay elaborated on the unseen work that goes into securing a mortgage, highlighting the hurdles that come from working with different stakeholders in the process:
I find myself arguing with underwriters consistently, half the time educating them. – Ajay Nayyar
This insight reveals the reality of the mortgage world: it’s not just about matching clients with loans; it’s about advocating for clients and problem-solving when things don’t go as planned. Ajay’s story about spending 40 minutes explaining a complex title split to an underwriter exemplifies the persistence and knowledge required.
The duo also shared an anecdote about how clients often rely on them to handle unexpected roadblocks. Jordanne recounted a stressful four-month case where, despite extensive work and constant follow-ups, the client ultimately chose not to proceed, which meant she did not get paid. This highlights the uncertainty and dedication involved in their work:
I spent four months and hours and hours of work and stress for nothing. – Jordanne Whiley MBE
Why Going Direct to a Bank Isn’t Always the Best Option
Another significant topic covered was the common belief that going directly to a bank can save money. Ajay and Jordanne dispelled this myth with real examples of clients who ended up paying more by not consulting a mortgage adviser. One memorable story involved a client who boasted about saving broker fees by going directly to the bank, only for Jordanne to point out that he could have saved much more even after paying her fees:
When you go direct to a bank, you don’t know what you don’t know. Our job is to know all the options and find the best one.” – Jordanne Whiley MBE
Ajay reinforced this by recalling an instance where a developer missed out on saving £340,000 on a project because he didn’t seek professional advice:
I told him that the deal he had just done would have saved over £340,000 if he hadn’t gone direct. – Ajay Nayyar
These stories underscore the value of mortgage advisers who have comprehensive knowledge of the market and can navigate options that clients might never consider.
Understanding Broker Fees: The Value Beyond the Cost
Ajay and Jordanne emphasized that while clients often question broker fees, those fees represent the adviser’s hard work, expertise, and time invested in securing the best deals:
I treat my clients’ cases like they’re my own. There’s no reason why I shouldn’t be paid for the work I do. – Ajay Nayyar
The duo explained that fee-free advisers may undervalue themselves or their work. While there are some competent fee-free advisers, Ajay and Jordanne believe charging fees reflects the dedication and comprehensive service they offer. Jordanne pointed out that many clients assume advisers work for free because they receive compensation from lenders, but this ignores the dual role advisers play:
We get paid by the lender if it completes. There are cases where we put in so much hard work and don’t see any payment if the deal falls through. – Jordanne Whiley MBE
The Importance of Building Trust and Strong Client Relationships
One of the most valuable aspects of the adviser-client relationship is trust. Ajay described how some clients are proactive in seeking advice even before securing a property, which helps establish trust and ensures smooth transactions:
“Some clients need the assurance of talking through a deal from beginning to end, and that’s where we add real value.” – Ajay Nayyar
This approach is especially crucial for property investors, who often handle multiple transactions and require a reliable team that understands their needs.
The Added Value: Acting as Your Complete Property Partner
Ajay and Jordanne explained that being a mortgage adviser often involves wearing multiple hats, from financial consultant to informal project manager. Jordanne joked about how they often find themselves acting as accountants and solicitors to ensure everything runs smoothly:
No, we act as the accountant, the solicitor, the broker. – Jordanne Whiley MBE
Ajay added that this dedication sometimes annoys lenders or other parties, but it’s a testament to their commitment to the client’s best interests:
They hate me because I’m on top of them consistently. They just want to get rid of me as quickly as possible.” – Ajay Nayyar
Key Takeaways
- Mortgage advisers do more than process applications – they handle complex challenges and advocate for their clients.
- Behind-the-scenes efforts include navigating lender requirements, educating underwriters, and managing interactions with other stakeholders.
- Direct-to-bank routes can be misleading, often costing clients more in the long run.
- Broker fees reflect the adviser’s extensive work and expertise, which can lead to significant savings for clients.
- Trust and proactive communication are crucial for successful client-adviser relationships.
Ready to transform your property journey with expert guidance? Contact Hearthstone Mortgages today to experience the benefits of working with dedicated, knowledgeable advisers who prioritise your success.
