Your Journey

What level of advice are you looking for?

Whatever the reason… getting the right advice is crucial as it allows you to tailor the mortgage to fit in with your current ideas and your future plans.

Finding the right mortgage, and the right company for you, means a lot of thought and research is necessary. You could pick up the phone, search the internet, read the financial pages in the newspapers, ask everyone you know or walk up and down the High Street visiting all the banks and building societies. Even after all that you will probably only manage to find a tiny percentage of the companies who are out there, willing to lend you money.

There are more mortgage companies around than ever before and that’s great news for you. There are so many more options… The reality is that in some ways it can actually make it harder (not easier) to make a decision.

It is for this reason that you may decide to enlist the help of a professional adviser to help you wade through the sheer volume of information, with all it’s jargon, to ensure you are getting the best possible mortgage deal you can.

Wouldn’t I be better off just going directly to the bank or building society?

While this would be a logical thought, it is often not the case at all. Brokers receive income from most lenders because they do a lot of the work for them.

Often the lenders prefer that a broker does all the research, makes the recommendations and sees the clients in their own offices, in their own time. This way the lenders still get the mortgage business, so they make enormous profit without having to get involved in any of the costs or responsibilities of the advice and administration that’s involved.

The lenders save money and pass on some of those savings to the broker, ending the myth that you can’t get a good deal if you go to a broker!

This is why you will have seen a dramatic reduction in the number of mortgage advisers at the High Street branches. The lenders long-term objective is to get someone else to take care of the initial advice and consultation stages.

When is advice, not advice?

It’s important that you understand the difference between advice and information. Qualified advisers are expensive to employ which is why the High Street lenders are cutting back on them. However anyone can give you information, trained or not. It makes more sense for the lenders. They might tell you they can arrange for you to see their qualified adviser in two or three weeks time or… you can talk to someone who will be pleased to give you “information”, right now.

It might sound like advice but it won’t be. Not giving “advice” means the staff need no qualifications, so they’re cheaper to employ and there’s no comeback if the customer makes the wrong choice.

And, of course, if you make a decision based on what you hear, are you happy to take the responsibility if you get it wrong? Are you prepared to take the risk with, probably, the biggest investment you’ll ever make?

If, on the other hand, you were given inappropriate advice by a
Qualified mortgage adviser, you are fully protected because they are regulated by the Financial Services Authority (FSA). Qualified advisers are personally responsible for the advice they give you. The FSA has the power to fine them, bar them from working in the industry and award you significant compensation.

So…

Where can you go to get decent unbiased mortgage advice?

You have 4 choices…

Your first option…

Learn all about the mortgage market yourself! You will then be able to make the your own decision based on your knowledge, experience and understanding of the products.

Your second option…

Go and see a High Street lender like a bank or building society and buy an off the shelf package… the “one size fits all” approach. High Street banks and building societies only recommend their own mortgage products and, with no competition to worry about, they may not be the most competitive or suitable for you.

A big advantage of going to a Bank or Building Society is that you are not charged a broker fee. However, as you are often not actually given any advice about the mortgage market and what is right for you, you wouldn’t expect to. On the downside, Banks and Building Societies make the majority of their profits from mortgages. It is not in their interest to let you know you can get a better deal if you go to an alternative lender or an independent mortgage adviser.

Your third option…

Arrange to see a average Mortgage broker. As they only generally put forward mortgages from a small number (or “panel” as they’re known in the industry) of mortgage providers, your alternatives are still restricted. Whilst they are likely to recommend the most suitable product available to them, they have still only got a very limited number of lenders to choose from.

Most mortgage broker companies have chosen to restrict the lending and insurance advice they give as, in return, they receive higher rates of commission for effectively promising the business to fewer organisations. The increased operating costs in the regulation of mortgages has made this option increasingly popular for these organisations

Unlike the High Street lenders, this type of adviser is often reliant on the commission they receive from the lender for their income. This could mean the product they recommend is influenced by the amount of commission they earn on it.

Your final option…

Find a truly independent mortgage adviser. The key points that separate an independent advisor from all the other mortgage providers are:

• They have access to the whole of the mortgage market.

• They can explain all about the mortgage market, the different incentives available and help make the small print easier for you to understand.

