The most important questions to ask a mortgage adviser

In our recent survey of 500 UK homeowners, 25% reported they were unsure what to ask a mortgage adviser. For those who did know, the most important question was, “Are you an independent adviser?" 

Surprisingly, 53% believed that asking the right questions could have led to a better mortgage deal. These findings highlight the importance of making informed decisions about such a significant financial commitment.

Before you sign on the dotted line, you’ll need to be confident your adviser can do the best work for you. It’s key you ask them specific questions. To help you out, we’ve broken down the core questions into three areas:

• Questions about your mortgage adviser
• Questions about the process
• Questions about your chosen mortgage

Highlighting the significance of consulting a mortgage adviser before starting the homebuying process, Terry Higgins, Group MD at TNHG New Build Mortgage Services, elaborates:

“Securing a mortgage is a significant financial undertaking and one of the most important decisions you'll make in your lifetime. It's common to feel overwhelmed by the complexity of mortgage terminology, such as FTB's, LTV's, SVR's, AIP's, and ERC's, which can seem like learning a new language.

“Fortunately, assistance is available, and you don't have to navigate this journey alone. It's essential to consult with a knowledgeable mortgage broker, especially one who specialises in new build properties like New Homes Mortgage Helpline. They can expertly guide you through the entire process and ensure you secure the right mortgage product tailored to your individual needs.

“Keep in mind that relying solely on your bank may limit your options, as they can only offer their own products. In contrast, working with a mortgage broker gives you access to a vast array of choices, with New Homes Mortgage Helpline offering access to over 12,000 products.”

Questions about your mortgage advisor

Before you enter into any transaction make sure you’re happy they have the full capacity to get you the best deal. Be aware that there are two main types of mortgage adviser – those who work for specific lenders and those who are independent. This will determine the type of advice you receive which means that the first question you ask should be:

 

1. Are you an independent adviser?

If your adviser is independent, they should cover the full market, meaning they can find your mortgage from all the available options.

If you are buying a new build, your best option is to speak to a New Homes Mortgage Adviser (NHMA). They will have an overview of the entire market and advise accordingly, offering the best guidance for your situation. By contrast, advisers tied to a specific lender won’t necessarily present you with the most suitable deals, just the ones associated with their lending partners.

2. What are your qualifications?

Ask this as early as possible. Mortgage advisers must be qualified to supply advice, so always check. They must have a qualification recognised by the Financial Conduct Authority, such as the Certificate in Mortgage Advice & Practice (CeMap).

3. How do you charge your clients?

This will depend on the adviser, with some charging a set fee and others receiving a commission from the lender. If it’s a flat rate, you’ll cover this charge. 

4. Can you help me with any other products?

As a condition of getting your mortgage for your new home, you must have buildings insurance in place. Your mortgage adviser can potentially help you secure a good deal on this too, but always compare their offer against the market rate.

 

Questions about the process

If this is the first time you’re buying a house, you’re bound to have plenty of questions. Here, we’ve outlined key questions to ask during the process to ensure you’re prepared.

 

5. What are the different types of mortgages available?

There are numerous mortgage types on the market. Different ones will affect the interest rate you pay, the value of your monthly repayments, any charges you might face, and the length of your mortgage term. It is important that your adviser explains everything thoroughly, illustrating how specific mortgages could work for your situation. 

6. How long will it take?

This will differ depending on your financial situation and chosen lender. Your adviser will be able to give you an idea early in the process. 

7. How much can I borrow?

Several factors play a part here, including your deposit, income, and current financial situation. You will need to bring specific documentation to your first meeting to enable your adviser to make an informed decision and establish the right way to advise you.