Prospective homebuyers urged to vet mortgage brokers with a 12-question checklist

Homebuyers are urged to use a 12-question checklist before appointing a mortgage broker, because the choice of adviser can shape loan terms and total costs of buying a home. Mortgage brokers can help buyers with smaller deposits, the self-employed, or people who have not been with their current employer long by clarifying options, comparing products, and guiding the process. However, experts warn that the value of the advice depends on the broker chosen, and the research done beforehand to ensure the guidance is suitable and not swayed by lender incentives.

The checklist covers broad topics that matter for both price and process: which lenders the broker works with, whether the broker is independent, how the broker is regulated, how fees are charged, who will access your financial information, what type of credit checks will be used, how affordability is tested, the true cost of the mortgage beyond the headline rate, whether the loan can be ported to a new property, why this deal is best for the buyer, what documents are needed, and what happens if an application is declined. The guidance draws on comments from Jonathan Bone, head of mortgages at Better, and Nicholas Mendes, mortgage technical manager at John Charcol.

Panel breadth matters because a broker who works with a broad range of lenders can present more options. 'If they work with only a select few, you could be missing out on better deals elsewhere,' Bone said. Mendes added that the breadth of a broker s panel directly determines the options seen; whole-of-market access means high street banks, building societies and specialist lenders are all in play, increasing the odds of matching unusual income, property type, or credit history to a lender that truly fits. He cautioned that 'With a restricted or tied proposition, you may never even see a product that would have been better for you.'

Independence matters because a broker who is tied to certain lenders can be limited in what they can offer. Bone explained that independent mortgage brokers offer impartial advice because they are not tied to any specific lender. The independence argument is often cited as a reason to seek an adviser who works with multiple lenders rather than one tied to a single panel.

Regulation provides another layer of protection. Mortgage brokers should be regulated by the Financial Conduct Authority in one of two ways. Buyers can check the FCA online register to ensure the firm or individual broker they are considering is regulated. The FCA states that mortgage brokers must either be authorised by the FCA or become an appointed representative of another firm that has the relevant permissions.

Fees and compensation are also a major consideration. Mendes emphasizes that clarity on fees and when they are due helps avoid surprises and allows buyers to compare brokers on value rather than only headline promises. Knowing when fees are due—upfront, on offer, or on completion—helps manage cash flow during a costly move. Bone adds that some mortgage brokers charge a fee for their service, while others are paid a commission by the lender. A clear breakdown of costs is essential, because transparency reduces the risk that remuneration influences the recommendation given.

Data privacy is another practical concern. If a broker was recommended by an estate agent, it is important to know how personal financial information will be shared and who may access it. Buyers should understand how information is used and who may see it, to ensure the broker works in the buyers best interests and that sensitive details such as what the buyer can afford are not disclosed in a way that could influence negotiations. Clarifying the broker s policy on confidentiality helps protect financial privacy.

Understanding what type of credit checks will be performed helps borrowers manage risk. Mendes notes that poorly sequenced hard searches can erode a credit score right before an underwriter looks at it. Soft searches are less intrusive and can gauge eligibility. A careful plan minimizes the footprint while still moving the case forward, protecting approvals and preserving options if a plan is needed.

Affordability is not only about the monthly payment. Lenders test the budget at a higher rate than the initial rate, so knowing the stress rate or at least a ballpark figure helps set a realistic price range and avoid wasted time on deals that cannot pass underwriting. A broker who models this with a client upfront saves time and avoids disappointment.

The true cost of the mortgage often matters more than the headline rate. Headline rates can distract from product fees, valuation and legal costs, and short incentive periods. Asking for the total cash cost over two or five years lets buyers compare like-for-like. Sometimes a slightly higher rate with minimal fees is cheaper overall than a rock-bottom rate with a big fee, and a good broker will lay out the pounds and pence difference clearly so the buyer can decide.

Portability is another consideration. Porting a mortgage deal can be a good money-saving option especially if a deal is mid-term and exit fees apply, since it could avoid paying a new arrangement fee. It can also save money if the current rate is lower than lender s current deals. Porting is not automatic approval, however; affordability checks still apply, and the new property must meet lender criteria. Timelines can be tight and chain complications can derail a port. A top-up loan at a different rate may be needed, changing the overall cost. Knowing the process and pitfalls upfront can save a deal from falling apart mid-move.

Choosing the right deal means aligning with the buyer s income pattern, savings, and tolerance for rate movement. The right structure can provide budgeting certainty; fixed rates offer stability, trackers expose borrowers to rate movements but can work if rates fall, and offset mortgages can dramatically reduce interest for savers and for those who hold cash balances. Buyers should also be clear about any early repayment charges and how much they can overpay if their finances allow.

Documents play a crucial role in speed and success. Having precise bank statements, payslips, or SA302s, identity documents and deposit proof ready speeds the process. Clean bank conduct in the run-up to the application helps underwriting, and a detailed broker checklist can shave days or weeks off the timeline.

Applications do not always go smoothly. If a mortgage application is declined, the broker should have a plan B. Criteria and appetite can shift mid-process, even for strong cases. A prepared fallback avoids losing momentum and keeps the move alive. Clear fee terms reduce anxiety if there is a need to switch lender or product, and buyers should work with a broker who is proactive under pressure rather than reactive after a setback.

How to find a new mortgage can be a timely consideration for borrowers whose fixed-rate deals are ending or who are buying a home. Quick mortgage finder tools and rate calculators are common resources, and readers are often advised to compare rates and speak to a broker early. This is Money maintains a partnership with London & Country Mortgages (L&C) to provide fee-free expert mortgage advice and tools. Borrowers can lock in a rate six to nine months in advance in many cases, often with no obligation to take it. Most mortgage deals allow fees to be added to the loan and charged only when the loan closes, which means borrowers can secure a rate without paying expensive arrangement fees. However, the option can complicate matters if the fee is not paid at completion and interest accrues on the amount, so it may not suit everyone. Buyers should act promptly to lock in a rate while still considering potential shifts in prices and borrowing power.

Buyers who are considering buy-to-let properties should note that the regulatory framework differs, and the FCA does not regulate most buy-to-let mortgages. This underscores the importance of seeking independent advice and using transparent cost comparisons when assessing options.

Overall, the takeaway is straightforward: talk to a broker, verify the breadth of lender options, demand clear fee terms, and use trusted tools to compare costs. The goal is to find a mortgage that balances rate, fees, and features with the buyer s financial situation and risk tolerance.