What should I know before hiring a mortgage broker?

Choosing a broker can save time and money; the key is knowing the right questions to ask. If you are wondering what to ask before hiring a mortgage broker, use this checklist to compare options fairly; understand fees; and feel confident about the advice you receive.

1. Are you whole-of-market or restricted?

   Whole-of-market advisers can search widely; restricted brokers work from a panel. Ask for a clear explanation; confirm how many lenders they actually place cases with.

2. How are you paid; what will this cost me?

   Some brokers charge a client fee; some are paid by the lender via a procuration fee; some do both. Request a written explanation that shows the total you will pay and when.

3. Are you authorised and regulated by the FCA?

   Ask for their firm reference number and check it on the Financial Services Register; this protects you if things go wrong.

4. What type of mortgages do you arrange?

   First-time buyer; home mover; remortgage; buy-to-let; specialist or adverse credit. Choose a broker who regularly handles cases like yours.

5. Can you provide an Agreement in Principle quickly?

   An AIP; sometimes called a Decision in Principle; helps when viewing properties. Ask how long it takes and what documents you will need.

6. How will you assess affordability and suitability?

   Good brokers review income; commitments; credit profile; deposit; future plans. They should explain product pros and cons: fixed; tracker; variable; offset.

7. What are the total costs over the deal period?

   Look beyond the rate. Ask about product fees; valuation; legal costs; early repayment charges; portability; and any exit fees. Request a side-by-side comparison.

8. How do you communicate and how fast?

   Confirm one main contact; preferred channels; and typical response times. Ask for a timeline from AIP to offer to completion.

9. Do you recommend related protection products?

   Life cover; income protection; and buildings insurance may be discussed. You are not obliged to buy; compare quotes and ensure any advice is suitable for your needs.

10. What happens if there is a problem or complaint?

    Ask for their complaints procedure; whether they belong to the Financial Ombudsman Service; and how they handle lender delays or declines.

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Quick FAQs

Is a mortgage broker better than going direct to a bank?

A good broker compares many lenders; this can uncover products or criteria you might miss. Banks offer only their own deals.

Do brokers always charge a fee?

No. Some charge the client; some are paid by lenders; some use a mix. Always get the fee structure in writing before you proceed.

Will using a broker affect my credit score?

An AIP usually uses a soft search; this does not impact your score. A full application may use a hard search; your broker should explain the timing.