• They make sure you have the mortgage that matches your needs now and in the future, based on your financial and personal situation.

• They will see to it that you’ve got the most competitive mortgage repayments around, given your personal circumstances.

• They will give you the choice of how you pay for the advice, ensuring any commission the lender is paying will not influence the recommendations you get.

Obviously you are not going to get professional expertise, advice and guidance for free… after all you don’t go to a solicitor and expect to have their advice and time for nothing!

Because Independent Mortgage Advisers do not act exclusively for any particular lender, they generate their income from two sources…

• A set fee to cover the cost of advice. In most cases the commission paid by the lender covers this.

• Commission only basis with the cost of the advice paid by the lender.

Bright Mortgage Advice… firmly in the independent advisor camp

Because Bright is truly independent, our advice is always based on your needs. Any product chosen is always judged purely on its merits… and that’s it. We look at the whole of the market… That’s more than one hundred companies and around 8,000 mortgage schemes, to guarantee you a highly competitive product, that suits you and not the lender.

Every recommendation we make is always supported by a straightforward report explaining why that particular product has been chosen, the benefits of this product to you and how we came to our conclusions. Bright have always provided research and recommendations - long before it was made compulsory by the F S A.

You’ll enjoy real peace of mind, as well as, the most suitable mortgage. Our mortgage files are audited by our network, Personal Touch, and their compliance team, to ensure that the advice we give continues to be of the highest quality. These files are available for inspection by the F S A at any time.

How much will using Bright Mortgage Advice cost me?

Understandably, you may have some doubts in your mind about the cost of independent advice and if can you afford it at this expensive time.

We are not going to say anything patronising here like… “you can’t afford not to” or “you pays your money and you takes your choice”. You just have to consider how other mortgage advisors can afford to give you so called “free” advice!

In order to maintain our true independence we reserve the right to charge a fee. This is primarily because there are lenders we recommend who have chosen not to pay any kind of commission to us for arrangement and implementation of the mortgage. When this occurs a fee is charged to cover our costs. You will be pleased to know that last year only 6% of our clients paid any kind of fee at all. (Statistics taken Bright Mortgage advice client transactions from January to December 2005)

At Bright we have an open and honest policy when it comes to our fees. Because our clients are all so different we have created a payment system that is fair to everyone...

Our pledge to you is that you will always be told before we commence any work on your behalf if your situation means a fee is likely to be charged and what that fee might be. This ensures you know exactly were you stand at all times. You will never get a bill that you were not expecting

What extra are you getting by using Bright Mortgage Advice?

At Bright Mortgage our commitment to you doesn’t finish when you’ve signed the agreement. We believe you should get real support from your advisers, so you can expect a lot more than someone just sending off the paperwork and waiting for the commission cheque to roll in.

This is just part of the service that we provide:

• A full understanding of your current position

We will complete a thorough fact find so that we know exactly what your current situation is.

• Navigating the Mortgage Universe

With access to sophisticated research systems (such as the powerful Mortgage Brain) your expert Bright Mortgage adviser will apply their skills and understanding of your needs to recommend the most suitable option from the thousands available. You can relax, knowing you’re now on the right path.

• Recommendations in plain English, not financial jargon!

You will never be subjected to a barrage of technical jargon or given complicated documents to understand. In fact, at Bright it’s a matter of pride that every recommendation is explained in simple terms… so you know everything you need to know when it comes to making those big decisions.

Giving you extra purchasing power

• Once you have had your mortgage “agreed in principle”, you’ll be given a certificate confirming the arrangement. As a potential buyer, this demonstrates to Estate Agents and sellers that you have done your homework. It tells them you are truly committed to moving and fully aware of your buying power. This in turn puts you in a stronger negotiating position, because you can move faster and you don’t have to worry about being let down by any lender.

Your decision in principle may be subject to changes once your application has been submitted.

• Superior support for you

When you’re making a mortgage application it can be a nervous time. With Bright we are able to track your application from start to finish. Because we keep you fully informed you will not have to do any chasing, just sit back safe in the knowledge it is all being taken care of. Our client support team are there supporting the mortgage advisers to chase applications or liaise with estate agents, surveyors and solicitors.

Full advice on your protection needs

At Bright we will always ensure that our clients are fully aware of all of their options in the areas of Life assurance, critical illness cover, income replacement, and redundancy cover.

