Home ownership site Better has published 10 key questions which mortgage applicants should ask their brokers, to ensure best service.

A spokesperson for Better says: “A good mortgage broker can help you feel secure and confident about your home purchase and mortgage choice. Becoming a mortgage broker takes time—typically several years of study and hands-on training. Brokers need to keep learning to stay updated on new rules, mortgage products, and market changes.

“It’s important to feel comfortable asking your broker any questions, no matter how basic they may seem – there are no stupid questions when you’re dealing with large amounts of money. Think of the process as interviewing someone for a job. If your broker uses words or jargon you don’t understand, stop them in their tracks and ask them to explain.

“You need to fully understand the commitment you’re making, and a good broker will be patient and take the time to answer all your questions. They should be there to guide you every step of the way.”

1. “Which lenders do you work with?”

Why this matters: A mortgage broker who works with a wide range of lenders can offer you more options. If they work with only a select few, you could be missing out on better deals elsewhere. Ask your broker whether they can access the whole of market or are restricted to specific lenders.

2. “Are you independent?”

Why this matters: Independent mortgage brokers offer impartial advice because they aren’t tied to any specific lender, meaning they can search the entire market for the right deal for your circumstances. In contrast, brokers that are tied to certain lenders may be limited in their offerings, so be sure you’re clear on whether they’re recommending from a broad range or a select panel of providers. 

3. “How do you get paid, and what are your fees?”

Why this matters: Some mortgage brokers charge a fee for their service, while others are paid a commission by the lender. Make sure you know how much they charge, how they are paid, and when their fees are due. Ask for a clear breakdown of the costs involved – some brokers may offer free initial consultations but charge a flat fee or percentage later on. Brokers should provide a “Key Facts Illustration” (KFI) document, which is a legal requirement to help their clients understand the total cost of their mortgage.

4. “What’s the total cost of the mortgage over the full term?”

Why this matters: It’s an easy trap to fall into to focus on the interest rate offered or how much your monthly repayments will be, but the cost of your mortgage over the full term is really what matters. A responsible broker should help you understand the total cost of borrowing, including any fees, charges, or early repayment penalties. This question will mean there are no nasty surprises down the road and that you have a clear view of your long-term financial commitment.       

5. “What’s the typical timeline for mortgage approval?”

Why this matters: The property market can move quickly, and delays in mortgage approvals can result in lost opportunities. Ask your broker about their typical processing times, and how long it usually takes to secure a mortgage from the lenders they work with. Brokers should give you an idea of potential hurdles and what paperwork you can get ready to speed up the process.

6. “Will you help me with the paperwork and application process?”

Why this matters: Mortgage applications can come with a lot of paperwork, and understanding the details can feel daunting, especially when you’re not familiar with the language used. A good broker should help guide you in gathering the right documents, filling out forms, and ensuring everything is submitted on time. Mortgage brokers are meant to offer easy-to-understand advice throughout the application process, so make sure they are prepared to support you beyond just finding the best interest rate.

7. “Can I make overpayments or repay early without penalties?”

Why this matters: Life has a tendency to throw you the odd curve ball at times, and you may find yourself in a position to pay off your mortgage earlier or make an effort to make overpayments. Understanding any restrictions or penalties is important because some lenders charge a fee for making early repayments. Ask your broker if they can help you find flexible mortgage options that allow overpayments or early repayment without financial penalties if this is important to you. 

8. “How will interest rate changes affect my mortgage?”

Why this matters: With interest rates subject to change, you need to know how any fluctuations will impact your mortgage payments. A broker should be able to explain whether a fixed, tracker, or variable-rate mortgage is best for your circumstances and how future rate rises or falls could affect your financial situation. This ensures you’re not left vulnerable to sudden hikes in repayments.

9. “Will you share my financial details with the estate agent or anyone else?”

Why this matters: If your mortgage broker was recommended by an estate agent, it’s important to know if and how they share your financial information. You want to ensure that your mortgage broker is working in your best interests and not revealing sensitive details like how much you can afford, which could be used to influence property negotiations. It’s essential to clarify their policy on confidentiality to protect your financial privacy.

10. “What happens if my circumstances change during the application?”

Why this matters: Life is unpredictable, and changes in your financial situation, like being made redundant can impact your mortgage application. A good broker should be able to advise on how these changes might affect your eligibility, and whether they’ll be able to adjust your application or find alternative lenders if your situation shifts.