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Mortgage adviser fees

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?
«1

Comments

  • arkie
    arkie Posts: 153 Forumite
    sounds cheap to me ... i charge £250
    I am a Whole of Market 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.
  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    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
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • I charge a lot more than that, but then I know I'm good ;)

    Ian now sits back and waits for the flack
    I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.
  • dunstonh
    dunstonh Posts: 120,033 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If the £150 gives full whole of market access then its very cheap.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Loobysaver
    Loobysaver Posts: 764 Forumite
    Part of the Furniture
    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.
  • 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
    I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.
  • Toughluck
    Toughluck Posts: 317 Forumite
    If it was a £300,000 mortgage then no fee, but a £30K mortgage I'd definately charge more than £150 believe you me.
    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. Take advice with a pinch of sea salt!
  • Loobysaver
    Loobysaver Posts: 764 Forumite
    Part of the Furniture
    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
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    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
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • 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.
    I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.
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