Whether it’s the first time you’ve used a mortgage broker or not, understanding what to ask them will put you in a better position from the start of your journey. The questions in this guide will help you find a suitable mortgage advisor who has the correct resources and lender access to ensure you get the right deal. The guide will also make you feel more confident and clued up when talking with your mortgage advisor and making crucial decisions together. We’ve split the questions into two sections – firstly, questions you may want to ask when looking for the right mortgage broker, and secondly, questions you may want to ask during the application process itself. If you want to continue preparing for your mortgage application after reading this guide, we recommend you also read our guide, ‘What Questions Will I Be Asked in a Mortgage Interview?’
Questions to Ask a Mortgage Broker Before Deciding to Use Them
“Are you regulated by the FCA?”
Due to the financial nature of the advice we provide, mortgage brokers in the UK are legally required to be regulated by the Financial Conduct Authority (FCA). This is to ensure that the advice you receive as a customer is fair, transparent, and always in your best interests.
Although you might assume it’s a given, there are firms out there that do not have the correct authorisation, and there are also more sinister parties running scams. Therefore, it’s prudent to check that the mortgage broker you are speaking with is officially regulated by the FCA. We advise that you not only ask them, but also check for yourself using the Financial Services Register.
Mortgage advisors can either be regulated directly by the FCA or be appointed representatives of a firm that is authorised by the FCA. Having been providing trusted mortgage advice for over 30 years, and winning multiple awards in the process, you can rest assured that all our advisors at Michael Usher Mortgage Services are regulated by the FCA. You can find details of our regulatory framework in the footer of our website.
“What qualifications do you have?”
Aside from being regulated by the FCA, mortgage brokers in the UK are also legally required to hold a recognised qualification. The most widely recognised and industry-standard qualification in the UK is the Certificate in Mortgage Advice and Practice (CeMAP). All our advisors at Michael Usher Mortgage Services are both regulated by the FCA and are CeMAP-qualified.
“Are you independent and able to offer deals from across the market?”
Be aware that some mortgage brokers are affiliated with just one lender or a small number of lenders. These brokers will only recommend deals from their affiliated lender(s), meaning you may not be getting the best deal available to you.
There are hundreds of mortgage lenders in the UK, each with different criteria. As with your car insurance or mobile phone contract, it makes sense to shop around to find the right deal for your specific circumstances. By doing this, you may be able to save money with a lower rate, borrow more, and get a more flexible mortgage.
With all this in mind, we recommend you get an idea of how many mortgage lenders your broker has access to when you first speak with them. Here at Michael Usher Mortgage Services, we’re not affiliated with any particular lender. This means we’re able to search a wide range of deals from across the market to ensure you fully explore your options before making a decision.
“How long will it take to arrange my ‘Mortgage in Principle’?”
A ‘Mortgage in Principle’, otherwise known as an ‘Agreement in Principle’ or a ‘Decision in Principle’, is a pre-approval letter from a mortgage lender that states how much they would likely be willing to lend to you. This will be based on some initial information, so it can be given to the borrower whilst the main application is being processed. Having a ‘Mortgage in Principle’ can make you more attractive to sellers and may also speed up the buying process. It’s not legally binding, but it can strengthen your buying position whilst you’re waiting for your actual mortgage to be approved.
We recommend you ask your mortgage broker how long it will take them to organise a ‘Mortgage in Principle’ for you, so you can start making strong offers as soon as possible. Here at Michael Usher Mortgage Services, we can organise a ‘Mortgage in Principle’ within 24 hours once we have the relevant information from you. You can learn more about how this works by reading our guide, ‘What’s the Difference Between a Mortgage in Principle and a Mortgage Offer?’
“How long will it take to arrange my mortgage?”
Unlike a ‘Mortgage in Principle’, arranging your actual mortgage can take some time. This is because the mortgage lender may require more information and documents from you, and then carry out extensive affordability and credit checks to ensure you meet their lending criteria. They will also usually carry out a valuation of the property you hope to buy, as this is an important factor in their lending calculation.
Although the time it takes to arrange your mortgage is largely in the hands of the lender, there are things your mortgage broker can do to ensure the process is completed as quickly as possible. For example, here at Michael Usher Mortgage Services, we have dedicated mortgage paraplanners who proactively liaise with your lender, estate agent, and solicitor to help keep the home-buying process on track. We usually complete a mortgage application within just 2-4 weeks, so if your broker says it will likely take longer than that, they may not have the necessary resources to be as hands-on as we are.
“What documents and information will you need from me?”
