broker fees

dougconfused

Hi I currently have no mortgage and my house value is about £250000 i am in employement and have a good credit rating now i want to borrow £25000 on a mortgage over 12 years .a broker i have been recomended has come up with a deal from the pricipality b.s. at 5.39% fixed over 5years and no fees from them .the broker gets £250 from them and he is charging me a further £1000 handling and application costs so i now have to borrow £26000 is this normal or are his charges excessive does anybody know.

_Andy_

Some brokers charge, some don't. If you don't want to pay, use a fee-free broker.

dunstonh

IMO, a fee of £1000 on top of the commission is greedy for just a mortgage transaction. I can understand a fee if the commission is low and there is a difference e.g. £500 fee is charged but commission offset against that with you paying a difference.

There will be brokers out there who will not charge any fee or charge a much lower one. You have to decide if the service this one offers is worth you paying that much more than the others.

luckyfool

On a £25,000 mortgage I can understand a broker wanting to charge a small fee, as the procuration fee on the case is not going to cover costs or work involved. I would say around £200 would be reasonable, £1,000 is taking the mickey (unless the case is significantly more complex than it appears from your post). If you are not happy with that level of fee then shop around.

bacardi.

I am sure that in this market they would be plenty of brokers wanting to do for some income, and not charge you. With your ltv i would of thought you could get a better rate than that anyway

feisty1

bacardi. wrote: »

I am sure that in this market they would be plenty of brokers wanting to do for some income, and not charge you. With your ltv i would of thought you could get a better rate than that anyway

How do u know what his ltv is?

WillowCat

10%. Based on figures supplied in the original post

Ian_Griffiths_Halifax

Are you sure he gets £250 from the lender. I think you'll find that his KFI tells you that the broker will receive 'no more than £250'. It's more likely to be £75 i.e. 0.3% of the loan amount, but I can't confirm this as I don't have my procuration fee figures with me.

Regardless of what he receives, I still think that a £1000 fee is excessive for a £25000 mortgage even in these tough times for brokers.

If you don't want to pay the fee, do the work yourself and find another deal yourself or negotiate on the fee and offer £500 max in my opinion.

minimike2

£1000.... Christ.

My fee would be £250 on that. £1000 is taking the !!!!.

dwsjarcmcd

This broker is having a laugh. A 4% fee plus the proc fee.

Given they have been greedy, I think I would go to the Principality yourself and save any fee payment.

koexelek

bacardi. wrote: »

I am sure that in this market they would be plenty of brokers wanting to do for some income, and not charge you. With your ltv i would of thought you could get a better rate than that anyway

Absolutely.

Some brokers are getting greedy and trying to make more out of individual cases to compensate for their drop in business levels.... but they are cutting their own throats in the long run.