Mortgage Broker FAQs: Your Questions Answered by Lucky Mortgages

Buying a home is exciting, but the mortgage process behind it raises a lot of questions, especially the first time round. Lucky Mortgages, a mortgage broker based in Newcastle City Centre, believes buying a house should be exciting rather than stressful, and spends a good chunk of every client relationship simply answering questions honestly. Here are the ones that come up most often.

Do I need a deposit, and how much?

Almost all residential mortgages require a deposit, typically starting from around 5-10% of the property value for many standard products, though the exact minimum depends on the lender, your credit profile and the type of property. A bigger deposit generally unlocks better interest rates, because it reduces the lender's risk, so it's often worth saving a little longer if you're close to a lower loan-to-value bracket.

What's the difference between being pre-approved and actually approved?

An Agreement in Principle is a lender's initial indication of how much they might lend based on the information you've given them, but it isn't a guarantee. Full approval only comes after a formal application, including a property valuation and full underwriting of your income, credit history and documentation. Treat an AIP as a useful planning tool, not a done deal.

Can I get a mortgage if I'm self-employed?

Yes, though the process usually needs more documentation — typically two to three years of accounts or tax calculations, rather than a handful of payslips. Some lenders are considerably more comfortable with self-employed applicants than others, which is exactly the kind of thing a broker who knows the market can steer you toward.

Should I fix my rate or go with a tracker?

A fixed rate gives you certainty over your monthly payments for an agreed period, which suits people who want predictable budgeting. A tracker rate moves with the Bank of England base rate, so payments can go up or down. Neither is universally "better" — it depends on your appetite for risk and how tight your monthly budget is.

How long does the whole process take?

From application to completion, a straightforward purchase often takes around eight to twelve weeks, though it can be quicker or considerably slower depending on the property chain, how quickly documents are supplied, and how busy the lender's underwriting team is at the time. Remortgages without a related purchase are usually faster.

What happens if my application gets declined?

A decline from one lender doesn't mean a decline everywhere — different lenders have different criteria, and a broker who works across the whole market can often identify a more suitable lender rather than simply reapplying to the same one. It's worth understanding the actual reason for a decline before applying again, since repeated applications in a short period can affect your credit file.

Do I need a solicitor as well as a broker?

Yes — a broker arranges the mortgage itself, while a solicitor or licensed conveyancer handles the legal side of the property transaction, including searches, contracts and the transfer of ownership. The two roles work alongside each other rather than replacing one another.

What is a mortgage broker actually for, compared to going direct to a bank?

Going direct to your own bank means you only see that bank's products. A broker compares mortgages across many lenders, including some not available directly to the public, and can advise on which lender is most likely to accept your specific circumstances — which matters more than people expect, especially for self-employed applicants, those with a smaller deposit, or anyone with a slightly complicated credit history.

Is protection insurance something I need to sort out too?

It's not compulsory, but it's worth discussing. Life cover, income protection and critical illness cover all exist to make sure a mortgage remains affordable if something goes wrong, and arranging it alongside the mortgage itself is usually simpler than trying to sort it separately later.

Lucky Mortgages, based in Newcastle City Centre and rated 5 stars from 23 Google reviews, works through exactly these questions with every client, aiming to make what can feel like an overwhelming process considerably more straightforward.