Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Leon12
    • By Leon12 30th Nov 17, 4:37 PM
    • 17Posts
    • 1Thanks
    Leon12
    Mortgage Broker FAR fee
    • #1
    • 30th Nov 17, 4:37 PM
    Mortgage Broker FAR fee 30th Nov 17 at 4:37 PM
    Hi All,


    I am dealing with a mortgage broker at the moment who seem OK but they have a fixed rate fee of £699 for arranging the mortgage which is payable on completion. In the Mortgage Illustration document they have given me they refer to this fee as a 'FAR Fee' so does anyone know what a 'FAR fee' is?


    Also they have proposed adding that £699 cost on top of the mortgage as opposed to me just paying it directly to them? Any thoughts or ideas as to why they may be proposing doing it like this?


    Many thanks,


    Leon
Page 1
    • kingstreet
    • By kingstreet 30th Nov 17, 4:45 PM
    • 32,363 Posts
    • 17,374 Thanks
    kingstreet
    • #2
    • 30th Nov 17, 4:45 PM
    • #2
    • 30th Nov 17, 4:45 PM
    I take it the firm's initials aren't F A R?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • ACG
    • By ACG 30th Nov 17, 5:00 PM
    • 15,879 Posts
    • 8,131 Thanks
    ACG
    • #3
    • 30th Nov 17, 5:00 PM
    • #3
    • 30th Nov 17, 5:00 PM
    Ask the broker these questions?
    I would prefer my customers to come to me and ask about anything like this. You are paying them £700 after all.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • amnblog
    • By amnblog 1st Dec 17, 7:35 AM
    • 10,070 Posts
    • 3,925 Thanks
    amnblog
    • #4
    • 1st Dec 17, 7:35 AM
    • #4
    • 1st Dec 17, 7:35 AM
    Also they have proposed adding that £699 cost on top of the mortgage as opposed to me just paying it directly to them? Any thoughts or ideas as to why they may be proposing doing it like this?
    Originally posted by Leon12

    Probably because they feel they have a sounder chance of getting paid that way.

    Not a policy we use, but simply a case of you deciding whether to borrow an extra £699 or not? Adding any fee to the loan means you will pay interest so it will cost you more in the long run.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Neutrinno
    • By Neutrinno 1st Dec 17, 10:25 AM
    • 151 Posts
    • 69 Thanks
    Neutrinno
    • #5
    • 1st Dec 17, 10:25 AM
    • #5
    • 1st Dec 17, 10:25 AM

    Also they have proposed adding that £699 cost on top of the mortgage as opposed to me just paying it directly to them? Any thoughts or ideas as to why they may be proposing doing it like this?
    Originally posted by Leon12
    I'd imagine they have done this as this is the preferred method for customers to pay broker fees due to the size of them.

    They should however be gaining clear consent from you upfront on whether or not you want fees adding to loan, adding fees increases the amount of interest you'll repay on the mortgage.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • dunstonh
    • By dunstonh 1st Dec 17, 12:55 PM
    • 89,867 Posts
    • 56,532 Thanks
    dunstonh
    • #6
    • 1st Dec 17, 12:55 PM
    • #6
    • 1st Dec 17, 12:55 PM
    Also they have proposed adding that £699 cost on top of the mortgage as opposed to me just paying it directly to them?
    You should be given the option of paying it as a bill or adding it to the mortgage. If you being encouraged to add it to the mortgage without the opportunity to pay it instantly then that would be considered a missale. The FOS have ruled on these in a number of cases. They have no issue with it being added to the mortgage as long as you are made aware of the choice and consequences. They also prefer it is added to a sub account with no tie in allowing you to pay it back without penalty after the mortgage is advanced. However, that is mainly in cases where it was recorded on the documentation that you intended to pay the fee via the mortgage but repay that bit earlier than the mortgage term.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Leon12
    • By Leon12 1st Dec 17, 5:07 PM
    • 17 Posts
    • 1 Thanks
    Leon12
    • #7
    • 1st Dec 17, 5:07 PM
    • #7
    • 1st Dec 17, 5:07 PM
    Thanks all.


    The firms initials are not F.A.R so I can only assume it is some kind of broker industry terminology but in any case it is clearly their set fee for the work they are doing in finding the mortgage for me. I will ask them to confirm exactly what it means in any case.


    I am also going to insist that I pay it separately as I do not want the fee added to my mortgage and therefore gaining interest on it as some above have correctly said.


    Thanks again for the help.


    Leon
    • dunstonh
    • By dunstonh 1st Dec 17, 5:35 PM
    • 89,867 Posts
    • 56,532 Thanks
    dunstonh
    • #8
    • 1st Dec 17, 5:35 PM
    • #8
    • 1st Dec 17, 5:35 PM
    The firms initials are not F.A.R so I can only assume it is some kind of broker industry terminology
    Its not broker terminology.

    When a firm abbreviates something, its either something that is well known for using initials or something that was referred to earlier in the same document (to save repeating more words than necessary).

    Just chuck them an email and ask them what FAR stands for. And then let us know the answer!
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,326Posts Today

7,788Users online

Martin's Twitter