The 12 questions you MUST ask a mortgage broker before committing to a new deal
Taking a mortgage is one of the biggest financial decisions and comes with a lot of responsibility.
For many buyers, assigning a mortgage broker can help them make sense of the market and decide which option is most suitable for the conditions.
A mortgage broker may be particularly beneficial for those who have not been found for a long time with smaller deposits, self -employed or current employers who may need extra help to find the right agreement.
However, as with any consultant, it is important to do your research before assigning a mortgage broker.
There are 12 questions from your potential mortgage broker to determine whether it is suitable for you and to have the most suitable mortgage agreement for your needs.
Prepare: To get a mortgage is one of the biggest financial decisions you will give
1. Which lenders do you work with?
A mortgage broker working with a wide range of loans can offer you more options. Some work with a selected ‘panel’ of banks and building societies, while others cover the entire market.
Online mortgage broker better mortgage President Jonathan Bone said: ‘If they only work with a few distinguished, you may be missing better opportunities elsewhere.’
John Charcol Mortgage Technical Manager Nicholas Mendes said to Daily Mail: ‘A broker panel’s breathing is determined by the options you will see directly.
‘Market access, high street banks, building societies and expert loans all mean that they are in the game.
‘This increases the likelihood of unusual income, property type or credit history with a really appropriate lender.’
‘With a limited or connected offer, you cannot even see a product that will be better for you.’
2. Are you independent?
Brokers connected to certain lenders may be limited to their bids.
Bone, ‘Independent mortgage brokers offer neutral advice because they are not dependent on a particular lender.’
3. Are you arranged?
Mortgage brokers should be arranged by the financial behavior authority in one way.
You can check the online recording of FCA to provide the company you think you are organized or the individual broker.
FCA says on the website that ‘Mortgage brokers should be authorized by us or that another company with relevant permissions should be appointed representatives’.
4. How do you pay and which fees include?
Mendes, from the beginning of the clarity on wages and commissions will then help to prevent ‘bad surprises’, he said.
‘It also helps you compare the brokers over value rather than the title promises.
“ Knowing when the fees will be – open, when the offer or complete – allows you to manage the cash flow during a costly movement. The full explanation for fees reduces the risk of affecting the advice you receive. ‘
Bone, Better, added: ‘Some mortgage brokers receive a fee for their services, while others are paid a commission by the lender.
‘Ask for the relevant costs to be spilled clearly – some brokers can offer free initial consultants, but then they may receive a fixed fee or percentage fee.’
5. Who will you share my financial details?
Check with whom the vehicle plans to share your financial information.
Bone, ‘If a Mortgage broker is recommended by a real estate agent, it is important to know your financial information and how they share it.
‘You want to ensure that your mortgage broker will work in your best interests and how much you can meet to influence property negotiations, such as not explaining sensitive details.
‘In order to protect your financial privacy, it is important to clarify the broker’s privacy policy.’
6. Will you make hard or soft checks in my credit file?
It is important to know what kind of credit control to you and when.
Mendes said: ‘Bad sequential hard searches, an insurer can erode your score just before looking at him. Soft searches are less interventionist and can be used to measure suitability.
‘A careful plan limits the footprint as you move your case forward. This protects the approval if you need a plan B and protects the options. ‘
Options: Moving your mortgage agreement means staying with your current lender when you buy a new house
7. Which stress tests will be used to evaluate the purchasability?
Mortgage lenders test your budget to a higher rate than you will pay at the beginning.
Knowing the ‘stress ratio’ they use or a basketball court estimation of what may happen helps to determine a realistic price range and avoid unsuccessful practices.
Mendes, “ This is a broker who model this with you time and disappointment ‘he said.
8. What will be the real cost of Mortgage?
Title ratios, chunky product fees, valuation and legal costs, and short incentives may be removed.
The total cash cost, for example, allows you to compare it, such as asking for two or five years.
To run these numbers, you can also use this IS MONEY’s real cost Mortgage calculator.
Mendes said: ‘Sometimes a slightly higher ratio for minimum wages is generally cheaper than the rock base ratio for a large wage. A good broker will clearly demonstrate this, so you can see the difference in pounds and PENS. ‘
9. Can mortgage be transported?
Carrying your mortgage agreement means staying in your current mortgage agreement when buying a new home.
According to Yorkshire Building Society: ‘It can be an option that saves money, especially on the way to an agreement with payment fees and early repayment fees, because you may have to pay.
‘The mortgage ratio you are already in can save money if your lenders are lower than any of their current agreements.’
Mendes added: ‘Transport is not automatic confirmation. Nevertheless, you must exceed purchasing controls and the new property must meet certain criteria.
‘Timeline may be tight and chain complications can remove a pacepot from the rail. You may also need a different load loan by changing the total cost. Knowing the process and traps in advance can save an agreement from making an agreement. ‘
10. Why is this agreement best for me?
There are different types of mortgages available and your broker should help you find the most suitable one for you.
Mendes said: ‘The right structure should reflect your revenue model, saving habits and tolerance to the ratio movement.
‘Budgeting that may be invaluable for families improves certainty The first time buyers. The viewers can work if you can process fluctuations and ask for the potential to benefit if the rates fall. Offset mortgages can significantly reduce interest for protectors and freelancers carrying cash balances. ‘
In addition, if any, you need to clarify what early repayment fees are applied and how much you can pay if you are in a position to do.
11. Which documents will I have to submit?
Most Mortgage applications are caused by documents or inconsistencies.
Mendes said: ‘Frequent bank statements, salaries or sa302s, identity documents and deposit evidence to have, accelerates things.
‘Bank behaviors to the application also help to be insured. A detailed checklist from your broker can avoid days or even weeks. ‘
12. What happens if the mortgage application is rejected?
It is important to know what your broker will do if Mortgage applications do not always go smoothly and things do not go to the plan.
If your first mortgage application is rejected, your broker should be the B plan.
Mendes said: ‘Criteria and appetite may change even for strong cases.
‘Ready return avoids losing acceleration and keeps your movement alive.
‘Open wage terms reduce anxiety if you need to change the product or change the product. You want a non -reactive broker after a mishap that is proactive under pressure. ‘