Exactly what documents and information you’ll need to provide will depend on your situation, so it’s a good idea to ask your mortgage broker about this upfront so you can start preparing for your mortgage meeting. To give you a brief overview, some of the documents you may need to provide include photo identification for all applicants, proof of address, proof of income, bank statements, proof of deposit, and information about the property you hope to buy.
“Will you be on hand to guide me through the whole mortgage process?”
Not all mortgage brokers have the same resources or work ethic as we do. It may be prudent to ask your advisor what the relationship will look like, what methods of contact they allow, how available they will be, and whether they will be out of the office for a significant amount of time during your application. Here at Michael Usher Mortgage Services, we have a team of experienced advisors on hand to guide you through the process from start to finish. If your advisor is going away at any point, another of our advisors will keep your application moving along and will be contactable. You can speak with our team face-to-face by visiting our office on Frimley High Street, or by phone, video call or email. We also have a team of mortgage paraplanners who assist our brokers and clients throughout the process, as we’ll discuss next.
“Do you have paraplanners or assistants who will help to push my application along?”
Many mortgage brokers work alone, either as a sole trader or in a larger organisation that doesn’t employ any assistants. This can limit the amount of time and resources they are able to dedicate to each customer, which may lead to a slower and more fragmented application process. At Michael Usher Mortgage Services, we put our clients first, which is why we assign each of our clients a dedicated paraplanner who will work in the background to ensure your application is completed as quickly as possible. You will also be able to liaise with your paraplanner as well as your broker throughout the process.
“Are you experienced with self-employed mortgage applications?”
If you’re self-employed, it’s a good idea to find a mortgage broker who is well-versed in self-employed mortgage applications and has access to suitable lenders. The criteria of lenders can vary widely when it comes to self-employed applications, especially when it comes to assessing and proving your income. We recommend asking your broker if they have the correct level of expertise for this kind of application and how often they work with self-employed customers. Here at Michael Usher Mortgage Services, we’ve been helping self-employed individuals apply for mortgages for over 30 years, and we have access to a wide range of suitable lenders.
“Can you also help me get the right insurance?”
Insurance is often an afterthought when it comes to mortgages, but ignoring this crucial step could put your home and family at financial risk. Most of us insure our cars, gadgets, and holidays, so why overlook what is most likely your largest asset? We’re not just talking about ‘Buildings and Contents Insurance’ here. There are also policies that can allow families to continue paying their mortgage to protect their home in the event of an illness or death, such as Life Insurance, Critical Illness Cover and Income Insurance.
Due to FCA rules, mortgage brokers now have a legal duty to ensure mortgage holders fully understand the importance of taking out suitable insurance to protect their homes and families. However, some mortgage brokers may just offer advice in this regard, but not help in actually finding and organising the right policies. Here at Michael Usher Mortgage Services, we’re serious about protecting our customers. That’s why we provide a FREE Insurance Service where we offer advice, find suitable insurance products, and arrange insurance policies on your behalf.
“Do you charge a fee, and if so, what do I get for it?”
If you want a more personal, dedicated and hands-on service, you’ll likely want to find a mortgage broker who charges a fee to the customer. Charging a fee allows brokers to spend more time and resources on each customer to deliver a better service. For example, as mentioned earlier, we employ a team of paraplanners who proactively liaise with your lender, estate agent, and solicitor to ensure your application runs as smoothly and quickly as possible. And you’ll have an advisor and paraplanner on hand to guide you through the process from start to finish. The fee also allows us to put our customers’ best interests first when finding the right deal, as we’re not solely reliant on commissions to generate income. Many fee-free mortgage brokers try to minimise running costs, often at the detriment to customers. For example, we run traditional offices that you can visit in person Monday to Saturday for those who prefer a face-to-face service. We also offer a free consultation, where you can ask any questions and get some initial advice before deciding to use us.
Questions to Ask a Mortgage Broker During the Mortgage Process
“What type of mortgage is right for me”?
One of the main benefits of using a mortgage broker is to ensure you get the right product for your situation and plans. Getting this wrong could be expensive down the line or even prevent you from moving house when you need to. There are many different categories of mortgages, and many products fit into more than one of these. For example, fixed-rate mortgages, tracker mortgages, repayment mortgages, interest-only mortgages, offset mortgages, Buy To Let mortgages, Help to Buy Scheme mortgages, and more. Then there are further decisions to make once the type of mortgage has been decided, such as how long to fix your mortgage for and whether to choose a deal with an upfront fee or not. It’s important that your mortgage broker explores all your options and explains the benefits of their recommendation relevant to your specific circumstances.
“What deposit will I need?”
