Here are some useful questions to ask a UK Mortgage Broker before taking him / her on.
· How long have you been in business for?
· Are you and/or your firm authorised by the FCA?
· What qualifications do you have? (See Mortgage Broker qualifications)
· Do you have a few references I can call, i.e. former clients?
· Are you insured against giving bad advice?
· How do you want to be paid? Fees or commission or both?
Don’t only judge your Mortgage Broker by what they say, but how they respond to your questions. Is it openly and directly? Or do you have difficulty getting a straight answer?
Any good Mortgage Broker should come across as responsive, available, straightforward and honest.
The Keyfacts and Initial Disclosure Documents
The new mortgage rules mean the brokers now have to automatically give you more information.
You will recognise the Initial Disclosure Document by the words ‘about our mortgage services’ and the ‘keyfacts’ logo
The Initial Disclosure Document gives you the key facts about the firm in five numbered sections:
1. The firm must tell you that the Financial Conduct Authority (FCA) regulates financial services.
2. It must explain whose mortgages the firm offers.
3. It must reveal what service the firm will provide.
4. It must state what you will have to pay for the service.
5. It must explain whether the firm will refund a fee in any circumstances.
The other major document you should get from your mortgage broker is the Key Facts Illustration (KFI).
When recommending a mortgage to you, the Mortgage Broker has to outline why they are recommending this – using the Key Facts Illustration (KFI).
The KFI document will include detailed information about the recommended mortgage, tell you about the level of service they are offering, and how much their fee or any commission will be.