If you’re thinking of buying a new home, or even if it’s your first home, the likelihood is that you’re feeling a whole load of emotions, mainly excitement and stress. Whilst moving house is a pretty intense time, finding a mortgage really doesn’t have to be.
You may think that entering mortgage discussions now is a bad idea with the current state of the economy, but using a mortgage advisor can make finding the right mortgage for your circumstances much less stressful.
So, to make this process a little easier, we thought we would make a list of the top 5 most essential questions to ask a mortgage broker, before you commit to being their client.
Essential questions for your mortgage broker
1. What fees do you charge?
The cost will always be the main factor in choosing a certain mortgage advisor. You’re spending a lot of money on a home so you want to be able to save where you can. Most mortgage advisors will charge a fee, and this amount will range depending on the services they offer and the type of mortgage you want. Moving home or buying your first home requires more work than remortgaging, so fees for the latter can sometimes be slightly lower. It’s also important to find out what is included in the fees.
2. How much can I borrow?
The question we all want answering when we seek out a mortgage advisor is “Are you able to help me obtain the home I want?” Working through finances and how much you can specifically afford to borrow is the job of a good mortgage broker and keeping your expectations realistic around the amount you will be accepted for. The lender will want access to your monthly outgoing vs. incomings, your yearly salary, how much you have left at the end of the month, and your credit history. This will give them a good indication of how reliable you are and how much you can realistically repay each month. A mortgage-in-principle is something that your mortgage advisor will be able to offer you, which is a strong indication of how much you will likely be able to borrow.
3. How quickly can you get me a mortgage?
It is advisable to know in advance of entering a relationship with a mortgage advisor, what their availability and expected timings for their recommended lender are upfront. Timing is everything when it comes to buying and selling houses, so securing a mortgage deal at the right time is essential. Over the past few months, mortgage rates have changed at an epic rate, which means that lenders have to deal with an increase in demand, and, to maintain a level of service, many have had to pull their rates or keep them artificially high for a period.
4. Do you have ‘Whole-of-Market’ access?
For your mortgage advisor to obtain the best rates for you, you need to know that they can search whole-of-market, which is as it sounds, being able to search the entire mortgage market, to enable them to find the best rates matched to your needs. With over 20,000 mortgages at any time, using a mortgage advisor that can’t search the whole market means that you could be overpaying or not offered the full amount of money you are entitled to. Some mortgage advisors can only recommend a few mortgage lenders and don’t search whole-of-market, so it is advised that you ask before you begin.
5. What is the best mortgage for my circumstances?
There are many different mortgage types, the most popular being a ‘repayment mortgage’ where a portion of the mortgage along with interest is paid off each month. You can also get ‘interest only’ mortgages which are common with landlords and buy-to-let mortgages, where just the interest is paid each month, along with many others such as a part-and-part, discounted rate, capped rate, tracker, and offset mortgages. It is worth discussing with your mortgage advisor to ensure the right one is matched for you. Another important point to note is to discuss how long you want your mortgage. The longer you have your mortgage, the lower the monthly repayments, but this also means that you will be paying more in interest. The typical mortgage is 25 years but with the current economic climate, more people are opting for longer mortgages to make them more affordable.
How an independent mortgage advisor can help you
When it comes to finding the right mortgage for you, it’s wise to familiarise yourself with the different mortgage types before deciding. It can be a confusing time trying to understand the jargon, but at TaylorMade, we are here to help. We are a professional independent mortgage broker, and we are here to help you by explaining each mortgage type in simple terms and identifying the best products for your circumstances.
We are on hand with friendly, helpful advice as well as the best mortgage rates on the market today. So, get in touch and see how we can help find the mortgage deal that is right for you.
