Buying & selling
How to choose a mortgage broker: the six questions that matter
A mortgage broker will shape the biggest debt you ever take on, and most people pick one because the estate agent had a leaflet. Six questions at the first conversation tell you whether this is the right broker for your case — and whether they are working for you.
Check the FCA register first
Anyone advising on mortgages in the UK must be authorised by the Financial Conduct Authority, or be an appointed representative of a firm that is. The register is public and free. Search the firm's name before you share a payslip with anyone. No entry, no business — and an entry with restrictions is worth reading.
Whole-of-market or panel?
Some brokers can place you with lenders across the market; some work from a panel of a few. Both are legitimate. What you want is to know which, and — for a panel broker — how many lenders are on it. The estate agent's in-house broker is often panel-based, and often the agent earns a referral fee; that does not make them bad, but it makes them not independent.
How they are paid, and what it means
Every broker receives a commission from the lender when a mortgage completes. Some charge you nothing on top; some charge a fixed fee, commonly a few hundred pounds; some a percentage of the loan. A fee-free broker is not worse — for a straightforward case they are usually the right choice. A fee buys specialism: self-employed income, adverse credit, buy-to-let through a company, an unusual property or a large loan. Ask when the fee is payable, and prefer on offer or completion to on application.
Mortgage broker fees, explained — fee-free, fixed and percentage — and when a fee is worth itThe six questions for the first call
- Are you whole-of-market, or which lenders can you place with?
- How are you paid — commission, fee, or both — and when is the fee due?
- Have you placed cases like mine before? Name yours: contractor, limited-company director, first-time buyer with a gifted deposit, buy-to-let.
- Will you also compare my current lender's product transfer, if I am remortgaging?
- Who handles my case day to day, and how quickly do you reply?
- What happens to the fee if the purchase falls through?
Signs of a good one
- They ask about your circumstances before they mention a rate.
- They tell you what could go wrong with your application before the lender does.
- They explain why a recommended product is right, not just that it is the cheapest.
- They chase the lender, the valuer and the solicitor without being asked.
- They tell you when going direct to a lender, or a product transfer, would beat anything they can offer.
Red flags
- A fee payable on application, in full, before anything has been submitted.
- Pressure to sign quickly, or to take insurance products in the same breath as the mortgage.
- Vagueness about which lenders they use.
- Not on the FCA register, or an appointed representative of a firm you cannot find either.
Questions people ask
How do I check a mortgage broker is legitimate?
Search the FCA register, which is public and free. Anyone advising on mortgages must be authorised or be an appointed representative of an authorised firm. If you cannot find them, do not proceed.
Is a fee-free mortgage broker as good as one who charges?
For a straightforward case, usually yes — they are paid by the lender's commission and can search across lenders. A fee buys specialism for harder cases: self-employed income, adverse credit, buy-to-let through a company, unusual loans.
Should I use the estate agent's mortgage broker?
You can, but compare. In-house brokers are often panel-based and the agent may earn a referral fee. You are never obliged to use them, whatever is implied, and an offer cannot be conditional on it.
What does whole-of-market mean?
That the broker can place you with lenders across the market rather than a fixed panel. It is not a guarantee of the best deal — a few lenders only deal direct — but it is the widest search available through a broker.
What should I ask a mortgage broker at the first call?
Whether they are whole-of-market, how they are paid and when, whether they have done cases like yours, whether they will compare a product transfer, who handles your case, and what happens to the fee if the purchase falls through.
When should I speak to a broker?
Before you start viewing. An agreement in principle takes a day or two and tells agents you are serious; it also surfaces any problem with your case while there is time to fix it.
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