How to Choose a Mortgage Broker: What to Look For

“What rate can you get me?”

It is the first question almost every client asks, and it is a perfectly reasonable one.

The honest answer, from any broker worth using, is “it depends”. Not because we are being evasive, but because the rate you can actually secure depends on you, your income, your credit history and the property you want to borrow against.

That honest answer is also the clearest way to tell a good broker from a bad one.

One will ask you questions before talking numbers. The other will give you a number first and ask questions later, often when it is too late to matter.

The warning signs of a poor broker

Most bad broking is not dishonest. It is lazy.

The aim is to get you on the hook quickly, and the easiest bait is a low number.

Watch out for these:

• Headline rates before a single question. If a broker quotes you a rate before knowing your income, credit history or the property, it is a marketing figure, not a quote. The cheapest products are usually reserved for borrowers with large deposits, clean credit and straightforward income.
• “Best buy” tables dressed up as advice. Anyone can read a comparison table. A rate you will never qualify for is not the best rate for you. It is just a number.
• Little interest in the property. Lenders care a great deal about what they are lending on. Holiday lets with occupancy restrictions, flats above commercial premises, non-standard construction and short leases can all rule out a large part of the market.
• Rushing to an application. Pushing ahead before the full picture is known saves the broker time. It costs you time later, when underwriters ask the questions that should have been asked at the start.
• Vague answers about how the market was searched. A good broker can explain why a lender was chosen and, just as importantly, why others were ruled out.

The cost of getting this wrong is real. A declined application can leave a footprint on your credit file, delay a purchase, put a chain at risk and leave you paying valuation fees twice.

What a good broker does differently

A good mortgage broker treats your case as a piece of research, not a sale.

That means three things.

They get to know you

How you are paid matters as much as how much you earn. Salaried, self-employed, contractor, director’s dividends, overseas income, pension or rental income: every lender treats these differently. So do your age, your existing commitments, your plans and any blips on your credit file.

They get to know the property

Location, construction, tenure, use and condition all shape which lenders will consider it. A holiday let, an HMO, a multi-unit freehold block or a property you plan to refurbish each opens some doors and closes others.

They research the market properly

Lender criteria run to hundreds of pages and change constantly. A good broker checks criteria, speaks to underwriters where a case is unusual, and tests the options before you commit to anything.

The aim is the right lender first time, on the best terms available to you, rather than the best terms available to someone else.

This is where a broker earns their fee. Anyone can find a low rate. The value is in finding a rate you will actually be offered, from a lender that is comfortable with your circumstances, on a product that fits your plans.

Why the fact find comes first

At Drake, the first thing you will receive after an enquiry is a fact find. It is not paperwork for its own sake. It is the single most important part of the process, because every recommendation we make is built on it.

A complete fact find does three jobs.

1. It helps find the right lender. Criteria vary widely. Income structure, credit history, property type, age, portfolio size and future plans all affect which lenders are open to you. The fuller the picture, the more accurately we can identify the lenders most likely to say yes.
2. It secures the best available rate and terms. The sharpest products are often limited to borrowers who meet very specific criteria. Accurate information lets us search for the most suitable and cost-effective options for you. Without it, any rate would simply be guesswork.
3. It avoids delays, surprises and declines. Information that surfaces late can trigger extra underwriting questions, requests for more documents, revised terms or a declined application. Getting it right at the outset makes for a smoother journey.

How to get the most from it

• Complete every section. If something does not apply, write “N/A” rather than leaving it blank.
• Be completely open about credit issues, however minor they seem. A missed phone bill from three years ago is far easier to place when we know about it upfront.
• Use up-to-date figures for income, mortgage balances, property values and rental income.
• If you are unsure about anything, make a note on the form and we will talk it through.

Five questions to ask any broker

1. Are you truly whole of market, or do you work from a restricted panel?
2. What do you need to know about me and the property before you can recommend anything?
3. How will you search the market, and will you explain why other lenders were ruled out?
4. How are you paid, and what fees will I pay, and when?
5. Do you regularly place cases like mine?

A good broker will welcome every one of these.

If the answers are vague, or the conversation keeps coming back to a headline rate, that tells you what you need to know.