10 questions to ask your mortgage broker

10 questions to ask your mortgage broker
Christina Hoghton
Written By:
Christina Hoghton

A good broker is worth their weight in gold, but how do you find one?

A mortgage broker can make the difference between you buying the home of your dreams and missing out. Between an affordable mortgage and one that costs you over the odds. Between a smooth process and the most stressful time of your life.

That might sound a bit dramatic, but, when you are making what’s probably the biggest purchase of your life, you want someone on your side with all the knowledge and all the experience.

That’s where a great broker comes in.

But how do you find a good one?

Lack of knowledge

In a recent survey of 500 UK homeowners, David Wilson Homes found that 25% were unsure what to ask a mortgage adviser.

For those who did know, their most important question was, “Are you an independent adviser?”

More than half (53%) believed that asking the right questions could have led to a better mortgage deal.

That’s why the builder has pulled together the core questions to ask a potential broker to find the right partner for you.

1. Are you an independent adviser?

If your adviser is independent, they should cover the full market, meaning they can find your mortgage from all the available options.

By contrast, advisers tied to a specific lender won’t necessarily present you with the most suitable deals, just the ones associated with their lending partners.

2. What are your qualifications?

Ask this as early as possible. Mortgage advisers must be qualified to supply advice, so always check. They must have a qualification recognised by the Financial Conduct Authority (FCA), such as the Certificate in Mortgage Advice & Practice (CeMAP).

3. How do you charge your clients?

This will depend on the adviser, with some charging you a set fee for advice and others receiving a commission from the lender. Some charge you a fee and receive commission.

4. Can you help me with any other products?

As a condition of getting your mortgage for your new home, you must have buildings insurance in place. Your mortgage adviser can potentially help you secure a good deal on this too, but always compare their offer against the market rate.

5. What are the different types of mortgages available?

There are numerous mortgage types on the market, from fixed rates to trackers, interest-only deals to repayment mortgages.

Each comes with different interest rates, fees and charges and different deal periods. It is important that your adviser explains everything thoroughly, illustrating how specific mortgages could work for your situation.

6. How long will it take?

This will differ depending on your financial situation and chosen lender. Your adviser will be able to give you an idea early in the process.

7. How much can I borrow?

Several factors play a part here, including your deposit, income, and current financial situation. You will need to bring specific documentation to your first meeting to enable your adviser to make an informed decision and establish the right way to advise you.

8. Why is this mortgage best for me?

Asking this question will provide context around why your mortgage will work for your financial circumstances.

9. What will my monthly repayments be?

There are several mortgage types. The main ones are repayment, interest-only, and combined repayment and interest-only; a good adviser will choose the right one for you. Always check you’ll be able to keep on top of the repayments. The amount you pay will depend on the mortgage value, the length of the term, and the interest rate.

Before speaking to an adviser, there are plenty of online mortgage calculators that can provide some indication of your monthly repayments and what you can afford.

10. Can I have a full breakdown of costs?

Make sure you’re aware of any other associated costs with your mortgage. You don’t want to be hit with unexpected fees down the line, which could eat into your budget.

Related: Mortgage choice improves as fixed rate mortgage costs rise