Martins View On Using Mortgage Brokers...

hennib

Martin

My mortgage broker charged me an admin fee for sourcing the best mortgage deal for my needs/circumstances. On completion of my remortage they obtained commission from my new lender and also charged me a 'processing fee' of £875! What did they process? They sourced the mortgage and put in the application - end of story on their part. How can they charge a processing fee when once the application went in nothing was processed other than by my new lender? This fee was not explained to me and I did, in fact, in the presence of another party ask if I had to pay anything further (once the admin fee was paid) and was told 'No that's it'. I feel completely mis-informed/puzzled as to how they actually earn this extra 'processing fee'.

Any advice would be appreciate?

dunstonh

My mortgage broker charged me an admin fee for sourcing the best mortgage deal for my needs/circumstances. On completion of my remortage they obtained commission from my new lender and also charged me a 'processing fee' of £875! What did they process?

The fees were disclosed before you signed up so identifying them isnt a problem.

They sourced the mortgage and put in the application - end of story on their part

End of story? I wonder why my costs are so high if it was just that. I better go back to my accountant and tell him to disregard the £70k of expenses and just record the postage.

Any advice would be appreciate?

perhaps you can look at the key facts about our services document which is the first document supplied to you. That tells you the charges you will pay for the advice given. It should be disclosed on there.

Or you could look at the key facts illustration showing the costs of the mortgage as it should be disclosed on there as well.

Or maybe ask the adviser. After all, they know their charging structure better than we do.

Was commission offset done against the £875 fee or was it 875 plus commission? Or did the lender pay no commission which is why you are paying £875?

dunstonh

reported post 194 as it is self promoting spam and against FSA rules. Its not the first time this person has lied to advertise on this board.

Paul_Herring

tysonrmark wrote:

[spam snipped]

Reported.:rolleyes:

Roger_Embury

Martins guidelines are excellent : the best help and advice that I have received ... and I am sure I am not he only one , is from !!!!!!!!!!!!!!!!!!! It really is worth a look : no jargon , speedy service and well researched advice.

Roger

CardiffCentral

Hiya,
This is my first post, although I've been reading posts on here for a while now. I'm sure I should be asking a good broker this question but I thought I'd ask you guys before I go hunting for one.
My situation is as follows;
I've just made an offer on a house for £320k. If accepted, I'm going to need a mortgage for £130,000. I know getting a mortgage won't be too much of a problem as my deposit is so large, but after that things start getting tricky. Ideally I'd like the repayments to be very small for the first 2 or more years. I'm guessing this should be at a fixed rate which would make repayments easier to deal with. My brother suggested a 15 year term but I'm willing to go as long as 20 or even 30 years as I can pay off the mortgage early anyway (eg.12years etc) can't I? The goal being an easy life over the next 2/5 years whilst I set-up and expand my business and, more immediately, have funds left to modernise the house!! Although I understand I may have to pay more for a secure immediate future, I don't want to be roped into a rip-off deal my dads old school accountant will no doubt give me.

CardiffCentral

..I guess what I'm actually asking is what would be a good deal here? The best possible deal I could have right now...:money:

WildHaggis

your choices are pretty simple: ask a broker, or do the research yourself.

The mortgage market is extremely competitive, but most of the lenders charge the very similar APR's (overall rates used for comparison). Most of the cheap two or three year term deals come with high arrangement fee (a setup fee). Ask your broker to compare total costs over a three or five year term, to make sure that the savings on the first payments are worth the overall cost increases. And, find a mortgage which allows overpayments in order for you to pay it off early.

CardiffCentral

You're right, I'm seeing one next week... :beer:

newsaver123

i really found this advise useful, can you please recommend a fee free broker that i can use? appreciate your assistance! i've already had a look/search for this under this thread and have not found anything.... Thanks!