8 questions to ask your mortgage lender before signing
Getting a mortgage is a big deal
Buying a home isn’t just about finding the right place. It’s about making sure you get a loan that won’t turn into a nightmare later. You sign those papers, you’re locked in. No turning back. That’s why before putting pen to paper, you need to ask the right questions. Some people rush through this step, only to regret it when hidden fees, changing rates, or bad terms hit them hard. Don’t be one of them.
What type of mortgage suits my situation?
Not all mortgages are the same. Some have fixed interest rates, others change over time. Some last for 25 years, others stretch longer. Then there are repayment & interest-only options. A mortgage advisor can explain these in detail, but your lender needs to be upfront too. If they push one option without explaining why, that’s a red flag. You need to know the pros AND cons of each type before making a decision.
What’s the interest rate & is it fixed or variable?
Interest rates determine how much extra you’ll pay over time. A fixed rate means steady payments, while a variable rate can go up or down. If your lender can’t clearly explain how rate changes would affect you, walk away. Some people get caught with cheap introductory rates that skyrocket later. Ask how often the rate can change & what happens if the Bank of England raises interest rates. You don’t want nasty surprises in a few years.
Are there hidden fees I should know about?
Some lenders love sneaky fees. Arrangement fees, early repayment charges, valuation fees – the list can be long. Ask for a breakdown of EVERY cost. If they dodge the question or say “it’s all in the paperwork,” that’s a warning sign. Read the fine print too. Some lenders make it costly to leave their mortgage, trapping borrowers in bad deals.
Can I overpay my mortgage & are there penalties?
Paying extra towards your mortgage can save you thousands in interest. Some lenders allow it, some don’t. Others charge you if you pay off too much too soon. Ask for specifics. If they allow overpayments, find out if there’s a limit per year. If they penalise it, ask how much the fee would be. You want flexibility, not a trap.
What happens if I want to move house before my mortgage ends?
Life happens. You might get a new job in another city, need a bigger house, or downsize. Some mortgages are portable, meaning you can take them with you to a new property. Others aren’t, which means breaking the deal early. If you have to pay fees to leave the mortgage, find out how much. Some lenders charge thousands just to end early.
How much deposit do I really need?
Lenders often advertise deals that seem too good to be true. A small deposit might sound appealing, but it usually comes with higher interest rates. Some lenders also require borrowers to pay for private mortgage insurance if the deposit is too low. If you’re stretching your finances just to meet the minimum deposit, ask if there are other options. It might be worth waiting & saving a bit more to get a better deal.
What happens if I struggle with payments in the future?
No one plans for financial trouble, but life is unpredictable. If you lost your job or had a financial emergency, what support does the lender offer? Some have temporary relief options, like payment holidays. Others don’t care – you miss payments, they chase you for it. Understanding this now helps avoid panic if things go south later.
Is there anything specific in the fine print I should be aware of?
Some contracts contain clauses that can make a huge difference. Maybe the lender can change your rate without warning. Maybe there are restrictions on renting out the property. Maybe there are fees for things you didn’t even think about. Don’t assume anything. If you’re unsure about the legal jargon, ask them to explain it in plain English. If they hesitate, that’s a problem.
Final thoughts
Mortgages aren’t just numbers on paper – they affect your life for years. Asking these questions isn’t about being difficult. It’s about protecting yourself. A good lender will answer clearly & honestly. A bad one will dodge, rush, or pressure you. If something doesn’t feel right, trust your gut. There are plenty of lenders out there. Find one that works for you, not against you.