How to Choose a Mortgage Broker

(If you’re not sure whether using a mortgage broker is right for you, you might want to start with our article on if you should use a mortgage broker.)

The wrong mortgage broker can cost you tens of thousands of pounds. Not through malice, but rather through lack of expertise or focus. So choosing the right broker can be critical.

It’s very easy to assume that all mortgage brokers are the same and will ultimately get you the same result, but that’s far from the case, the quality of the broker can make a real difference to the amount of money you can borrow, the rate you get and the speed of getting a mortgage approved.

A broker running a high-volume operation rather than a client-focused one might easily miss the lender who’d approve you for £100k more, or fail to spot the deal that would save you £200 a month.

The right broker, by contrast, will fight your corner. They’ll know which lenders actually understand your situation, how to present your application for the best outcome, and when to push back.

Start with the basics

First, you want a whole-of-market broker, not one tied to a small number of lenders. There’s no advantage to you of using a broker who’s limited in what deals they can offer you.

Second, you want a broker who’s used to dealing with mortgages of your size. Brokers earn commission based on mortgage value, so one whose average mortgage is £400k will typically spend half the time per client as one whose average is £800k. They need the higher volume of mortgages to make the same income. Don’t assume that just because you’re getting a larger mortgage they’ll adjust their process to spend more time on your mortgage.

Third, and most importantly, you want a broker who’ll take time to understand what you’re looking for. If they're running a conveyor belt operation, working through a script to give you a standardised offering, you might as well use a comparison site.

Shortlisting mortgage brokers

A common mistake is only speaking with a single broker. If you have initial conversations with three or four, you'll quickly calibrate what good looks like, and spot the ones who aren't.

Personal recommendations from people in similar circumstances can be a good starting point, but remember the best broker for a friend might not be the best for you. They all have different strengths. A broker who’s great at handling mortgages for someone with credit issues will be very different from one who’s great with contractors using umbrella companies.

However avoid recommendations or in-house brokers from estate agents. Their interests are misaligned with yours - they may be getting kickbacks, and the agent might use information from your broker application against you when negotiating the purchase price. There are strict rules prohibiting agents from requiring you to use their brokers, but nonetheless some estate agents will aggressively push you to do so.

When searching online, check reviews and try to find brokers aligned to your specific needs. If you’ve got any kind of complexity with your income, for instance if you have significant commission or stock based compensation or you want to use income from investments or property, find brokers with experience with your income structure. Similarly if you’re buying a non-standard property (e.g. thatched roof or a listed building) you can similarly benefit from a broker with relevant experience.

One thing you don’t need is a local broker, unless you feel strongly about meeting in person (and have a fairly straight-forward situation). Finding someone who understands your needs should generally take priority. The only exception is if local conditions make mortgages harder to get (e.g. costal erosion, former mining areas, etc) in those cases a local broker who knows which lenders are actively lending in the area becomes genuinely valuable.

At this stage, stay open-minded about fee versus fee-free brokers. While it’s natural to prefer fee-free, a broker who charges but finds you a mortgage you wouldn’t have found otherwise can easily justify their cost. That said, there are plenty of mediocre fee-charging brokers too, so don’t assume they’ll automatically be better than fee-free brokers. Most won’t charge until the mortgage is secured, so there’s no commitment unless they deliver.

Assess the individual, not just the firm

With mortgage brokers, the individual you’re working with matters almost as much as the firm. Firms control processes and fees, but the expertise and diligence of the individual broker makes a significant difference to your experience.

You can contact a specific individual broker directly (common with recommendations) or contact a firm and let them assign someone. In the latter case, check the assigned broker’s biography or LinkedIn before your call. If you’ve got a complex situation, you don’t want someone inexperienced. A broker who’s been around longer will have seen more edge cases and know how to navigate them.

Once you’ve got a short-list of brokers, book initial calls and email a brief description of your needs ahead of time. This lets them get up to speed ahead of the call - and reveals whether they actually spend the time to read it.

How to evaluate a mortgage broker

Once you’re on the call, this is the time you can really figure out if they’re the right broker for you. Online reviews can give you a broad indication of how good the firm is, but the call if where you find out if the individual broker is a good fit for you.

Have they read your email? If not, it’s a sign they’re a high-volume operation that prioritises quantity over quality.

Do they pay attention to details? If you find yourself repeating things or correcting them, that’s a red flag. Mistakes now don’t bode well for your actual mortgage application.

Are they focused on understanding your needs? Or are they just working through a script or talking over you? Some standard questions are often required for compliance, but the majority of the call should be a genuine conversation about your situation.

Do they actually understand your circumstances? Have they arranged mortgages for people in similar situations before? If you want to use RSUs as part of your application and your broker needs you to explain what they are, they’re probably not the right fit.

Do they answer your questions clearly? Can they give you an initial sense of what your options might look like?

You’ll know the right broker when you find them. The good ones make it obvious.

A mediocre broker will get you a mortgage. A good one will get you the right mortgage. That difference compounds for decades.