Although it’s common to approach a mortgage broker once you have saved for a deposit, you may want to ask if they recommend saving a bit more to qualify for a better interest rate. As a rule of thumb, for residential mortgages, having a 10% – 20% deposit should open you up to a competitive rate, but having a 25% deposit or more could make the best deals available to you. That being said, people do get mortgages with just a 5% deposit, especially First Time Buyers or those using a Help to Buy Scheme. Understanding how your deposit stacks up and how close you are to qualifying for a better deal is something your mortgage broker should be able to help you with.
“How much will I be able to borrow”?
Finding out the maximum you’ll be able to borrow is often not possible if you are using a mortgage broker who only has access to a limited number of lenders. At Michael Usher Mortgage Services, we’re not affiliated with any specific lenders, so we’re able to search a comprehensive range of deals from across the market to see how much you could borrow from different lenders.
“Am I very likely to be accepted for the deal you’ve chosen?”
This is a very important question, and again, it’s one of the many benefits of using an experienced mortgage broker. This is because being rejected for a mortgage is not only a hassle and a waste of time, but it can also damage your credit score. This, in turn, can make it more difficult to get a mortgage on the second attempt. At Michael Usher Mortgage Services, we fully understand the criteria of each lender, so we’re able to only recommend deals that you’re very likely to be accepted for to protect your credit score.
“Is there a product fee?”
Some mortgage deals offer a lower interest rate but come with an upfront fee. Whether or not you should choose one of these deals depends on whether it’ll save you money in the long term or not. Your broker should be able to do the calculations necessary to work this out, but you may want to ask for an explanation so you can fully understand whether it’s cost-effective to choose a deal with a fee or not.
“Is there an Early Repayment Charge and how does it work?”
An Early Repayment Charge (ERC) is a fee you may be liable for if you want to pay off your mortgage or switch to a new deal before the introductory period ends. It’s important to ask your broker to explain whether your deal has an ERC and how it works. For example, the ERC may decrease the further you are into your introductory period, or it may stay at a flat rate throughout. You can learn more about ERCs by reading our guide, ‘What is an Early Repayment Charge and When Do I Have to Pay It?’
“How much can I overpay my mortgage each year without being charged?”
It’s always recommended to overpay your mortgage if you can afford to, as this can reduce the amount of interest you pay overall and allow you to be mortgage-free sooner. However, most products limit the amount you can overpay each year before you get charged an Early Repayment Charge. It’s crucial you understand these limits so you don’t reduce the benefits of overpaying by incurring a hefty fee. Typically, most lenders allow you to overpay up to 10% of the balance of your loan per annum.
“Am I able to port my mortgage and how does this work?”
Many mortgage deals allow you to move the product to a new property if you decide to move within the introductory period, known as ‘porting’ your mortgage. This feature gives you more flexibility in case plans change, allowing you to move house without incurring an Early Repayment Charge. If you think you may need this flexibility, be sure to tell your mortgage broker and ask them to explain how porting works for your specific deal. To learn more about porting a mortgage, please read our guide, ‘Should I Port My Mortgage’.
The Bottom Line
Knowing what to ask when looking for a mortgage broker could help you get a better mortgage deal. For example, some brokers only have access to a limited number of lenders, so choosing an advisor that has access to the wider market could help you explore more options and potentially find a better deal. The guide will also help you find a broker who can offer a more hands-on service and potentially get your mortgage arranged quicker.
After choosing your mortgage broker, you then need to choose the right deal, so understanding what questions to ask at this point will put you in a better position when making those big decisions. For example, what type of mortgage is most suitable for your situation and why? Could you save money in the long run by choosing a product with an upfront fee? If your plans change, will you be able to move house during your introductory period without incurring a hefty fee?
We hope that after reading this guide, you feel more confident embarking on your mortgage journey. And remember, if you want to continue educating yourself on what lies ahead, please also read our guide, ‘What Questions Will I Be Asked in a Mortgage Interview?’
At Michael Usher Mortgage Services, we’ve been helping people throughout Surrey, Hampshire and Berkshire for over 30 years! We’re not affiliated with any particular lender, so we can access a comprehensive range of mortgages from across the market to find a deal that suits your needs. We’ll guide you through the process and liaise with your lender, estate agent and solicitor to ensure your application goes as smoothly as possible. We can also help protect your mortgage with our FREE Insurance Service.
Talk to one of our friendly mortgage advisors for free to get going quickly. Our head office is on Frimley High Street, but we can also help you remotely via phone or video call if you’d prefer. We look forward to chatting with you!
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Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The precise amount will depend on your circumstances but will be agreed with you before proceeding.
