What questions should you ask your mortgage broker as a first-time buyer?

When you’re buying a property for the first time, the mortgage process can feel overwhelming. Meeting with a mortgage broker is an excellent step toward securing a loan that fits your needs. But how do you make the most of that initial meeting? Asking the right questions will help you gather the information needed to make informed decisions.

In this article we look at key questions to ask your mortgage broker when you are planning to buy your first home.

1. What types of mortgages are available to me?

There are various types of mortgages, including fixed-rate, variable-rate, and tracker mortgages. Each comes with different terms and risks. Ask your broker to explain the pros and cons of each option based on your financial situation. This will help you understand which mortgage structure aligns best with your goals.

2. How much can I afford to borrow?

Your broker can provide an estimate of how much you might be able to borrow based on your income, expenses, and credit score. Understanding your borrowing limit helps set realistic expectations for your property search.

3. What will my monthly payments be?

Ask for an estimate of your monthly mortgage payments, including interest, taxes, and insurance (if applicable). It’s important to understand the full cost of homeownership to ensure it fits within your budget.

4. What interest rate can I expect?

Interest rates vary based on the type of mortgage and market conditions. Ask what kind of rates you qualify for and whether a fixed or variable rate is better suited to your needs. Clarify with your broker how rate changes could impact your future payments.

5. What are the upfront costs?

Mortgages come with a variety of upfront fees, including arrangement fees, valuation fees, and legal costs. Ask your broker to break down all the associated expenses so you can budget accordingly.

6. What deposit will I need?

The deposit you’ll need depends on the loan-to-value (LTV) ratio. Your mortgage broken can advise on typical deposit requirements and whether any low-deposit schemes or government incentives, like Help to Buy or shared ownership, are available.

7. How long should my mortgage term be?

The term of a mortgage (commonly 25 or 30 years) affects both your monthly payments and total interest paid. Ask your broker to explain the benefits and trade-offs of different term lengths.

8. Are there early repayment or exit fees?

If you plan to pay off your mortgage early or switch lenders, it’s important to know if there are penalties for doing so. Ask about early repayment charges and any restrictions that could limit your flexibility.

9. What happens if interest rates rise?

If you’re considering a variable or tracker mortgage, ask how rising rates would affect your payments. It’s wise to run different scenarios to understand potential risks.

10. What assistance do you offer during the application process?

Some brokers handle every aspect of the mortgage process, while others may only provide initial guidance. Ask about the level of support you can expect, including help with paperwork and liaising with lenders.

11. Are there any first-time buyer or government schemes I qualify for?

First-time buyers may benefit from government schemes and incentives designed to make homeownership more accessible. Ask your mortgage  broker if you qualify for any schemes that could lower costs or improve borrowing terms.

12. What documents will I need to provide?

Knowing what documentation is required—such as proof of income, bank statements, and credit history—helps you prepare and avoid delays.

13. What are my next steps?

Finally, ask your broker what you should do after the meeting. This might include gathering documents, improving your credit score, or getting a mortgage in principle ahead of time in preparation for viewing properties.

At Lawlors we have partnered with Embrace Financial Services to provide you with access to expert mortgage advice. To discuss your options, simply book an appointment today to get you the best mortgage to suit your individual needs.