Mortgage Broker Prices

feeblminds

How much should who pay for a mortgage broker's fee? Is £400-500 a reasonable price or is this too much? Don't broker's get commission or fees from the lenders?

herbiesjp

Some brokers are fee free and work only on the commission from the lender.

Ian_Griffiths_Halifax

It all depends on the size of the mortgage as to what the broker receives and which lender they are dealing with.

Also, dealing with an adverse credit mortgage would take a lot more time up than a low loan to value clean case and so I'd expect to have to pay for it.

£4-500 isn't unreasonable, but don't pay up front (or certainly not all of it) unless it will be refunded if it doesn't go through.

feeblminds

Thank you for your replies

MortgagePerson

Some Brokers charge fees, others dont and they rely on lenders commission and or Personal Insurance commissions

payless

Assuming they are also getting commission, and thecase is not very complex - then I would say this level is at very top end of acceptability-, if not a tad over - I know others have other views. I personally think you you shop around abit, there are advisers who charge less or only take commission who will likely provide thew same service

Ian_Griffiths_Halifax

feeblminds, how much are you wanting to borrow and what is the value of your property?

herbiesjp

As always when this question crops up - there is no right or wrong answer.

It is whatever you are happy to pay or the broker happy to accept.

Unfortunately it is only after the process has gone through that you will find out whether you think the service was good or not.

You can get the same service either going to a fee free adviser, or paying for the advice. It will boil down to the actual broker whichever route you take that will either reassure you or make you consider the other option next time around.

feeblminds

I am looking to borrow £150,000 and rent my current house. Was a bit annoyed as the broker didn't tell me he was charging a fee until the end of the second meeting.

If I pulled out now, would I still have to pay, as all he has done is answer some calls and has recommended a lender? I've not signed anything.

feeblminds

I should have said I have no adverse credit, it should be a very simple case and also I have the deposit ready to put down on the house.

dunstonh

If I pulled out now, would I still have to pay

You are not liable to pay any fee up to the point you are told a fee will exist for any work done from that point onwards. Disclosure of charging arrangements is typically done in the first 10 minutes of a meeting. You have to be given the chance to say Thanks but no thanks and walk away.