To do this we will first look at what cover you currently have, then discuss what areas you feel are important to protect. We will look at any shortfalls and identify how important they are, presenting our recommendations leaving you to choose what action, if any, you wish to take.

Helping you to find the best deal on your insurances

Shopping around is the best way to save money on your insurance. At Bright Mortgage Advice we compare quotes from many of the UK’s leading insurance companies. Our computer software compares the benefits and restrictions as well as the cost ensuring that you get the best deal available not just the cheapest.

From the first contact…

Because at Bright you always receive a fully comprehensive service, whether you’re purchasing for the first time, moving home, buying for investment or simply looking to get a better mortgage deal… you’ll always enjoy exemplary levels of service. From a thorough needs analysis and research, to the professional management of your mortgage application, our advice puts you in the right place at the right time to get the very best option for your needs.

Setting a date that’s convenient to you

Once you’ve made the decision to go ahead and use Bright as your Independent Advisor, where you want the first meeting is really up to you. We’re very accommodating. You can either have the appointment at your office, home, your local estate agent’s or at our head office… it’s your choice and demonstrates how we offer you real flexibility and convenience.

Once you’ve chosen the place, all you’ve got to do is decide when is best for you. With our local estate agent offices open six days a week and evening appointments available… we can arrange a date and a time to suit you.

Saving you time - even before the first meeting!

To reduce the time spent filling in forms at the initial consultation, we will need some information from you prior to the meeting. This allows us to answer more of your questions and do the necessary research, enabling you to see the various options as well as the costs

These details also allow us to see your situation from the perspective of the lenders. (They include need to not discount adverse clients etc)????

• Your address history for the last three years.
• Your current employment status.
• Your current income (your last payslip and P60 will be enough if you’re employed or three years of accounts if you’re self-employed).
• Your regular monthly outgoings.
• What are you looking to achieve by taking this step? (This is important as it may affect the kind of mortgage we suggest.)

Don’t worry if you don’t have all the information to hand. During the meeting we’ll go through a series of questions to help clarify your position and what you want to achieve.

With so many different lending options available, the extent of your borrowing is potentially huge. At this stage we will be able to give you an indication of what you can borrow and an approximate cost.

The first meeting…

It’s your chance to explain exactly what you want from your mortgage. It’s also your opportunity to find out more about us, the mortgage application process and how we give you solid independent advice.

To cover all these aspects and to make sure you do get the best advice, at Bright there is a set process. This will prepare you and give you all the information that you need, so you can go house hunting with complete confidence.

There’s a lot to cover in the first meeting and it needs to be in-depth, after all buying a house is likely to be the biggest investment of your life.

As part of our role as an Independent Mortgage Adviser, the first part of the meeting covers our commitments to you. It is our legal obligation to talk you through the Initial Disclosure Document (IDD) so you know exactly where you stand and also outline our responsibilities to you.

This includes what services and options are available to you, how your mortgage recommendations are made, how we are regulated by the Financial Services Authority.

Fact-finding… Exactly what you are looking for?

We’ll help you understand the key choices available to you in the mortgage market place. By taking the time to help you to work out the real benefits available and how to distinguish them from the cheap gimmicks on offer, we will make it easier for you to make the right decisions. We will…

• Explain to you the vast differences there are in relation to the amounts different lenders are prepared to offer you and help you to plan for your purchase.

• Explain any factors that may influence the interest rates charged on your mortgages, what are the current interest rates and what the trends are at the moment.

We will ensure you have a clear understanding of all of the incentives available. There is, after all, an increasing and confusing array of interest rates to choose from. These include:

• Fixed interest rates… where you know exactly what your payments are going to be for a specific period, regardless of what happens in the economy. You’ll know exactly what you have to pay. You have also to be aware that if interest rates fall you will be committed to the fixed rate and would not benefit from the reduction.

• Capped rates… a maximum is set on the interest rate. This is similar to a fixed rate mortgage, but there is potential for your payments to reduce if interest rates fall.

• Discounted rates… you can enjoy a genuine discount from the lenders on a variable rate for a specific period. After this time your interest rate will return to the standard variable rate. The benefits can be greater if interest rates fall, however if they rise, your payments will increase accordingly

• Tracker rates… are linked to, often being just below or just above, the Bank of England (B O E) base rate, for a specific period. Your payments will fluctuate dependent upon the B O E base rate, this could be good when rates fall as your repayments will go down, but the opposite applies if rates rise.

