Things Your Mortgage Adviser Might Ask You And Why It Matters

When it comes to mortgages and property investment, there’s no one-size-fits-all solution. Some people thrive on risk, while others break into a cold sweat at the thought of fluctuating interest rates. Some want to invest in city apartments, and others dream of a countryside retreat with a mortgage lower than their takeaway budget.

Much like dating, finding the right mortgage or investment strategy is about knowing yourself. What’s your risk tolerance? Your long-term goals? Can you handle a bit of unpredictability, or do you need things set in stone?

We like to think of ourselves as financial matchmakers—we’ll ask the right questions to understand what kind of investor (or homebuyer) you are. Here’s what we might ask, and why it matters:

1. "How comfortable are you with monthly payments going up?"

If the idea of your mortgage rate increasing sends you into a spiral of financial dread, a fixed-rate mortgage might be your best bet. On the other hand, if you’re willing to ride the wave of variable rates in hopes of saving money, a tracker mortgage could be your match.

2. "Do you see yourself staying in this property long-term, or is this a stepping stone?"

If you’re in it for the long haul, locking in a solid deal makes sense. But if you plan to move within a few years, flexibility is key—you don’t want to be stuck with hefty early repayment charges when your dream home suddenly comes on the market. Most mortgages are portable nowadays, but your affordability and criteria still has to stack up on the new property to achieve this.

3. "How do you feel about debt?"

Some people see a mortgage as a necessary evil; others see it as a tool for financial growth. If you’re someone who loses sleep over owing money, an aggressive repayment strategy might be best - think overpayment allowances or a shorter mortgage term. If you see property investment as a long game, leveraging borrowed money might not faze you.

4. "What’s your plan B if interest rates or property values change unexpectedly?"

Investing in property is all fun and games until the market shifts. If you’re buying a rental property, what happens if you struggle to find tenants? If you’re stretching your budget on a house purchase, could you still afford it if interest rates rise? Knowing your contingency plan is crucial.

5. "Would you rather have predictable payments or lower overall costs?"

A shorter loan term means higher monthly payments but less total interest. A longer term keeps payments low but costs more in the long run. It all comes down to your cash flow and financial priorities (and many times, your age).

6. "Are you planning to build a property empire, or just looking for a cozy nest?"

If you’re eyeing multiple investment properties, your approach to financing will be different than if you’re just buying your forever home. You might need a different type of mortgage product or strategy to maximize your returns. A repayment mortgage will build long-term wealth and certainty in retirement, and is recommended for all residential borrowers. However, an interest-only option would allow you to maximise cashflow on a rental property, while relying on capital growth for longer term gains.

7. "How hands-on do you want to be as a landlord?"

If you’re considering buy-to-let, think about whether you want to deal with tenants directly or pay for a management company. Also, factor in upcoming legislation changes—being a landlord isn’t as passive as it used to be. Here's more to think about when it comes to financing your investment property.

8. "What’s your timeline for investing or buying?"

Some markets are red-hot, while others are more stable. If you’re looking to invest, timing matters. Are you prepared to wait for the right opportunity, or do you need to move quickly?

Final Thoughts: The Right Strategy for You

Just like in dating, knowing what you want (and what you can handle) is half the battle. Considering and researching all options will help you find your perfect financial match—whether that’s a long-term commitment, a strategic short-term fling, or something in between.

So, before jumping into the property market, take a moment to ask yourself: What’s my financial personality? Because at the end of the day, the best mortgage advice is the one that works for YOU.