mortgage brokers complete guide

Choosing the right mortgage is a major decision that can have a significant impact on your financial health. With so many mortgage options available, it can be difficult to determine which mortgage best meets your needs, especially if you are a first-time buyer.

That is why we have come up with a guide that reflects on the services that mortgage brokers offer and the various advantages of working with a broker.

What is a mortgage broker’s role?

A mortgage broker specializes in locating lenders who can meet your mortgage requirements. Their guidance and recommendations on mortgages that are most appropriate for you help you achieve this. Once your mortgage application has been completed, they will take care of everything for you. To become a mortgage broker, one must have particular credentials from the Financial Conduct Authority (FCA).

Why should you hire a mortgage broker?

An experienced mortgage broker will only propose mortgages that meet your needs, and they must be licensed to do so. Furthermore, they will have access to exclusive mortgage deals that are not made accessible to the general public, and they will have a thorough understanding of which lenders are most likely to accept your mortgage request. You may be able to sue a mortgage broker if you discover at a later period that the advice they provided was incorrect.

How can I find a Mortgage Broker?

  • Inquire with friends and relatives – they may know of a broker they have used in the past and can suggest.
  • You might ask your estate agent about their favorite brokers if you have a strong relationship with them and trust them.
  • Look it up on the internet. Price comparison websites and sites like Mortgage Brokers Directory can assist you in locating a broker that meets your requirements.
  • When you believe you’ve discovered your broker, verify their credentials on the FCA website to ensure they’re genuine.

How to Choose a Mortgage Broker?

There are various types of mortgage brokers accessible to you. However, it is typically advised that you choose a broker referred to as a “Whole-of-Market” broker. This means they will be able to get any mortgage currently available on the market. In contrast, some brokers or mortgage advisors will only seek mortgages from a predetermined panel or those associated with a specific bank or building society and would only recommend mortgages from inside their own business. A Whole-of-Market mortgage broker will give you more options, improving your chances of getting the best deal.

Choose a Mortgage Broker

Before engaging in any discussions with a best mortgage broker, ensure that they are fully qualified and registered. Mortgage brokers in the United Kingdom are needed by law to be registered with the Financial Conduct Authority (FCA) to provide mortgage advice. Check the FCA’s Financial Services Register for the name of any UK mortgage broker.

There has been an increase in certified mortgage counselors as the UK housing market grows based on new construction developments and numerous government-sponsored house purchase programs. Because there are so many mortgage brokers to select from, it should be easy to locate one you can trust. However, it’s advisable to compare the mortgage services of various brokers before choosing an ideal one for your needs.

Read More: Making the right choice for a mortgage broker

Questions You Should Ask Your Mortgage Broker

  • How many lenders are on your lending panel?
  • What is the price of your services?
  • When did you begin working as a professional in your field?
  • What are the current mortgage rates?
  • Am I able to afford a mortgage payment?
  • Is it possible for me to transfer my existing mortgage to a new lender?

Fee and Commission of Mortgage Brokers

mortgage advisor fee

Keep in mind that mortgage brokers provide a vital service and must be compensated in exchange for getting you a fantastic bargain.

The amount they charge you is determined by either the type of mortgage you choose or the value of the mortgage. You should be notified upfront how much you’ll be charged and whether or not your broker will receive a fee. Be careful of brokers who refuse to disclose their costs or who say they won’t be able to offer you an exact amount until the transaction is finished.

No-fee brokers have emerged in recent years; these brokers will not charge you for their services since they will receive a commission from the lender who is providing the mortgage.

Advantages of working with a mortgage broker:

  • They will perform all of the homework comparing the market and seeing all of the available bargains.
  • They’ll go through your finances and instinctively know which mortgage is ideal for you – even if you have different thoughts.
  • They will help you save money and obtain unique offers from lenders.
  • They
  • will show you the overall cost of the mortgage, not just the interest rate.
  • They will thoroughly explain the characteristics of your selected mortgage, as well as any related benefits and drawbacks – for example, the benefits and possible drawbacks of tracker mortgages.

Mortgage Broker Jargon-Buster

Mortgage Broker Jargon-Buster

AIP (Agreement in Principle)

This document confirms that the mortgage lender will allow you to borrow a certain amount of money based on the terms of the AIP. In many cases, AIP paperwork shows a seller that a prospective buyer will have the money to purchase the property.

Early repayment charges (ERCs)

Early repayment costs (ERCs) are penalties you’d have to pay if you paid off your mortgage early.

Fixed-rate mortgage

This form of loan has a set interest rate for the duration of the loan, which is usually two, three, or five years.

Standard variable rate (SVR)

After the introductory offer term on your mortgage expires, your lender will charge you a standard variable rate (SVR).

APRC (Annual Percentage Rate of Charge)

The APRC displays the total cost of the mortgage, which includes all interest and any lender fees. Because the cost is based on repaying the mortgage over the agreed-upon duration, it may compare offers over the same amount of time.


When you miss a mortgage payment, you get into arrears. Your lender will have a predefined protocol for taking action based on how many payments are missed, and if payments are not made, your home may be repossessed.

Getting the most out of your mortgage broker 

Before you apply for a mortgage, your broker should: 

  • thoroughly examine your situation, 
  • explain the different deals and types of mortgages available to you
  • give you advice on which ones they believe will best suit your needs.

When it comes to locating your ideal house, it is critical to remember that you will never have the most satisfactory experience until you find the best mortgage broker for your needs. At Mortgage Brokers Directory (MBD) you can find highly competitive mortgage brokers that offer unbiased and thorough mortgage advice, whether you are a first-time buyer, remortgaging, buying a new home, or looking for a buy-to-let mortgage.