Mortgages explained: A guide to the financial side of home-buying

Buying a home is an exciting milestone – but understanding the financial side of things and how to get a mortgage can sometimes feel pretty mind-boggling. From affordability and deposits to choosing the right lender, there are a lot of moving parts.

That’s where mortgage brokers come in.

At Share to Buy, we work with a panel of experienced mortgage brokers who understand the home-buying process and the affordable housing schemes many first time buyers, second steppers and downsizers alike rely on. During our Share to Buy Live events, such as our Home Shows, Homebuyer Days and Expert Days, buyers have the opportunity to speak directly with these specialists to ask questions and explore their mortgage options.

To simplify the process, we’ve outlined the key information you need to help you understand what a mortgage broker does, how they can help, and the types of questions you might want to ask.

What does a mortgage broker do?

A mortgage broker is a financial specialist who helps you find and apply for a mortgage that suits your circumstances.

Rather than going directly to a single bank or lender, a broker can compare mortgage products from multiple lenders and guide you towards options that work best for you.

They’ll also help you understand what lenders look for when assessing applications, making the process clearer and less stressful.

A mortgage broker can help with:

• Understanding how much you might be able to borrow.
• Explaining different mortgage products and interest rates.
• Comparing lenders and mortgage deals.
• Preparing your application.
• Supporting you through the approval process.

Many buyers find that speaking to a broker early in their journey helps them feel more confident and informed about their next steps.

Understanding mortgage affordability

One of the first things a mortgage broker will help you explore is affordability – in other words, how much you may be able to borrow from a lender.

Lenders look at several factors when assessing affordability, including:

• Your income.
• Your regular outgoings.
• Existing debts or credit commitments.
• Your credit history.
• The size of your deposit.

They will use this information to estimate how much they may be willing to lend and whether the mortgage payments are likely to be sustainable for you.

A broker can help you understand these factors and explain what lenders are looking for, which can be extremely helpful if you’re preparing to apply for a mortgage.

The mortgage process: A simple overview

While every purchase is different, the mortgage journey usually follows a similar path:

1. Initial discussion

You speak with a broker about your finances, deposit, and the type of home you’re looking for.

2. Affordability assessment

The broker reviews your income and outgoings to estimate how much you may be able to borrow.

3. Agreement in Principle

If appropriate, a lender may provide an Agreement in Principle (AIP), which gives an indication of what they may be willing to lend.

4. Property reservation or offer accepted

Once you find a home, you can move forward with a full mortgage application.

5. Full mortgage application

Your broker submits your application to the lender and helps gather the required documents.

6. Mortgage offer

If approved, the lender issues a formal mortgage offer, allowing you to progress towards completion.

Throughout this process, your broker acts as a guide and advocate, helping ensure everything runs as smoothly as possible.

Questions you may want to ask a mortgage broker

Our Share to Buy Live events are designed to help buyers get personalised advice. Preparing a few questions in advance can help you make the most of your conversation with our experts.

Here are some useful questions to consider:

Affordability questions

• How much might I realistically be able to borrow?
• How much deposit will I need?
• How do lenders calculate affordability?

Mortgage questions

• What type of mortgage might suit my situation?
• What interest rates are currently available?
• What is the difference between fixed-rate and variable-rate mortgages?

Questions about my personal circumstances

• Will my credit history affect my mortgage options?
• How does being self-employed impact a mortgage application?
• What documents will I need to provide?

Questions about the buying process

• When should I apply for a mortgage?
• How long does mortgage approval usually take?
• What costs should I plan for beyond the deposit?

Even if you’re still exploring your options, brokers are there to help you understand the process and your potential next steps.

Preparing to speak to a mortgage advisor

If you’re attending a Share to Buy Live Home Show, Homebuyers Day or Expert Day, it can help to have some key information ready beforehand.

You might want to come prepared with:

• An idea of your deposit amount.
• Details of your income.
• An estimate of your monthly outgoings.
• Questions about your circumstances or goals.

You don’t need to have everything worked out – these conversations are designed to help you build a clearer picture of what may be possible.

Tools and resources to help you get started

At Share to Buy, we aim to make the financial side of buying a home easier to understand.

On our website, you can find:

• Affordability calculators: Estimate how much you may be able to borrow based on your income and deposit.

• Our mortgage comparison tool: Search for a mortgage to meet your affordability needs.

• Mortgage guides and FAQs: Learn more about deposits, lender requirements, and the mortgage application process.

• Our mortgage broker panel: Connect with experienced brokers who understand affordable homeownership schemes.

These resources are designed to help you feel informed and confident before speaking with an expert.

Speak to experts at a Share to Buy event

Understanding the financial side of buying a home early on can help your journey run more smoothly.

Our dedicated Expert Days are specifically designed to allow buyers to speak directly with experienced mortgage brokers, ask questions, and gain valuable insight into the next steps.

By preparing in advance and learning about the financial process, you’ll be in a much stronger position when the time comes to move forward with your purchase.

See dates for our next Expert Day here. You can also keep up to date with our other events, from large-scale exhibitions and regional road shows to on-demand webinars here.