Mortgage broker vs financial advisor
We all might need help looking after our personal finances from time to time.
Both mortgage brokers and financial advisors offer valuable guidance, but their areas of expertise are very different. In this guide, we break down the differences between a broker and a financial advisor to help you make the right choice.
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Author - Aidan Darrall Editor - Stuart Bowman
Last reviewed on 25th February 2025
In this article:
Is a mortgage broker a financial advisor?
No, a mortgage broker is not a financial advisor. A mortgage broker is qualified to provide advice on mortgages. This means they’re the go-to experts for anything to do with mortgage products, rates, terms and lender criteria.
If you’re looking for advice beyond the world of mortgages, you’ll need the help of a financial advisor. A mortgage broker is not qualified to provide guidance on other areas of personal finance, such as investments, setting up a pension or tax strategies. Unless, of course, your broker happens to have additional qualifications that allow them to offer these services.
What can a mortgage broker help with?
A mortgage broker specialises in mortgages. They have an impressive amount of knowledge of the mortgage market and stay up-to-date on the latest mortgage trends, mortgage rates and lender policies.
A broker’s role is to act as an intermediary between you and the mortgage lender. They will assess your financial situation, compare mortgage products and recommend the right option to suit your circumstances.
Brokers go beyond offering advice too. They provide constant support and assistance throughout the process. For example, your broker will prepare and submit your mortgage application on your behalf to make sure you have the best chance of success. They’ll also liaise with your lender, estate agent and solicitor to ensure the process runs smoothly.
What does a financial advisor do?
A financial advisor provides a broad range of financial planning services, usually focused on building wealth. They’ll advise on things like:
Investments
Pensions
Insurance
Tax planning
Estate planning
Retirement planning
General wealth management
So, if you need help making financial decisions, having an advisor on your side can be a big help. They’ll help you find the right solution to make the most of your money.
Can a financial advisor help me with my mortgage?
Yes and no. Only financial advisors with the relevant qualifications (usually the Certificate in Mortgage Advice and Practice or Certificate in Mortgage Advice) will be able to advise you on mortgages. Others might only be able to provide more general advice on your finances such as advising on ways to save up for a house deposit or how to budget for buying a house.
However, even qualified financial advisors are unlikely to have the same level of mortgage knowledge.
A trusted mortgage broker will not only help you find the best deal for your circumstances - they’ll also be by your side from start to finish, providing the support you need during a potentially stressful time.
Remember, you don’t have to work with an advisor at all. You also have the option to apply for a mortgage yourself by going directly to the lender. However, while this might seem like a straightforward option, you could miss out on some of the most competitive rates if you don’t compare the market thoroughly.
Can a financial advisor or mortgage broker help me with my mortgage insurance?
Many mortgage brokers may also be qualified to advise on protection insurance, such as life insurance, income protection, critical illness cover and family income benefit. However, professional protection advisors are experts in the world of insurance, and so may be best placed to support you.
Here at Mojo Mortgages, our specialist protection advisors hold a Certificate in Mortgage Advice and Practice (CeMAP), Certificate in Protection (CertPro) or Financial Protection (R05) qualification. They really know their stuff when it comes to the insurance market, and will work to find a solution that’s tailored to you and your circumstances.
While a financial advisor may technically be qualified to offer advice on protection insurance, unless you have a particularly complex situation, it might not be cost-effective to use them. Many specialist protection advisors offer fee-free services to customers as they receive commission from the cover provider instead.
Differences between a mortgage broker and a financial advisor
While both mortgage brokers and financial advisors play crucial roles in managing your finances, they have very different areas of expertise.
Mortgage broker | Financial advisor |
|---|---|
Specialises in providing mortgage-related services, including comparing and recommending mortgage options | Provides more general financial planning advice across a broader range of topics, from pensions to investments |
Goes beyond simply providing advice. A broker will offer practical support, such as helping to prepare and submit your mortgage application | Will only provide advice. A financial advisor won’t support you in actioning their recommendations |
Must hold a CeMAP or Certificate in Mortgage Advice qualification | Must hold a level 4 qualification in financial advice which is recognised and approved by the Financial Conduct Authority. Financial advisors must also have a Statement of Professional Standing (SPS) |
The number of lenders a broker works with will depend on whether you choose a tied broker or whole-of-market broker | Whether a financial advisor can recommend products from across the market, or just from specific providers, will depend on whether you choose an independent or restricted advisor |
Can be a fee-free service, depending on whether the broker is paid via lender commission or client fees | Almost always a paid-for service. Usually paid via hourly rate, a flat fee or percentage of assets managed |
Best for those needing tailored advice and support throughout the mortgage application process | Best for those seeking long-term financial planning support |
"Remember that not all mortgage brokers are created equal, so it’s important to do your research to find the right advisor for you. If you’re looking for a broker with a wider scope of knowledge, make sure you choose a whole-of-market broker who isn’t restricted to recommending products from just one lender or a small panel of lenders."
Stuart Bowman, Mortgage Expert
FAQs
The choice between a mortgage broker and a financial advisor depends on your financial goals, so it’s important to consider your specific needs before making a decision.
A mortgage broker is the best option if you are thinking about buying a property for the first time, moving home or remortgaging and need help navigating the mortgage market
A financial advisor is the right choice if you need guidance on broader financial matters such as investments, retirement planning or general wealth management
In some cases, working with both a mortgage broker and a financial advisor can be beneficial. For example, a broker can recommend the most suitable mortgage product for you while a financial advisor will make sure it fits with your overall financial strategy - something a broker wouldn’t necessarily have sight of.
They’re usually cheaper. Financial advisors often charge much higher fees comparatively. Some mortgage brokers, like Mojo Mortgages, even offer a fee-free service as they make their money by charging lenders commission
They’re more experienced. Mortgage brokers know the market inside out and have day-to-day experience of dealing with unique and often complex cases. Financial advisors, on the other hand, have a broader range of knowledge across different areas of personal finance so may not have as much mortgage-specific experience
They have lender knowledge. Whole-of-market brokers are able to compare thousands of products across multiple different lenders - they have in-depth knowledge of lender requirements and stay up-to-date on any rate changes
They can help with more complex situations. A broker is a mortgage specialist. So, if your financial situation is a bit more complicated (you’re self-employed, for example), a broker may be best placed to find a lender who’s most likely to accept you
They provide additional support. You may find a financial advisor who’s qualified to give mortgage advice but, even then, they likely won’t go beyond assessing your situation and recommending a product to suit you. An expert broker will provide practical support during the application process, as well as being on-hand to answer any questions throughout
Read our guide if you’re looking for even more reasons to use a mortgage broker.
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