When Should I Speak to a Mortgage Broker Before Buying a House?

If you're thinking about buying a home, one of the best things you can do is speak to a mortgage broker before you start seriously looking at properties.

You don't need to have found your dream home, agreed a sale or even know exactly what you want to buy.

In fact, speaking to a mortgage broker early can help you understand your budget, identify potential problems and give you greater confidence when you're ready to make an offer.

Do I need to speak to a mortgage broker before looking at houses?

You don't have to, but it's often a good idea.

It can be tempting to start looking at properties straight away and worry about the mortgage later. The problem is that you may find a property you love before knowing whether the mortgage you need is affordable or achievable.

Speaking to a mortgage broker first can help you understand:

How much you could potentially borrow

How much deposit you may need

What your likely monthly payments could be

What mortgage options may be available

Whether your income and circumstances could affect your application

Whether there are any potential issues that should be addressed before applying

This gives you a more realistic idea of your property budget before you start making offers.

When is the best time to speak to a mortgage broker?

Ideally, before you start seriously viewing properties.

You don't necessarily need to have a property in mind.

An initial conversation can help you understand your financial position and give you an idea of what you may be able to afford.

Once you've found a property you're interested in, your mortgage adviser can then help you understand whether the particular property and purchase price fit within your circumstances.

The earlier you identify potential problems, the more opportunity you have to deal with them.

What if I haven't saved my deposit yet?

You can still speak to a mortgage broker.

In fact, it can be useful to do so.

Understanding how much deposit you may need and how different deposit levels can affect your mortgage options can help you set a realistic savings target.

For example, you may currently have a 5% deposit but be aiming to save more before buying.

Understanding the potential difference between different deposit levels can help you decide whether you're ready to buy now or whether continuing to save could be beneficial.

There are also different ways people build their deposit, including personal savings, Lifetime ISAs and, where acceptable to the lender, gifted deposits from family members.

What if I don't know how much I can borrow?

That's exactly the sort of question a mortgage broker can help you with.

Your potential mortgage borrowing isn't simply based on your salary.

Lenders can consider:

Income

Regular household expenditure

Existing debts

Credit commitments

Dependants

Employment circumstances

Deposit

Credit history

The type of income you receive

Different lenders can also have different affordability criteria.

This means that two people with the same salary don't necessarily have the same mortgage options.

Should I get a mortgage Agreement in Principle?

An Agreement in Principle (AIP), sometimes called a Decision in Principle (DIP) or Mortgage in Principle, can give you an indication of how much a lender may be prepared to lend based on the information available at that stage.

It can be useful when you're house hunting because it can demonstrate to an estate agent or seller that you've started looking at your mortgage options.

However, an Agreement in Principle isn't the same as a formal mortgage offer.

Your circumstances and the property will still need to be assessed before a mortgage can be formally approved.

A mortgage adviser can help you understand when an AIP is appropriate and which lender may be suitable for your circumstances.

Should I get an Agreement in Principle before making an offer?

It can be helpful.

Having an AIP in place can give you a clearer understanding of your potential budget before you make an offer.

It can also help you demonstrate to an estate agent that you have taken steps towards arranging your mortgage.

However, it's important not to obtain multiple agreements unnecessarily.

Some mortgage applications and credit searches can leave a footprint on your credit file, depending on the lender and the type of search carried out.

This is one reason why getting advice before making applications can be useful.

What if I'm self-employed?

If you're self-employed, speaking to a mortgage broker early can be particularly helpful.

Different lenders can assess self-employed income in different ways.

They may consider things such as:

Your trading history

Company accounts

Tax calculations

Tax year overviews

Salary and dividends

The length of time you've been self-employed

If you apply to a lender without understanding its criteria, there's a possibility that your income may not be assessed in the way you expected.

A broker can help you understand what information you're likely to need before you apply.

What if I'm a contractor?

Contractors can potentially obtain mortgages, but lenders don't all assess contract income in the same way.

Your contract length, daily rate, industry, employment history and the way you're paid can all be relevant.

If you're a contractor, getting advice before you start making offers can help you understand how your income may be viewed by different lenders.

I've helped clients with less straightforward income circumstances, including contract workers, through the mortgage process.

What if I have a poor credit history?

