Help Just read the small print

tiredredhead

Help I have a mortgage advisor coming here in an hour who claims to be independent and will work for my benefit. However her fees are very high or i think they are it says "maximum fee of up to 4% of the mortgage amount or £3995 whichever is lesser, payable on completion"

Is this normal?

We usually dont pay any fees the broker gets paid from the lender which of course means they may not be doing the best for me. My mortgage is £240k so 4% is quite alot when i hope to chip away and pay it off early.

Any help would be appreciated.

grogdog

tiredredhead wrote: »

Help I have a mortgage advisor coming here in an hour who claims to be independent and will work for my benefit. However her fees are very high or i think they are it says "maximum fee of up to 4% of the mortgage amount or £3995 whichever is lesser, payable on completion"

Is this normal?

We usually dont pay any fees the broker gets paid from the lender which of course means they may not be doing the best for me. My mortgage is £240k so 4% is quite alot when i hope to chip away and pay it off early.

Any help would be appreciated.

dont answer the door, seriously this is extremely high fees and if your income is sufficient and there is no credit problems tell her where to go.
as an idea i would normally charge between £195 and £395 and hope to get any associated life assurance

tiredredhead

Great thanks I think i was conned once before by Carrington Carr who promised i would be a customer for life, but when it came to remortgage they were very slow to want to come out again and i ended up with another advisor. Who probably charged me again. She says she has access to great deals and on their website they are advertising a 5.4% fixed rate but so far no one has given me the details. Supposedly she will look at our whole set of circumstances and get us to where we want to be.

Leon_W

If you are reading that right then tell em to FO !

Many brokers don't charge fees and for a £240k one I certainly wouldn't, under £50k then yes, a fee is reasonable and even then it would only be £2-300.

Some people may be under the impression that by paying a fee that somehow the service will be better, in my experience that is not generally the case.

If you do meet, don't sign anything and atleast get a second opinion.

Regards

herbiesjp

Whoa!!!!!

Now those are fees worth avoiding!

You can find fee free advisers (get paid by the lender) or advisers that charge a fee, that will give you good honest advice by not for £4k!

Have a look around for someone else

grogdog

if you want to be really sneaky , let her come but dont sign anything. let her tell you who she thinks is best and approach them yourself, she is not going to have better deals than other ifas. good luck

ps if she is really cheeky make her a cup of tea/coffee and put a couple of eye drops in it , she wont move to far tomorrow;) (seen it on reps uncovered on tv the other night)

tiredredhead

Great thanks i'll post what happens.
Just making tea now for her, she's in the other room.

Leon_W

Please do tiredredhead I'm sure we will all be interested in how the fee is justified !

Regards

grogdog

leon, how do i put the mortgage advisor sticky on?

Leon_W

Hi grogdog

Yep, that's the ticket if you are an adviser, get the signature.

Read the Code of Conduct here http://forums.moneysavingexpert.com/showthread.html?t=325378

And you can add the prescibed signature through your profile.

Regards

TighterThanTwoCoatsOfPain

Well!??? You had the deal of the century yet?