How to choose a mortgage adviser in the UAE

If you are buying or remortgaging a home, then a mortgage adviser can help you find the best deal.

This is even more important if you are looking to buy land, commercial property or investing in buy to let as the information you need is sometimes hard to find.

Mortgage advisers come with several job titles - like brokers and consultants - but they are all the same.

You do need to keep an eye on what type of mortgage adviser you are talking to - some are independent, while others can only discuss specific products with you.

Below, you will find out how to tell the difference, what to expect to pay for mortgage advice and other important information you might need to consider.

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Finding a mortgage adviser in the UAE

Advice about taking a mortgage out on your home or buy to let property should not be hard to find in the UAE.

Most financial advice firms, banks and building societies will offer to arrange loans - and so will many estate agents, letting agents and accountants.

The standard industry qualification for a mortgage adviser is the Certificate In Mortgage Practice and Advice or CeMAP.

But not all mortgage advisers offer independent advice - they come in three types:

·      Independent mortgage advisers - These advisers are not ‘tied’ to any provider, so can give advice about any production the market.

·      Multi-tied advisers - A hybrid independent and tied adviser who cannot give whole-of-the-market advice but can discuss products from more than one provider

·      Tied advisers - A tied agent can only discuss the products and services of a single provider, ignoring the rest of the market.

Basically, if there are better products and services out there, tied advisers cannot tell you, which means you could end up with a deal that does not best meet your needs.

You can find out if you're eligible for a mortgage in the UAE and generate free quotes here.

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Questions to ask you mortgage adviser

Pick two or three advisers in the UAE, such as your bank, an independent mortgage broker and a popular bank or building society mortgage brand.

Ask them all the questions listed below and choose the one that best meets your requirements:

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Do you have CeMAP Level 3 or above?

The answer should be yes, or the adviser is not suitable to arrange a mortgage for you.

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Are you independent or tied?

This will reflect on the mortgages the adviser can offer you - a tied agent has a limited number of products that do not necessarily come with the best terms and rates.

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How much do you charge?

Some mortgage advisers may charge a fee-based on the product or size of the loan. Others will not make a charge, but the lender will pay them a commission or ‘procuration fee’.

They should all offer a key facts illustration if they recommend a mortgage, which outlines how they arrived at the decision and if they are paid commission by the lender.

In 2019, the key facts document is replaced by a European Standard Information Sheet (ESIS), which contains some extra information about the adviser and the loan.

The average fee charged by a mortgage adviser is around AED10,000.

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Why go to a mortgage adviser in the UAE?

You do not have to go to a mortgage adviser to find a home loan, but discussing your requirements and budget with a professional can have some advantages:

·      Save time - The adviser does the leg work of checking for the best deal

·      Exclusive access - Some lenders offer better terms through brokers that cannot be sourced anywhere else

·      Help with an application - The adviser will fill in the forms for you

·      Finding the best deal - A mortgage adviser should find the best deal that matches your personal needs

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When should you ask for mortgage advice?

It’s a good idea to speak to a mortgage adviser before you look for a property.

Having a quick discussion about your finances and personal profile will help you set a budget and find you an offer in principle.

Once you know how much you can borrow, you can start looking for a new property confident that you can make an offer and complete the purchase.

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Help with a remortgage

Most people think of talking to a mortgage adviser when they buy a home, but if you already own a property, they can also help you find the best deal if you want to remortgage.

Don’t just go to your mortgage lender as lots of other lenders offering great deals are out there and you may not have heard of them.

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Next steps

If you're looking for mortgage advice in the UAE, you've come to the right place.

Navigating the world of mortgages can be a daunting task, especially in a foreign country. Whether you're a first-time buyer or looking to refinance, it's important to seek professional advice to ensure you're making the best financial decision for your future. From understanding the local property market to finding the best mortgage rates, getting expert advice can make all the difference.

So, if you're in need of mortgage advice in the UAE, don't hesitate to reach out to a trusted mortgage adviser who can guide you through the process.

Alternatively, you can generate a free mortgage quote online.

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