Having a less-than-perfect credit history doesn't automatically mean you can't get a mortgage.

However, it's important to understand your position before making applications.

Lenders may consider things such as:

Missed payments

Defaults

CCJs

How recent the issue was

The amount involved

Your current financial position

Your deposit

Your income and affordability

If you have concerns about your credit history, speaking to a mortgage broker before applying can help you understand the potential options and avoid unnecessary applications.

What if I'm already a homeowner?

Speaking to a broker isn't just for first-time buyers.

You may benefit from mortgage advice if you're:

Moving to a new home

Coming to the end of a fixed-rate mortgage

Considering a remortgage

Looking to release funds from your property

Thinking about buying an investment property

Considering becoming a landlord

The earlier you review your options, the more time you may have to plan.

What should I have ready before speaking to a mortgage broker?

You don't need to have everything prepared for an initial conversation.

However, having some basic information available can make the discussion more useful.

This could include:

Your approximate income

Your partner's income, if applicable

Your deposit or available equity

Existing mortgage balance, if you're a homeowner

Loans and credit commitments

Approximate monthly expenditure

Details of your employment

Any additional income

Information about any previous credit issues

Don't worry if you don't have all of this information immediately.

The important thing is to start the conversation.

Is it too early to speak to a mortgage broker?

Usually, no.

If buying a property is something you're considering in the next few months, it's worth understanding your position early.

Even if you're not ready to apply for a mortgage yet, an initial conversation can help you identify what you may need to do before you're ready.

For example, you might discover that you could:

Save a larger deposit

Reduce certain debts

Improve your credit position

Gather additional documents

Review your spending

Understand your realistic property budget

Finding this out before you make an offer can be much less stressful than discovering an issue halfway through a purchase.

Why speak to a mortgage broker before making an offer?

Buying a property is a significant financial commitment.

Getting your mortgage position understood before making an offer can help reduce uncertainty.

It can help you answer some important questions:

Can I afford this property?

How much deposit will I need?

How much could I potentially borrow?

Are there any issues with my circumstances?

What mortgage options might be available?

What could my monthly payments look like?

Having answers to these questions can give you greater confidence when you're ready to make an offer.

Looking for a mortgage in Bury or Ramsbottom?

If you're thinking about buying a home in Bury, Ramsbottom or the surrounding areas of Greater Manchester, I'd be happy to have an initial conversation about your circumstances.

You don't need to have found a property.

You don't need to know exactly how much you want to spend.

And you don't need to have all the answers.

My role is to help you understand your mortgage options, explain what may be available and guide you through the process when you're ready to take the next step.

I offer face-to-face appointments and video calls, so you can choose whichever works best for you.

Speak to Ben before you start house hunting

If you're considering buying a home and want to understand your mortgage position before you start making offers, get in touch for a friendly conversation.

Ben Garratt Mortgages & Protection

Mortgage advice for first-time buyers, home movers, remortgages and buy-to-let clients across Bury, Ramsbottom and Greater Manchester.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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Frequently Asked Questions

When should I speak to a mortgage broker?

Ideally, speak to a mortgage broker before you start seriously looking at properties. This can help you understand your potential budget and identify any issues before you make an offer.

Can I speak to a mortgage broker before I've found a house?

Yes. You don't need to have found a property before speaking to a mortgage broker. Understanding your potential borrowing and mortgage options can actually make searching for a property easier.

Do I need an Agreement in Principle before viewing houses?

Not necessarily. However, having an Agreement in Principle can help you understand your potential borrowing and may be useful when dealing with estate agents.

Can a mortgage broker tell me how much I can afford?

A mortgage broker can help you understand your potential mortgage borrowing based on your circumstances. However, the amount a lender is willing to offer isn't necessarily the same as the amount you should borrow, so your wider household budget should also be considered.

Is it worth speaking to a mortgage broker if I'm self-employed?

It can be particularly useful because lenders can assess self-employed income differently. A broker can help you understand what information may be required and which lenders may be appropriate for your circumstances.

Can I speak to a mortgage broker if I have bad credit?

Yes. Having previous credit problems doesn't automatically mean you can't get a mortgage. A broker can help you understand how your circumstances may affect your options before you make an application.