• Flexible mortgages… as the name suggests you will have more flexibility. You can change the amount you pay or the frequency of payments and offset your savings against the mortgage, depending on the mortgage provider. These rates are usually only available on a variable rate basis, not allowing you the security that a fixed rate would give for example.

• Variable Rates… a lot of people are on these schemes and really shouldn’t be. They may be unaware of how easy it can be to negotiate a better rate either from their existing lender or an alternative one. These rates are set by the lender and often represent the poorest value to the customer. Most mortgage schemes, after an initial incentive period, change back to the lenders standard variable rate, most often resulting in a significant increase in your monthly payments. Great news for them - bad news for you!

With all of the above options, in addition to pointing out the advantages to you, we will explain the less obvious disadvantages, such as any early repayment charges that may apply, the effect on payments when the lenders variable rate changes or indeed if the Bank of England rate rises or falls. We will be happy to provide a personalised illustration, to help you, at any time.

And at the end of the meeting…

You will be left with some working examples of the type of payments you might expect from the lender, the costs, any conditions and details of the mortgage scheme.

You’ll also be offered advice and help to fully understand the house buying process. You will have a good idea of the costs that might be involved such as:

• Solicitors fees and any payments made on your behalf (disbursements)

• Estate agent’s costs

• Government taxes including Stamp Duty

• Lender redemption fees (to encourage you not to change your mortgage before a specific date)

We’ll also talk you through what you can expect to happen from the day that your offer is accepted, through to the day you receive the keys to your new home!

In addition to information on your mortgage, you’ll get advice on the vast range of choices you have with any insurance you may need to consider. This can range from insuring your possessions in your new home to the protection of your income (and your mortgage payments) during any periods of prolonged illness. Our computer technology can research the market and provide illustrations (details of prices and the cover they offer) for just about any set of circumstances.

After the meeting, the real research is carried out

The information you provided, will allow us to do more in depth research in advance of any further meeting. This research looks into all of your lending options and at the very latest mortgage rates. Our computer software system, “Mortgage Brain” is updated daily to ensure the information you get is always correct.

With all of this information at hand, decisions can be made. These will be based upon the most appropriate payment option for you, not just what initially appeared to be the best rate. Whether yours is a new mortgage or a re-mortgage, we’ll always look for ways to save you money. We will produce a true cost comparison between any two schemes.

The second appointment

Now you’re ready to make your move…

When you’ve found the place you want, or made the decision to change your current mortgage deal for an alternative, you’ll need to contact Bright to schedule another appointment.

Depending on how long it has been since we last saw you, we’ll quickly go through your situation to ensure we’ve still got the right information and accounted for any changes in your circumstances or the amount you want to borrow.

Next, because the mortgage market is constantly changing, before we fill out any application forms, we will always check that our advice and recommendations are still relevant. This ensures that our recommendations are still completely in line with what you wanted and you are still getting the very best deal available to you.

Once these final preparations have been completed, you’ll be given a folder containing a number of options known as “key facts illustrations”. These give you detailed information about the mortgages we considered as well as the one that we have recommended. We’ll be ready to answer any questions you may have.

When you’re happy, it’s time to approach the lender and submit your mortgage application.

When all your documentation has been completed, it will be passed on to our dedicated Support Team. They will manage your application through the system, closely monitoring it every step of the way… ensuring it’s processed quickly and everything is in place well before you need to exchange contracts.

Supporting you throughout the process…

Once your application has been passed to our Support Team you’ll be assigned a personal manager. He or she will give you a call to introduce themselves. Having established your preferred contact method e.g. email or telephone up-dates, they will make sure you have their full contact details so you can get hold of them if you need to.

Before sending your paperwork to the lender it will have been carefully checked to ensure any costly delays are avoided. Although you will be allocated a personal manager, our system enables any member of the team to help you during periods of sickness or holidays. At the touch of a button, all your records and notes can be accessed by any support team member to give you a seamless service.

Monitoring the progress of your application

With most mortgage advice companies, you’ll have to play the role of go between. You’ll be the one constantly updating the estate agents, solicitors and anyone else involved. At Bright we appreciate you don’t want to spend your time going from pillar to post.

