Top 10 questions about using a mortgage broker

Aug 28, 2019

Click below to find our answers to the top questions about mortgage brokers

  • Mortgage brokers are specialists who know the mortgage market well and are aware of all the latest mortgage products and deals. They can offer advice on how much you can borrow, which can be useful for first-time buyers.

  • Using a mortgage broker can save you time searching for a deal yourself and they can quickly let you know who is likely to lend to you. They can also help you to fill in and process your application. Mortgage brokers can also help to find loans for applicants with freelance or contract jobs.

  • Some brokers will charge you a fee, which will either be a flat rate or a percentage based on the amount you want to borrow. Others can offer mortgage-broking for free if they receive a commission from the lender. You should ask for a full breakdown of any fees and commission they receive before you enter into an agreement.

  • Ask friends, family or colleagues for recommendations. Compare any fees quoted and find out what this includes. Brokers are regulated by the Financial Conduct Authority and must have a CeMAP or CertMA qualification. Check their reviews to see what the public thinks about their service.

  • Often brokers can access mortgage deals that are only available to them. A whole of market broker should have access to all mortgages on the market, so they will be able to suggest the best one for you. However, some are tied to certain lenders only or if they work for a bank or a building society they will only tell you about their own product range. Some lenders will only deal directly with the borrower so it’s worth doing your own research too to compare the results starting with where you have a personal bank account to see what they can offer.

  • You may be asked to speak to the agent’s mortgage broker to confirm your financial position when you start looking for a property or when you make an offer. You are under no obligation to use this service but you can compare any offers with others you have found.

  • A mortgage broker should ask you in detail about your finances and explain the different types of mortgages and interest deals on offer and advise which ones suit your circumstances. They should give you clear reasons why they have suggested a particular mortgage to you. Check if they will take responsibility for all the administration and chasing lenders and when they will be available to discuss your case? Do they work out of office hours and at weekends?

  • You will need to prove who you are with your passport or photo driving licence, where you live, how much you earn and have proof of your deposit. You may also be required to show evidence of a right to reside in the UK, and any additional income (eg bonuses) and non-earned income (maintenance payments, child benefits). If you are self-employed you will be asked for two to three years’ of accounts. If you already have a mortgage you will need to show your most recent mortgage statement.

  • Most brokers will like to see you in person or at least speak to you over the phone but you can use a web-based company that processes your application mostly online.

  • Firstly ask the company to resolve the situation. If you need to take your complaint further you can contact the Financial Ombudsman Service (0800 023 4567) or for help.