10 questions your mortgage broker might ask you

What to expect when talking to a mortgage broker?

When talking to a mortgage broker, they will likely ask you about your finances, including how much deposit you have saved up (or how much equity you have in your current home), outstanding credit commitments, personal loans, outgoings etc.

They will also ask you what type of home you want to buy, or the type of remortgage deal you’re looking for to work out your budget and affordability. From this, they can start looking at what mortgage deal is best for you - and if they are experts in boosting affordability like us, they might also discuss potential ways you could increase your buying budget. They might also help you understand the costs involved with buying a home, such as covering stamp duty and legal fees.

What will my mortgage broker ask me?

• How much have you saved for your deposit? Your broker will need to know how much you’ve saved as a down payment. You’ll usually need a deposit of at least 10%, although it is possible to get a mortgage with just 5% saved. You’ll usually have access to more deals and more competitive interest rates if you save 20% or more.
• Do you have family help? Whether your parents are giving you a couple of grand towards your own home or they’re handing you a full deposit, your mortgage broker needs to know. A gifted deposit isn’t the only way that family can help you onto the property ladder. They could help you with an Income Boost, for example. This involves adding their income to your mortgage application so you can increase your affordability and get a bigger mortgage.
• How much do you earn, and how secure is your income? Before your mortgage broker can compare possible mortgage deals, they’ll need to know how much your household earns and where the money is coming from. This will include your earnings, any self-employment profits or rental income, as well as state pensions, benefits and child maintenance payments. By sharing this information with your broker, they can work out how much you can afford to borrow and which lenders could offer you the loan you need.
• How much do you spend each month on average? You’ll usually need to give your broker a rough idea of how much you spend each month on average. They’re not trying to catch you out or make you feel bad. They just want to make sure you can afford your mortgage payments on top of your existing expenses. If you don’t have a budget already, it can be helpful to list your expenses in advance so you’re not caught off guard. When you apply for a mortgage, lenders usually want to see bank statements from the last 3 to 6 months as proof of your spending, so your broker may ask to see these too to help identify anything which may impact your affordability or make a lender more likely to reject your application.
• Do you have any debts? This will include credit commitments such as credit cards, personal loans, payday loans, store cards, buy-now-pay-later agreements, hire purchase agreements, court judgements and debt management plans. You don’t need to be debt-free to get a mortgage, but lenders want to make sure that you can afford to pay your mortgage on top of your outstanding responsibilities, and will want to see how you manage other loan repayments.
• Have you struggled with debt in the past? Your credit score doesn’t need to be perfect, but the healthier your credit report, the easier you’ll usually find it to get a competitive mortgage deal. Lenders want to see a track record of paying creditors back on time, and they may offer you a less competitive interest rate or reject your application completely if you’ve struggled with debt in the past. It’s important to be honest with your mortgage broker, as anything you omit may mean you end up being rejected by a mortgage lender later down the line. 
• Where are you in your property search? Have you found a property you’d like to buy, or have you only just started looking? Your broker will want to know whereabouts you are in your property search so they can understand your timeframe. This also makes it easier to plan ahead for credit checks, property valuations, conveyancing arrangements and common homebuying milestones. 
• What type of property are you hoping to buy? Do you have a particular type of property in mind? If so, your mortgage broker will ask you to describe it. For example, how much does it cost? (a rough estimate is fine). Mortgage brokers don’t ask these questions to be nosey; the type of property you want to buy can influence the mortgage deals available. For example, getting a mortgage on a leasehold property can be harder than getting a mortgage on a freehold home. Some people find it harder to get a mortgage on a new build, with some lenders requesting a bigger deposit than they would if the property was built, say, 100 years ago. Thankfully, a broker can help you navigate the complicated world of mortgages and property and boost your chances of getting the right mortgage. Some brokers even have access to special homebuying initiatives. Here at Tembo, for example, we have the Deposit Unlock Scheme, which is only available on new build homes.
•  What type of mortgage are you looking for? Are you taking out a new mortgage or remortgaging? And will you live in the property or rent it out? These questions help your broker to narrow down their search and rule out unsuitable products. They’ll also ask whether you have a particular mortgage type in mind. You might prefer a fixed-rate mortgage for payment security or a tracker mortgage that rises and falls in line with the base rate. You might prefer an offset mortgage for the flexibility to overpay, but don’t rule out standard residential mortgages as they’ll often let you overpay a set amount each year. You might also have a specific term in mind, such as a longer-term mortgage to keep monthly payments low. Don’t worry if you’re not sure which type of mortgage you need. Your broker can explain the different options and make recommendations based on the information they gather about you.
• Are you using any government schemes? You might have a government scheme in mind already, such as Shared Ownership or Right to Buy. If so, your broker will look for compatible mortgages and compare your chosen scheme to possible alternatives. In some cases, you may be better suited to a standard residential mortgage or a first-time buyer initiative you’ve never even heard of.  

What questions to ask a mortgage broker?

• How many lenders do you have access to? Not all mortgage brokers have “whole of market”. Some will only have access to a much smaller pool of mortgage deals, and sometimes they’ll only have access to one lender. Making sure you’re going with a whole of market broker (like Tembo) can ensure your broker can compare your eligibility to a bigger range. We have access to over 20,000 mortgages from our panel of over 100 lenders, as well as a range of little-known, budget-boosting schemes!
• How long will it take to get my mortgage approved? Whether you’re buying or remortgaging, getting your mortgage offer is one of the first milestones you want to hit as quickly as you can. Asking your broker how long this aspect of the process will take can help you decide if they are the right broker for you, especially if you need to move quickly! On average, our customers receive a mortgage offer in as little as 10 days.
• Do you offer a rate-checking service? If mortgage rates change rapidly, or your house purchase is drawn out, it can sometimes make sense to reapply for a mortgage after you’ve had your initial offer to lock in a lower rate. Not all brokers will offer this service, or they may charge. At Tembo, our customers can request a rate check for free at any time up to 4 weeks before the exchange or completion date - all they have to do is ask their dedicated mortgage advisor!
• How much do you charge? It’s easy to think that going with a no-fee broker is the best option. But often, charging a fee allows a broker to give much more time to your individual case, as they aren’t reliant on processing cases as quickly as possible. Your house purchase will likely be the biggest purchase of your life, so you want to make sure you get the best mortgage option for your situation! Read our guide on How much does a mortgage advisor cost for more information.
• Have you won any awards? Like all industries, there are plenty of awards out there which help to show which mortgage broker services stand out from the rest. Here at Tembo, we’ve been voted the UK’s Best Mortgage Broker at the British Bank Awards by our customers four years running! Customer feedback and reviews are also important. That’s why we’re proud to also be rated Excellent on Trustpilot, from over 3,000 reviews.
• Can you help me with other aspects of the house-buying process? Getting a mortgage is only one part of the home-buying process. A good mortgage broker will help you navigate the other steps. At Tembo, we partner with a panel of trusted conveyancers and surveyors if you need help choosing who to go with.
• Can you help me with mortgage protection and insurance? Not all mortgage brokers help with mortgage protection insurance or similar types of cover, such as income protection. But the company may have a specialist team that can help you find the right option for you.