Fees on small mortage

slopemaster

I saw a broker for an initial discussion. He told me he was whole-of-market, and no fees. However, now I have gone back and confirmed the amount I need (£ 35 000 on a £95 000 property) he has said i will have to pay £400 fee, as they will get so little commission (£100) on a small mortgage. Is this reasonable? Is it likely to be universal, or should I look elsewhere? Is it feasible to negotiate - eg I will pay you £400 if you repay me all the commission?
The guide on this site says max 1% fee, but mebbe that is based on much bigger loans?

Grateful for any help.

herbiesjp

For that kind of mortgage amount, it may even be better to stay with your current lender after having taken into account fees etc

There are brokers who will still do the mortgage fee free for you and there will be others who will charge less

If they keep the commission from the lender as well than that works out to more than 1%

By all means negotiate - but you may want to look at other broker options as well beforehand

slopemaster

Thanks for the quick reply.
I do not have a current lender though, this is a property I am buying

But, yes, i will look at other options, thanks

herbiesjp

No problem

At that level you are extremely fee sensitive, so you would need to look at maybe higher rates with lower fees, as opposed to the headline rates lenders like you to see with crazy arrangement fees