Buying your first home can be a daunting task, and it is important that you ask the right questions to get the best deal.

Mortgage brokers help you to find the right lender to meet your own mortgage needs. A good broker will also guide you through the process from start to finish, help you with solicitors and address any insurance and protection needs that you will have.

It is important to have some questions to ask a mortgage broker ready when you go to meet them so that they can help you find the best mortgage to suit your needs.

Questions to ask a mortgage broker

The First Question to Ask a Mortgage Broker – Are You Regulated?

The first thing you should ask before proceeding any further is whether the mortgage broker you are talking to is a regulated broker. In the UK, all mortgage advisors have to be regulated by the FCA.

You may be able to find out for yourself if the broker is regulated by checking if they are on the FCA register. This regulation will help protect you in case something goes wrong with your application.

What Will It Cost Me?

It is also important to figure out early on in the process how much the broker is going to charge you for their services.

In general, brokers will charge you a fee, work on commission or a combination of the two. Working on commission means that the chosen lender will pay the broker a sum of money for arranging the mortgage, this amount is based on the amount you borrow.

If your mortgage broker is going to charge a fee, you should confirm with them when this will be due.

How Much Deposit Will I Need?

Another critical question to ask a mortgage broker is how much of a deposit you will need to put down on a property that you want to buy.

In most cases, you will need to put down a percentage of the property value as a deposit, and the lender will lend you the money for the rest. Your broker may describe this as the “loan to value ratio” or the LTV. If the deposit is 10%, then the LTV will be 90%.

It is also worth posing the question to a mortgage broker of putting down a larger deposit in order to get a better deal.

Do You Work With Many Lenders or Just One?

Some mortgage brokers will only work with one specific lender, some will work with a small group of lenders, and others will work across the market with a wide range of lenders.

This is one of the more essential questions to ask a mortgage broker as it may affect the mortgages available to you.

If you decide to go with a mortgage broker who works with a broader range of lenders, they may be able to get you a better deal as they have more lenders to compare to each other.

What Types of Mortgage Are Available?

There are many types of mortgages available, and they all suit people’s needs differently. These different types change how you are going to repay your mortgage.

It is important that you ask a mortgage broker what type of mortgage they recommend for you and your circumstances.

What Else Can You Help With?

Buying your first home can often seem like an impossible task. It is, therefore, worth taking all the help you can get. Along with these questions to ask a mortgage broker, you can also ask what other elements of the process they can help you with.

Your mortgage broker is an invaluable resource to you, and can make the process of buying a house much more straightforward.


The content of this post was accurate at the point of publication and is subject to change.