Top 10 Questions To Ask A Mortgage Advisor 2023

Not all mortgage consultants are the same. Find someone who can shop around for the greatest offer for you at a price you can afford (some are even free!). To determine your actual budget and the potential size of a mortgage, you must also ask some crucial questions.

Ready to purchase a new house? Future events are exciting! Now comes the mortgage application process, which may be challenging and stressful but doesn’t have to be! By opting to work with a mortgage adviser (also known as a mortgage broker) rather than looking for a mortgage on your own, you’ve already made the greatest choice possible. This will save you a tonne of administrative work and, more significantly, ensure that you’ll discover the best offer for you. We refer to them as mortgage superheroes!

However, not all consultants are created equal; in fact, they differ rather drastically. By choosing the incorrect advisor, you might end yourself paying hundreds of pounds extra each month for your mortgage. Before you begin, ask a mortgage expert these 10 important questions.

Also check – Questions To Ask A Financial Advisor / Questions To Ask When Buying A Business

Questions To Ask A Mortgage Advisor

1. Do you have an FCA license?

Legally, only those who have been granted authority by the Financial Conduct Authority may provide mortgage advice (FCA). The FCA evaluates and reviews the adviser to ensure that they are suitable, have no criminal records, and are qualified to provide mortgage advice.

Additionally, they will be subject to frequent evaluations and be required to go by predetermined rules and processes to make sure they are treating you fairly, locating the greatest bargain for you, and refraining from suggesting the offer that would benefit them the most (the highest commission). It also implies that you will be eligible to compensation if they do propose the incorrect contract to you. It’s better to verify the FCA registration yourself; to do so, simply search for the person’s or the company’s name.

A mortgage advisor could be a “appointed representative” of another authorized company rather than being directly authorized. That’s totally ok! It’s frequently a cost-effective way for startups and small businesses to get off the ground. Run for the hills if your mortgage counsellor isn’t permitted to do so by the FCA!

2. Do you serve the full market?

Once you know they are truly permitted to provide mortgage advise, the most crucial question to ask any mortgage expert. The mortgage adviser must be able to look through all available mortgage deals in order to locate the finest one for you in order for you to receive the greatest mortgage offer. The ability to search each mortgage agreement is referred to as “whole-of-market,” which means that you are exploring the whole mortgage “market.”

Given that there are over 20,000 mortgages outstanding at any given moment, not getting the best offer might result in you paying much more interest each month than you should. You’ll need to inquire because most mortgage counsellors don’t thoroughly research the market. How come? If not, they are more inclined to keep it a secret from you.

Some brokers can only propose their own mortgages, such as if you went into a bank on the high street (never do this; loyalty to your bank doesn’t pay!). Many brokers can only recommend a small number of mortgage lenders. Don’t settle for a broker that just searches a small number of lenders when there are over 90 mortgage lenders available. Use one that looks through each one! You might be able to save yourself some money!

3. What are your fees?

Now that you know they can offer guidance and that it will help you get the finest mortgage deal possible, it’s time to speak money. Therefore, a normal mortgage counsellor will frequently charge a fee, whether you speak to them in person, over the phone, or over email. It mostly relies on their level of service and the kind of mortgage you want.

It’s frequently a fairly straightforward procedure for the broker, and they’ll charge a reduced fee, if you’re not moving house and are instead remortgaging (switching mortgage packages). Moving homes and first-time purchasers require a little more labour, therefore the rates are often a little more.

When they secure you a mortgage, the broker also receives payment from the mortgage lender because they are bringing in business and handling a lot of the paperwork. Therefore, attempting to charge you a lot of money is a little cheeky. There are free mortgage brokers available, but always pick one that can look throughout the whole market.

4. What is the loan amount?

We’ve reached the exciting part now! What is your actual borrowing capacity? Is the house you want genuinely within your means? To determine how much you can really borrow and if you are likely to be approved for a mortgage at that amount, a professional mortgage counsellor will carefully review your financial situation.

A reputable adviser will obtain a mortgage agreement in principle for you, which is a highly reliable indication of how much you may actually borrow. Often, this agreement is from a real mortgage lender, so you can be sure they aren’t speculating and that you will be able to borrow that amount.

