15 important questions to ask your mortgage broker

If you work with a mortgage broker, you can be completely confident you’re being recommended the best mortgage deal for your circumstances.

These individuals aren’t just responsible for hunting down the lowest rates. There’s much more they can do to ensure you get the most suitable deal for your circumstances.

Choosing the wrong product could cost you thousands of pounds over the course of a mortgage term, so it’s worth enlisting expert help with this decision. Learn more about how to choose a mortgage broker and the pros and cons.

What type of mortgage is best for me?

If you’re unsure about the differences between fixed-rate mortgages, discount mortgages or tracker mortgages, a mortgage broker can explain this to you and help you work out which option is likely to be the most suitable.They can explain the ins and outs of rarer mortgage types, such as offset mortgages or buy-to-sell mortgages and point you towards the lenders offering the best deals here.

A mortgage broker will also have detailed knowledge of the various schemes available to help first-time buyers onto the property market and will recommend these to you if you’re eligible.

Why is this the best deal for me?

An advantage of working with a mortgage broker is that they’re able to explain the ins and outs of the mortgage world to people who don’t understand it. This can give you the peace of mind of knowing you definitely got the best deal.

So, you shouldn’t be afraid to ask why one deal is better than the other. It’s part of a mortgage broker’s job to explain this to you.

Will I be approved for this product with bad credit?

Mortgage brokers have a detailed knowledge of lenders’ eligibility criteria, which can be very useful for applicants with bad credit. Instead of wasting your time (and further harming your credit score) by unsuccessfully applying to several lenders, you can have a mortgage broker recommend the lenders most likely to approve your application.

Are there any restrictions on this mortgage?

It’s important to know what you can and can’t do once the mortgage has been finalised. Can you port your mortgage? Can you take a payment holiday? Do you meet its eligibility criteria? These are all things a mortgage broker should explain to you.

How much can I afford to borrow?

Although many buyers are aware of the ballpark figure that’s suggested people can borrow for a mortgage (around four to five times your annual income), this will vary depending on your choice of lender and financial circumstances.A mortgage broker will have a more detailed view of the amount you can borrow from specific lenders.

They’ll also be able to talk you through the additional costs involved with buying a house, including the one-off fees associated with the mortgage.

Do you cover the whole of the mortgage market?

There are three main types of mortgage broker: Some are tied to specific lenders, some look at details from a limited list of lenders, while others claim to be “whole of market”. However, even some “whole of market” lenders don’t cover everything. Many of these will exclude lenders that only take direct applications. It’s important to ask whether the lenders truly cover the whole of the market or not.

Will you recommend another lender that’s not on your list?

If you’re not working with a ‘whole of market’ broker, you might not end up with the best deal.

That’s why it’s important to ask if the broker will recommend a better deal that it doesn’t have access to.

How much do you earn in commission?

If a mortgage broker works on a commission-basis, there’s a danger that they could end up recommending the best deal for their pockets, rather than yours.

For that reason, it’s important to know whether they earn commission, how that works and how much they’re set to earn from your recommendation.

Can you show me a whole list of my mortgage options?

Sometimes, a mortgage broker will reveal its #1 recommendation only, or maybe its top three.

To be sure you’re being offered the best deal for you, it’s worth asking for a complete list of the available options.

How much do you charge for your services?

Some mortgage brokers charge a fee or work on commission or a combination of both. It’s important to understand how their payment structure works.When you consider the amount of time and money you’ll save by choosing the right mortgage first time, it’s hard to argue against these fees.

When do you charge your fees?

Some mortgage brokers, you won’t have to pay a penny until the mortgage is finalized. Others might charge a fee at an earlier stage.

What is included in the service you offer?

It’s important to know what your broker will do, and what tasks you’ll still need to complete yourself.

Some brokers will handle all the admin, including chasing down lenders if there’s a delay, until the deal is done. Others will find the best deal for you, and maybe submit your application, but little else.

When will you be available?

You might want to be able to contact your broker at all hours, but this isn’t always possible?

Some work traditional office hours only. Many won’t be available during evenings and weekends.

Do you invest in property yourself?

This question might be particularly important for buy-to-let property investors. Many would prefer to work with an individual who also understands the ups and downs of property investing.

Can you explain what this means?

If a mortgage broker is using a lot of jargon, you have every right to ask them to explain themselves with more clarity.

A key advantage of using a mortgage broker is having the peace of mind of knowing you’re making the right move, so they should be happy to explain anything you don’t understand.