Mortgage adviser fees

Loobysaver

I have never used a mortgage adviser before so don't really know the score.

I have been recommended one by a friend. She has said that she will get back to me tomorrow about any possible offers and charges £150 on completion of the mortgage.

Does that sound about right?

arkie

sounds cheap to me ... i charge £250

payless

A lot will do it for just the commisison ( assuming she is taking commission + £150)
But if you are happy with service.. then £150 is not unreasonable

see http://forums.moneysavingexpert.com/showthread.html?t=1097523 for greater discussion

Ian_Griffiths_Halifax

I charge a lot more than that, but then I know I'm good

Ian now sits back and waits for the flack

dunstonh

If the £150 gives full whole of market access then its very cheap.

Loobysaver

Well the adviser charged my friend £200 but is charging me £150 so do you think it may be related to the size of the mortgage as the amount I need is smaller than what she did.

Ian_Griffiths_Halifax

Loobysaver wrote: »

Well the adviser charged my friend £200 but is charging me £150 so do you think it may be related to the size of the mortgage as the amount I need is smaller than what she did.

That depends. What did your friend borrow and what do you need?

I'd say it was more of a BDTD Ratio that would encourage somebody to lower their fees.

BDTD = Broker Desperation To Demand

Toughluck

If it was a £300,000 mortgage then no fee, but a £30K mortgage I'd definately charge more than £150 believe you me.

Loobysaver

Toughluck wrote: »

If it was a £300,000 mortgage then no fee, but a £30K mortgage I'd definately charge more than £150 believe you me.

It's a £47k mortgage. Oh well, I'll see what she comes up with, she did come recommended so don't know why it's so cheap then.

payless

Even at that level some advisers will offer a fee free service ( although if its free- or even if not- check if they include direct deals in their research ), as whilst the deal might earn them only £140- £200 , its a free client for potential other business/ referrals... some other advisers might decline the business / or try and charge fees , yet will happily pay for leads ( that don't always come good) or pay for advertising.

That said if the adviser is recommended and you feel comfortable / offers you the service you want ( ie face to face) and you would rather not search out a free adviser I don't see £150 as a barrier

Ian_Griffiths_Halifax

Loobysaver wrote: »

It's a £47k mortgage. Oh well, I'll see what she comes up with, she did come recommended so don't know why it's so cheap then.

At the end of the day you need to feel comfortable with the person you are dealing with and while their earnings from your case might only be around £150 from the lender and £150 from you, they may be expecting/hoping that you will do any protection (Life Assurance etc) with them, which will increase their earnings for your case.

If you need the protection, then do let them quote for you as they are providing a very cheap service and need to make a living somehow. Just think though:

Do you NEED it?
Do you WANT it?
Can you AFFORD it?

If the answer to any of these is NO, then don't take it.