5. How much money must I put down?

You can choose how much you borrow if you have a house in mind by receiving your mortgage-in-principle. When things grow confusing, a mortgage advisor can help since they’ll handle a lot of the arithmetic for you. Less than a 10% deposit is often required to qualify for a mortgage; but, you could be fortunate and get one for 5%. Even with a 10% deposit, the mortgage will have a high interest rate. (An interest rate is the amount you must pay the mortgage lender as a cost of borrowing the money each year.)

In order to make sure you can really acquire a mortgage and that the interest rate is favourable, it is sometimes better to aim to get 15% or 20% as a deposit. In our illustration, we have a 15% deposit, which is excellent. Your adviser will also inform you of other expenses including Stamp Duty (tax), legal fees, and building surveys. Purchasing a home is costly!

6. Should I make mortgage repairs? Furthermore, how long?

Here’s one more crucial query. (We’re almost done!). When taking out a mortgage, you are frequently given a set interest rate. Although it might be 7, 10, or even longer, this is often “set” for 2 or 5 years. This is how mortgage lenders compete with one another, and it’s often a very good bargain to tempt you into a mortgage (trying to get top of a comparison table).

However, once your fixed rate term is up, the interest rate often jumps to the mortgage lenders’ “standard rate,” which is a significantly higher rate. When that happens, you should frequently refinance to a new contract. It’s important to remember that you can obtain variable rate mortgages, which are mortgages without a set interest rate (as the rate can change depending on things like if the Bank of England base rate increases or decreases).

You must determine whether to fix your mortgage at all or for how long with the assistance of your mortgage expert. While fixing for a shorter term is frequently more affordable, there are typically significant costs (known as early repayment charges) if you modify your mortgage during the fixed rate period, such as selling your house or relocating (although this isn’t always the case).

7. Which mortgage programme is ideal for me?

You should now consult with your advisor to choose the best mortgage option for you. The type of mortgage that most individuals receive when they buy a home to live in is referred to as a “repayment mortgage” because part of the principal and part of the interest are paid off each month. The home will be entirely yours when the mortgage is paid off.

However, it is also possible to get a mortgage that requires simply monthly interest payments, or “interest only.” Landlords who are applying for a buy-to-let mortgage frequently have these. There are other additional sorts of mortgages that we won’t discuss here, but it would be wise to see a mortgage expert anyway! A part-and-part mortgage, discounted rate, capped rate, tracker mortgage, and offset mortgage are a few examples.

Additionally, you must determine how long you want the mortgage. Mortgage terms typically range from 10 to 40 years. Additionally, lengthier mortgage terms result in cheaper monthly payments but higher interest costs overall (as you are paying interest for more years). The usual mortgage term is 25 years, however many individuals are choosing longer mortgage terms these days since they are more affordable (due to skyrocketing home values!). Asking the adviser what they believe is best for you and your financial situation is preferable, though.

8. Which mortgage would be the greatest for me?

And ultimately, which mortgage would be the greatest for me? The most crucial query! Your mortgage counsellor will be able to discover the ideal mortgage for you now that they are well-informed about you and the property you want. Depending on the adviser, it may take a few days or more, but in the end, you should have the ideal mortgage with manageable monthly payments and a competitive interest rate.

The only thing left to do is apply once you and your partner have chosen the mortgage. Your mortgage advisor will apply on your behalf because they have all of your information. You will have to do a lot less administrative work as a result. You already knew they were super heroes!

9. What is the yearly percentage rate and interest rate I have?

Recognize that the interest rate will decide the size of your monthly payments when you obtain your quotation. The interest rate plus the loan costs make up the annual percentage rate (APR).

A broker will present you with many rate quotations from different lenders, providing you greater flexibility in your loan selection. Remember that your options for rate and product are far more constrained if you decide to engage with a bank’s loan officer. If you’re considering an adjustable-rate mortgage, find out how frequently and how much the rate might rise.

10. How long would it take to process my mortgage application, and what papers will you need?

It’s critical to be aware of the paperwork the lender will want from you as well as the anticipated turnaround time for your application. If your application is simple, the procedure ought to go reasonably quickly, but if it’s more difficult, you should be ready for a wait.


Purchasing the home of your dreams is thrilling! The appropriate adviser will take care of all the tedious paperwork and admin for you, getting you into your ideal house as soon as possible and with the best mortgage for you.