What does 'Independent Financial Adviser (IFA)' mean when buying a property?
Find out what Independent Financial Adviser (IFA) means when you are buying a property. 'What does Independent Financial Adviser (IFA) mean?' plus over 150 other property related terms and jargon in plain English
Independent Financial Adviser (IFA)
A financial adviser is a person who can help you find the best mortgage deal on the market for your purchase.
A financial adviser who works for a particular bank or lender will only offer you products from that bank or lender. An Independent Financial Adviser (IFA) will be able to offer you mortgages from a range (but not necessarily all) banks or lenders.
Note that financial advisers do not need any qualifications and they are only loosely regulated so their quality varies substantially.
Different advisers also have different offers, even from the same bank, so you should aim to meet with as many advisers as you do estate agents.
A good financial adviser will not only show you offers but also assist you in taking your mortgage offer all the way through to a confirmed loan on a particular property, smoothing out issues a long the way.
Some will charge you a fee which can be a set amount or a percentage of the mortgage value, others offer their services to you for free because they get paid a commission by the mortgage lender. There are pros and cons to both these set ups.
I use financial advisers to secure mortgages most of the time because they can generally get a better deal from a lender than I can as one individual (they deal in volume) and if there are any unexpected issues that happen while I'm trying to purchase a property I have someone batting for me. They often have insider contacts at the lender that will treat my application as more than just another number.
To learn more about financial advisors and how you can use them to your advantage when purchasing a property pick up a copy of my ebook How to Really Buy a Property.