What Will a Mortgage Broker Want to Know?

Getting to the stage where you’re ready to speak to a mortgage broker is an exciting time. When you’re in the position to take out a mortgage, there are several things that a bank, building society or mortgage broker will ask you beforehand.

While it may feel uncomfortable to discuss so many personal, financial questions, this information is needed by a mortgage broker, bank or building society to help decide how “safe” it is to lend to you. The information will also help formulate how you’re able to repay the mortgage and how much they’re willing to lend you. But what questions specifically will a mortgage broker ask you at an initial consultation meeting?

What will a mortgage broker want to know?

image of two people collecting keys to a new house

A mortgage broker will want to know about your lifestyle and financial situation before a bank agrees to offer you a mortgage – this can also formulate a deciding factor in the types of mortgages available to you.

Typically, they will begin by asking how much you want to borrow, and questions that will help provide more insight into how much you are able (and comfortable with) repaying each month. A mortgage broker may also ask you about future plans, such as if you’re planning on having children in the near future as outgoings will likely increase as well as looking into your area of work and if your career offers opportunities for advancement.

Here’s what a mortgage broker will want to know:

  1. What is your job and how much do you earn?

This question is paramount to a mortgage application. The type of job you have will allow the lender to understand how secure your income is.

If you’re employed then you will need to bring 3 months of payslips. Sometimes affordability is based on a two-year work history, so the broker may also ask you how long you have been with your current employer.

If you’re self-employed then you’ll need to show two years of accounts at least, and the choice of mortgages is often limited.

  1. How much are your monthly outgoings?

The amount you spend each month is a key indicator of how much you can afford and what your monthly payments are likely to be. Prior to sitting down with a mortgage broker, take the time to work out the monthly expenditures that you can’t compromise on, such as food, bills, utilities, travel and any typical hobbies, leisure or personal expenses. After you have deducted this from your monthly salary, how much are you left with?

You don’t want to be living paycheck to paycheck, so make sure that you also consider setting aside money for savings and ensure that you are not living above your means. Typically, a mortgage broker will also ask for your last 3 months bank statements and will likely ask you more questions about your monthly spending to help determine affordability.

  1. Do you have any existing debts?

This needs to be discussed with your mortgage broker, especially whether you are paying them back successfully or not. If you are making regular payments, then lenders will see this as a positive as it shows you’re reliable when it comes to managing a loan and finances in general. 

  1. What is your credit history?

Your credit score plays a big role in how much you can borrow. Lenders and banks will look at your credit history and this will influence their decision based on your previous history of borrowing and repaying debt.

Before speaking to a mortgage broker, you can check and improve your credit rating months in advance. You can do this by paying off any debts, paying bills on time, closing any unused credit cards, direct debits or mobile contracts.

  1. Do you have any dependents or children?

Children are expensive. A mortgage broker will usually ask this as lenders want to know as it can affect your affordability and how much you are realistically able to pay each month on a mortgage. Similarly, if you have any other dependents such as elderly parents or grandparents who require financial support, then you’ll need to demonstrate that you’ve budgeted for the cost so that it will not affect your affordability.

  1. How much is your deposit?

In the current mortgage market, there are lots of different types of mortgages available, including 95%, 90% and 85%. The higher your deposit, the lower the interest rate. This means that 5% deposits have a higher interest rate and LTV ratio, compared to a 10% or 15% deposit.

The higher your deposit, the cheaper your home purchase is likely to be as it poses less of a risk for lenders.

  1. What is the value of the property you are looking to purchase?

The last question a mortgage broker will likely ask is what type of property and how much are you aiming to purchase? This enables them to work out how much you’ll need to borrow and calculate the lender’s offer.

Contact Robin Mortgage Design

Are you ready to speak to a mortgage broker? No matter whether you’re based in Milton Keynes, Crowthorpe or Essex, you will want to discuss your options before buying a house with a mortgage broker first.

If you would like to discuss your mortgage options further, then our team of professional mortgage advisers at Robin Mortgage Design would be happy to help. Give us a call on 0333 242 386, or you can fill out our online enquiry form, and we’d be happy to help.


Now it’s time for the legal bit: YOUR HOME BE REPOSSESSED IF YOU DO NOT KEEP UP TO DATE WITH YOUR MORTGAGE PAYMENTS

Robin Mortgage may charge a fee for arranging your mortgage, a typical fee would be £395.00 but could be up £1,495.00 depending on your circumstances.

The information in this blog is only valid for the date it is written.