What is a mortgage broker? A mortgage broker employs a team of mortgage advisors who have the goal to match borrowers with the best possible mortgage option for their financial situation. Mortgage brokers have in-depth knowledge of the whole mortgage market, including interest rates, products, and lending criteria.
It always makes sense to seek the help of a mortgage broker to find and arrange your mortgage. They possess the knowledge and skill necessary for securing the best possible mortgage deal that suits your individual circumstances. Even if you are an experienced property investor or purchasing a home for the first time, every situation is different; a qualified advisor can match up all of your details with just the right lender so that you get access to the best mortgage for you.
Questions to ask a mortgage advisor
To ensure that you make a well-informed decision when seeking the help of a mortgage adviser, we have outlined seven essential questions to ask them so that you can gain clarity over all relevant details before committing.
1) Are you a regulated broker?
When searching for a mortgage adviser, the initial and most significant inquiry to ask is if they are regulated. For any UK-based advisers providing advice on mortgages, this means they must be registered with the Financial Conduct Authority (FCA) or an agent of a regulated firm. Verifying their registration in the FCA register will help verify their compliance status. Additionally, your prospective mortgage adviser should also inform you from the outset how much they charge for services as well as what range of products they offer related to mortgages.
2) Are you whole of market broker?
Are you in the market for a mortgage? Consider using a whole-of-market broker! These brokers are not affiliated with any lender or product, granting them the freedom to provide impartial advice about which mortgage deals work best for your individual needs. With access to virtually every corner of the mortgage market, these experts can help you find and secure an optimal mortgage product with the lowest mortgage repayments – one that fits both your budget and lifestyle.
Did you know there are around 100 UK mortgage lenders? A whole market broker can assist borrowers in identifying the most suitable mortgage product available on the market by giving them access to many lenders and products.
Not only will this encompass mortgage rates and the best deal unavailable for regular clients, but these brokers provide unbiased mortgage advice based on each individual’s specific needs and situation before recommending any product.
A broker’s main aim is to keep the monthly payments as low as possible and also make you aware of mortgages that you should possibly consider. Amongst others, this could be an offset mortgage a tracker mortgage. If you are wanting a fixed-rate mortgage they can advise on the fixed rate period best for your individual situation.
Since a broker is independent and has access to the majority of mortgage providers they will able to offer the best mortgage options and the lowest monthly repayments. In other words, when you’re searching for that perfect solution, be sure to utilise a whole-of-market broker!
3) How much do you charge?
Understanding your mortgage broker’s fees is paramount. Some will charge a one-time fee, typically from £500 to £1,000 while others work on commission and receive what is known as a procuration fee from the lender. Remember that this cost could be in addition to any charges imposed by the financial institution you’re borrowing from – so make sure you understand everything upfront!
Some brokers like YesCanDo Money choose not to charge you a fee and are known as fee-free mortgage brokers.
4) How much can I borrow?
When you are looking at mortgage options, it is essential to ask your broker how much money you can borrow. The amount of borrowing power that you have will depend on various factors such as:
- income, (The Income Required for Mortgage Approval)
- amount of credit you currently have,
- your credit score, and your credit history.
Knowing the amount you can borrow will assist you in finding properties within your price range. Mortgage affordability may differ between mortgage providers, but a broker can tell you which lender is best suited to your financial status.
5) How much deposit will I need?
The amount of deposit you put down will depend on the property value and how much of that sum a lender is willing to lend. The minimum deposit you can put down for a mortgage is usually 5%. The deposit and mortgage loan make ratio known as the loan-to-value ratio (LTV), typically reaches up to 95% of the property cost. The more money you have saved for a deposit, the broader range of mortgage opportunities available to you!
6) What type of mortgage deal would be best for me?
Understanding the best type of mortgage for your needs is vital. The type of mortgage you choose will depend on your personal preference and your plans for the future. Mortgage types include:
- repayment mortgages,
- interest-only mortgages,
- variable rate mortgages,
- fixed-rate mortgages,
- capped rate mortgages,
- discounted rate mortgages,
- tracker mortgages,
- flexible/lifestyle mortgages,
- offset mortgages,
- and cashback mortgages.
Read our guide on The Different Types of Mortgages Explained
Each type of mortgage has its benefits and drawbacks, and your mortgage adviser can help you decide which interest rate with the lowest monthly payments is best for you.