To take this hassle away, we’ll talk to them on your behalf… using our experience and knowledge of the mortgage market and application process to make sure it all runs smoothly.

Keeping you fully informed every step of the way

Moving can be a stressful time, so to make sure you’re not left in the dark we will contact you at the critical times, for example:

• When the lender has received your application
• When the credit check has been completed
• When the valuation is being arranged
• Sending and receiving of references
• Upon receipt of the mortgage offer

We have well established contacts within the lending and insurance organisations to help us to process your application with less hassle and in less time. We’ll feed back information at critical times during the process, either by phone or email, which ever is more convenient for you. During this time we aim to make sure your application is processed as quickly as possible with a view to the issue of your mortgage offer or, in the case of insurance, your acceptance terms.

Should any problems arise during the process - we are here to help you.

Once we’ve received your mortgage offer, we will continue to work with you to monitor when you have exchange of contracts and when you hope to complete the sale. This will enable us to update our records (especially your change of address) and start any protection policies for you at the right time. We will also be on hand to assist with any queries you have, once you’ve moved in successfully.

To the day you move in and beyond…

Getting the most of the mortgage incentives

So you’ve moved into your new home and you might think that’s the last you’ll ever hear of us. Bright are not like that. We will compare what is available to you once your original deal has run out. We will set review dates on our systems to check all the latest options and ensure you continue to enjoy a great mortgage with a great rate.

Comprehensive advice and guidance on mortgage protection needs

For most of us the largest financial arrangement we ever make is the mortgage we use to buy our home, however this is only one part of the house buying process. You want to ensure that, should the worst happen, you have sufficient funds to help clear the loan and provide security for the family.

Our qualified team are able to give you all of the guidance and advise you need on a vast range of protection products that you may wish to consider to run alongside your mortgage arrangements. These include:

Level term assurance

With this insurance you have a guaranteed amount paid to you over the time that you specify (the “term”), usually the same as the mortgage itself. Unlike some alternatives the benefit is that by paying a little extra now you can receive the same amount of benefit at any time during the term, even if the mortgage amount that you owe reduces. This extra benefit may well be extremely useful at a difficult time

Mortgage Protection/decreasing term assurance

With this type of cover the premiums are calculated at the beginning and will usually remain constant whilst the level of the protection decreases. This normally runs alongside a capital and interest mortgage (repayment) and provides the income to pay your mortgage.

Critical illness insurance

Although we are living longer there is an awareness of the fact that we are increasingly more likely to suffer from an illness during the term of our mortgage.

For this reason it is strongly recommended that you seriously consider the benefits of a critical illness plan. Plan holders benefit from a lump sum of money if they suffer from one of a number of critical events in their lives.

These include Heart attack, cancer, stroke etc. If you can imagine what an impact that any one of these would have on your family and meeting the mortgage payments could become very difficult.

Terms and conditions apply

Permanent Health Insurance

This type of cover helps you to replace the income you lose in the event that any accident or illness prevents you from working. These plans can be set up to complement any benefits that you might receive from your employer.

The simplest way to understand this cover is to think of it in terms of buying your own sick pay, so once the employers payments finish your own cover starts. This can provide you with the income you need until you are fit enough to go back to work and potentially can last until you were scheduled to retire.

Accident, sickness and unemployment insurance

As the name suggests if you suffer an accident or through sickness you are unable to work this policy is designed to protect your mortgage payments. This benefit can start paying out a fixed amount of money and is designed to last for a maximum of two years, so in comparison to the Permanent heath Insurance this is a short term plan.

Family Income Benefit

This provides an income to replace that lost in the event of an untimely death. The amount and the length of time that you wish to be covered for is chosen at the outset. This cover can represent excellent value when compared with more traditional types of cover.

Reviewable and guaranteed premiums

It is important to understand that there are so many options for you to consider. Our team of advisers will explain the differences between Guaranteed and Reviewable options on all of the aforementioned plans.

With Guaranteed cover the cost of the plan will remain the same throughout the term, with reviewable options the plan may increase in cost throughout the term. Some plans are reviewed each year and others every five. World events and claims experiences are the main factors that may change the cost of your plan.