These are the ten 'most important' questions you should be asking your mortgage adviser, according to property experts.
The importance of choosing the right mortgage for your circumstances cannot be underestimated.
From a fixed rate to repayment, or interest-only - your mortgage can depend on the professional advice you receive and the answers to your questions.
If you're not sure where to start, the experts at David Wilson Homes will keep you right with their guide of the top ten 'most important' questions to ask.
The advice comes after a new survey conducted by the property experts.
The new research found that 53% of British homeowners believe they'd have a better mortgage deal if they knew the right questions to ask.
Their recent survey of 500 UK homeowners found that 25% of respondents were unsure what to ask a mortgage adviser.
For those who did know, the most important question was, “Are you an independent adviser?"
The experts have stressed that these findings highlight the importance of making informed decisions about significant financial commitments like buying a home,
They urged that before you sign on the dotted line, you need to be confident that your adviser can do the best work for you.
To help you out, the team has broken down the core questions into three areas:
- Questions about your mortgage adviser
- Questions about the process
- Questions about your chosen mortgage
Terry Higgins, Group MD at TNHG New Build Mortgage Services, has highlighted the significance of consulting a mortgage adviser before starting the process of buying a home.
Terry explained: “Securing a mortgage is a significant financial undertaking and one of the most important decisions you'll make in your lifetime.
"It's common to feel overwhelmed by the complexity of mortgage terminology, such as FTB's, LTV's, SVR's, AIP's, and ERC's, which can seem like learning a new language.
“Fortunately, assistance is available, and you don't have to navigate this journey alone. It's essential to consult with a knowledgeable mortgage broker, especially one who specialises in new build properties like New Homes Mortgage Helpline.
"They can expertly guide you through the entire process and ensure you secure the right mortgage product tailored to your individual needs.
“Keep in mind that relying solely on your bank may limit your options, as they can only offer their own products.
"In contrast, working with a mortgage broker gives you access to a vast array of choices, with New Homes Mortgage Helpline offering access to over 12,000 products.”
What questions should I ask about my mortgage adviser?
The experts have explained that there are two main types of mortgage advisers – independent advisers and those who work for specific lenders.
This will determine the type of advice you receive, so your first question should be:
1. Are you an independent adviser?
If your adviser is independent, they should cover the full market, meaning they can find your mortgage from all the available options.
If you are buying a new build, your best option is to speak to a New Homes Mortgage Adviser (NHMA).
They will have an overview of the entire market and advise accordingly, offering the best guidance for your situation.
By contrast, advisers tied to a specific lender won’t necessarily present you with the most suitable deals, just the ones associated with their lending partners.
2. What are your qualifications?
Ask this as early as possible. Mortgage advisers must be qualified to supply advice, so always check.
They must have a qualification recognised by the Financial Conduct Authority, such as the Certificate in Mortgage Advice & Practice (CeMap).
3. How do you charge your clients?
This will depend on the adviser, with some charging a set fee and others receiving a commission from the lender.
If it’s a flat rate, you’ll cover this charge.
4. Can you help me with any other products?
As a condition of getting your mortgage for your new home, you must have building insurance in place.
Your mortgage adviser can potentially help you secure a good deal on this too, but always compare their offer against the market rate.
What questions should I ask about the mortgage process?
If you're a first-time buyer, you’re bound to have plenty of questions.
Here, the experts have outlined key questions to ask during the process to ensure you’re prepared.
5. What are the different types of mortgages available?
There are numerous mortgage types on the market. Different ones will affect the interest rate you pay, the value of your monthly repayments, any charges you might face, and the length of your mortgage term.
It is important that your adviser explains everything thoroughly, illustrating how specific mortgages could work for your situation.
6. How long will it take?
This will differ depending on your financial situation and chosen lender. Your adviser will be able to give you an idea early in the process.
7. How much can I borrow?
Several factors play a part here, including your deposit, income, and current financial situation.
You will need to bring specific documentation to your first meeting to enable your adviser to make an informed decision and establish the right way to advise you.
What questions should I ask about my chosen mortgage?
Your adviser will source the most appropriate deal for you based on your conversations and the information you provide.
The following questions will help ensure you are happy with your chosen mortgage.
8. Why is this mortgage best for me?
Asking this question will provide context around why your mortgage will work for your financial circumstances.
9. What will my monthly repayments be?
There are several mortgage types. The main ones are repayment, interest-only, and combined repayment and interest-only; a good adviser will choose the right one for you.
Always check you’ll be able to keep on top of the repayments. The amount you pay will depend on the mortgage value, the length of the term, and the interest rate.
Before speaking to an adviser, there are plenty of online mortgage calculators (like this one from Money Saving Expert) that can provide some indication of your monthly repayments and what you can afford.
Recommended reading
- Expert warns against 6 common estate agent tricks when buying your new home
- How to sell your home quickly from Channel 4 star Phil Spencer
- What are the different mortgages? A full breakdown
10. Can I have a full breakdown of costs?
Make sure you’re aware of any other associated costs with your mortgage. You don’t want to be hit with unexpected fees down the line, which could eat into your budget.
Having the right mortgage in place will affect the rest of your life. Before you agree to anything, always make sure you’re happy with your mortgage adviser, their advice, and the products they can offer you.
Whether you’re a first-time buyer or an existing homeowner, we have a range of offers to help you make your move.
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