The 10 best questions to ask your mortgage broker

The housing market remains volatile despite mortgage rates easing significantly, but they remain high compared to historic lows.

One way to tackle these challenges is to find an independent mortgage broker who can scan the whole market for the best deals.

You could also consider a ‘restricted’ or ‘tied’ mortgage broker, but they usually recommend mortgages from a smaller panel of lenders, so there is typically less choice, but fees may be lower.

What’s the difference between a mortgage broker and a mortgage adviser?

Not much, as the terms are used interchangeably in the UK. The only thing you need to consider is whether they cover the whole market or are restricted to fewer lenders.

The best questions to ask your mortgage broker

To help you feel confident and informed, here are the 10 best questions to ask your mortgage broker before you commit to a deal. 

1. Are you regulated? 

All mortgage brokers in the UK should be regulated by the Financial Conduct Authority (FCA).

You can check whether your broker is regulated by looking at the FCA register. 

Alternatively, you can search for a mortgage broker via Unbiased, which connects you to the best FCA-regulated mortgage broker for your circumstances. 

2. How much do you charge? 

Mortgage brokers may charge in different ways.

Some are fee-free and earn a commission from the lender, usually around 0.35% to 0.4% of the loan amount.

Others charge an upfront fee, typically around £500 or a percentage of the mortgage loan, such as 0.5% to 1%, while some have upfront fees and get commission.

If you’ll be charged, ask how much and whether this will apply to future remortgages.

It’s a good idea to consider the cost of other fees, such as mortgage arrangement and valuation fees, which vary by lender.

While not all brokers charge you, some will, especially if they specialise in complex cases such as people with poor credit or non-standard income.

It may still be worth paying fees for these brokers as they know what lenders are looking for, will check your documentation, and can give you the best chance of being accepted for a mortgage.

3. What’s the best type of mortgage for me? 

There are different types of mortgages with various pros and cons.

For example, a repayment mortgage means you pay a monthly amount over an agreed period until the capital and interest are paid off.

With an interest-only mortgage, you only pay off the interest each month and repay the capital at the end of the mortgage term. These are typically harder to get, as you will have to prove you have a sensible repayment strategy in place.  

These aren’t the only mortgages you can choose from.

Your mortgage broker should be able to recommend the right one for you based on your circumstances and future plans. 

4. How many lenders can you access? 

If you’re looking for the most competitive deal, a whole of market broker can access all lenders and products in the market, while single-tied ones will only have access to one lender.

Multi-tied brokers typically have access to a panel of lenders but may not be able to access all deals.  

5. How do I need to save to buy my home? 

The amount you’ll need to save depends on how much your property is worth and the percentage of that value the mortgage provider is happy to lend (known as the loan-to-value or LTV). 

If you’re a first-time buyer, you may be able to borrow up to 95% LTV, but if you have a bigger deposit, you’ll likely be able to access more competitive deals.

On top of the deposit, make sure you can also pay other fees, such as moving and legal costs.  

6. How much can I borrow? 

While a deposit will help you buy your home, if your mortgage lender won’t offer you enough, you won’t be able to buy it.

A mortgage broker will assess your circumstances, including your salary, monthly spending and credit history, to determine how much you’ll be able to borrow.

Generally, most lenders cap the amount you can borrow at around four and a half times your annual income, so it's important to understand this limit when planning your home purchase.

Some mortgage lenders have changed their caps for first-time buyers, with Nationwide, for example, offering to lend up to six times your income (with a lower minimum annual salary). However, it’s worth seriously considering whether you should borrow more and seek advice first.

You can also check how much you could afford to borrow using our free mortgage calculator.

7. What is the mortgage interest rate, and will this change?

If you’re going for a fixed-rate mortgage, the interest charged will not change until the mortgage term ends. Unless you choose a new deal at this point, you will bee moved to a standard variable rate (SVR), which typically has a higher interest rate.

Other types of mortgages, such as tracker mortgages, are affected by the Bank of England’s base rate, so your monthly payment can vary over the term of the mortgage.  

A mortgage broker can advise on the best mortgage type for your needs. 

8. Are there any restrictions on my mortgage? 

This is vital to ask, especially if you’re considering moving to another property in the future.

For example, is your mortgage portable? If so, you would be able to move your mortgage as is to a new property.

Early repayment charges (EPCs) are also worth asking about, as you could get charged for ending your mortgage before the term is up or for overpaying too much.  

9. Can you help me with other aspects of the house-buying process? 

Some mortgage brokers may offer help with other things, such as finding life insurance or buildings insurance products.  

It’s a good idea to ask whether the broker gets a commission for recommending any products and how much this is.  

10. What documentation do I need, and how long will it take to get my mortgage approved? 

Mortgage brokers may ask for documentation such as payslips and proof of identity. 

By ensuring you have these ready, you can help get your mortgage application processed faster.

The process can vary depending on your circumstances, but your mortgage broker may be able to let you know roughly how long it will take. 

Get expert mortgage advice

Finding the right mortgage broker involves more than just selecting the lowest fee or the most accessible service.

By asking these 10 questions, you can ensure that your broker is regulated, transparent about fees, and capable of providing tailored advice that suits your financial situation.

Understanding how much you can borrow, what types of mortgages are best for you, and the potential restrictions on your mortgage will help you make informed decisions.

Let Unbiased match you with a qualified mortgage broker who can help you navigate the complex landscape and secure the right deal tailored to your needs.