Mortgage Commissions

kam_bhar

Anyone know what sort of commissions or fees mortgage companies give to brokers for selling one of their mortages.

Need this as ammo to throw at a EA whos been somewhat rubbish in selling our house.

Kam

payless

Most normal lending is done on 0.25 - 0.45% ( 0.35% being the most common to independents, although large EA chains might get more from some ! )
a few lenders pay extra for long term fixed rates and/or online processing

0.5 on Buy To lets is fairly common

1% on credit history problem lending

AndrewSmith

Hi,

What does the mortgage commission have to do with selling your house?

Although the broker may work withing the estate agency office, and even employed by the same 'Parent' company he will work in a completely different way to the residential estate agent.

The issue of mortgage commissions is only relevant if you are dis-satisfied with the mortgage advice you have been given, as the Broker has no control over the residential staff and how effectively they market your house.

In answer to your question though, it depends on the type of mortgage and the lender concerned.

The average commission on a standard residential mortgage will be approx 0.35% of the mortgage amount. This equates to £350 per £100,000 mortgage, payable only on legal completion of the loan.

For Buy to let the average commission is approx 0.4%, as it self certify.

Adverse credit mortgages can vary from 0.35%-1%

Remember that this is a cost incurred by the Lender not you.

Hope this helps

Andy

AndrewSmith

@ Payless

Great minds think alike...........................well very nearly

kam_bhar

AndrewSmith wrote:

Hi,

What does the mortgage commission have to do with selling your house?

Andy

The mortgage advisor is part of the same group (countrywide). I'm hoping to use this as leverage when it comes to getting the EA to pull his finger out. And get them to agree to let another agent market my house within the sole agency period.

Kam

Doozergirl

I know who financed the deposit on my IFAs holiday home now!

payless

Andrew - I think it was close enough

K-B , I see where you are coming from, although neither you ( the vendor) nor the agents can force a buyer to use their services ( in most cases I would advise buyers against it, but then I would ! ) .... PLUS you asked about "mortgage commissions " .... National Chains will also want to be earning money on the insurances as well ..

kam_bhar

Thanks for ther info, never though about insurance another thing to throw at them, the prospect of withdrawning my mortgage and insurance (and subsequent commissions) must foucus their minds

Kam

AndrewSmith

Possibly,

But you may lose any fees you have already paid to the broker such as Valuation or Booking fees.

Also, do you really want to have to go through the application process again, further credit searches / credit score being recorded on your file, just to prove a point to the Agent?

ANdy

lynzpower

KAm- not really.

If you are ditching them as mortgage provider, then you have to go and find someone else to provide- taking time. Why will you taking longer about things possibly make your EA work harder? I think its likely to have the opposite effect.

Also If youve had an inprinciple decsion that you dont take, my understanding is that your credit rating will suffer if you dont take it.

I went with Alexander Hall as my broker ( fantastic & v highly recommended) they got £500 out of the Abbey for arranging it. Small beer I think.

nitinpatil

Hi Guys

Sorry this question doesnt make any contribution to this thread but i thought i will get some good advise.

My question is when i remortgage my house, can my wife acts as mortgage broker so that she will get the comission and I will use that comission as mortgage fee? does it needs any extra qualification/Registration with some financial institute or society ?

Thanks in advance

Pats