7) What fees will be payable to the lender?
There can be many fees that you may need to pay to the mortgage lender. The two largest are for a survey of the property and the second is an arrangement fee. These two combined can easily add up to £1,500! Many lenders offer incentives to gain new customers. A mortgage broker will be able to make sure you pay as little as possible on these two fees by getting you the right mortgage.
8) What documents will you need, and how long will it take to process my mortgage application?
It is important to understand what documents you will need to provide to the lender and the estimated time for processing your application. If your application is straightforward, the process should be quick, but if your application is more complicated, you should be prepared for some delay.
9) Can you refer a solicitor for my property purchase?
Mortgage advisors are often able to offer you advice regarding the best conveyancing solicitors for property purchase. In fact, many brokers have a selection of experienced legal professionals they work with regularly and can suggest to you as an option. These recommended solicitors should be experienced in property transactions and provide excellent customer service at every step along the way.
If you’re considering buying a property, utilising the services of your mortgage advisor’s recommended solicitor can be incredibly advantageous. Not only may they have some existing experience working together to expedite the process, but it could also result in better rates for their services too! While there is no obligation to use the prescribed solicitor, at least consider it and possibly determine if they are indeed right for you. Ultimately though, don’t forget that any choice of yours is valid here – feel free to exercise freedom over who proves most capable when selecting someone else as well!
Before entrusting your legal matters to a solicitor, it’s crucial that you verify their credentials and qualifications. Make sure they are registered with the Law Society or SRA first and foremost, then thoroughly research any fees incurred for services provided along with other associated costs.
10) What kind of customer service and support can I expect throughout the mortgage process?
When it comes to customer service and support during the process of getting a mortgage, there are no guarantees of what you’ll receive. However, here’s a glimpse of the kinds of help available through some reputable mortgage brokers:
- Communication: A good mortgage advisor should keep you informed and up-to-date on the status of your application, any required documentation, and the overall progress of your mortgage. This can include regular email or phone updates, as well as providing you with a clear timeline of the mortgage process.
- Availability: You should be able to reach your mortgage advisor when you need to. A good broker will make themselves available to answer any questions or concerns you may have from the first call to completing on your mortgage.
- Guidance: A mortgage advisor should help you understand the mortgage procedure and provide guidance on any issues that may arise. They can also offer advice on how to improve your credit score so you can improve credit history or find alternative financing options if you don’t qualify for the mortgage you originally applied for.
- Problem resolution: A good mortgage advisor should be able to help resolve any issues that arise during your application for a mortgage, such as disputes over appraisals or title issues.
- Closing support: Your mortgage advisor should be available to help you through the closing process, including answering any questions you may have about closing documents and coordinating with the lender and other parties involved in the transaction.
- Customer Reviews: The surest way to determine if a broker provides excellent customer service is to read their reviews. If the company has provided top-notch services in the past, those clients should be leaving glowing five-star ratings – this will serve as your proof.
Conclusion on the importance of choosing the best mortgage broker
When searching for a mortgage, the right broker can be integral in finding you an unbeatable deal that meets your unique needs. With the mortgage advisors experience and access to various products, your broker will guide you through the intricate loan market with confidence. Investing time into selecting the best possible mortgage broker is key to ensuring a successful outcome when it comes time to sign on the dotted line.
Utilising the ten questions from this guide, you can evaluate a mortgage broker’s skills and fees as well as their customer service. Doing so allows you to pick an effective, reliable broker that will stay by your side throughout the entire loan process and guarantee your trust in them.
It is critical to select a mortgage advisor who will be your trusty companion in the process of buying your home. Make sure you find an individual that pledges to provide impeccable service and support from beginning to end. Spend some time researching for the perfect mortgage advisor, and before long you’ll have found yourself unlocking the door of your dream house!
When you are at the end of your fixed interest rate and free of early repayment charges from your mortgage lender a good broker will stop you from needing to pay a variable rate mortgage! At YesCanDo we will contact you 6 months prior to your fixed interest rate period ending. We are aware that you have enjoyed the security of knowing that your monthly repayments and one of our mortgage advisors will search the whole mortgage market to get you the lowest interest rate possible whether it be a fixed rate or a discounted mortgage. We offer you two promises! First that we will never charge you a penny for our services as we do not charge broker fees and secondly we will find you the best mortgage deal available to you.