Martins View On Using Mortgage Brokers...

HarriettPotter

Many thank GMS

BigNigeTheTrucker

Hi, just wanted to know a ball park figure of what a broker would charge.
My mother-in-law is in a bit of a financial squeeze and has been talking to an adviser/broker. He has made 3 visits so far and the plan is for her to take and interest only mortgage. Before you ask, no I don't know the full details, however, my wife and I are concerned by the £2000 fee to be paid. It seems quite high to me, but having briefly looked at the companies website this is the minimum fee they charge.
Does anyone else feel that this is indeed a high fee? He is coming back again, but is now getting insistent that she must sign the next time, which is also ringing alarm bells.

GMS

BigNigeTheTrucker wrote: »

Hi, just wanted to know a ball park figure of what a broker would charge.
My mother-in-law is in a bit of a financial squeeze and has been talking to an adviser/broker. He has made 3 visits so far and the plan is for her to take and interest only mortgage. Before you ask, no I don't know the full details, however, my wife and I are concerned by the £2000 fee to be paid. It seems quite high to me, but having briefly looked at the companies website this is the minimum fee they charge.
Does anyone else feel that this is indeed a high fee? He is coming back again, but is now getting insistent that she must sign the next time, which is also ringing alarm bells.

Mother in Law so I assume middle aged at least? How will she repay an interest only mortgage?

£2000 sounds high but without knowing what is involved it is difficult to comment further.

If she is not happy with it then she should find another broker or negotiate a lower fee

BigNigeTheTrucker

She is in her early sixties and should be eligible for state pension soon. I am unsure if she has made AVC's, but she has been lead to believe she is entitled to around £180/week. That is what she has been told. I recommended she spoke to AgeUK as they have people who can ensure this is the case. She was/is a self employed recruitment agent and so am unsure of her income. She is also not in the best of health so work is an issue. I did suggest a lifetime equity release scheme may be better as there would be no payments and her long term health I am sad to say does not look good. She is stressed which is not helping her health due to struggling to pay her current obligations.
Her property is worth in excess of 200000 and she only requires about 40000 to clear her obligations.
They were also talking about putting an amount in trust for my wife and her brother, but I was unsure as to the time frame required for this to be in place as she may need to go into care at some point.

I am recommending she speaks to someone else, but the wolves are very near her door so time may be an issue.

treme

Hi,

This is my first post so apologies if this is in the wrong place or breaches etiquette in some way.

I am an FTB in the midst of arranging a mortgage for a shared ownership property (yeah, yeah i know, but it works for me) and was struggling to get a decent 90% mortgage until a broker found a couple of great mortgage deals from a lender they work exclusively with. My concern is that I had approached this lender independently prior to my dealings with this lender and they werent able to offer me anything at all, never mind the attractive rates the broker is suggesting.

My question is whether it's possible the broker has access to exclusive deals with the lender that i wouldnt be able to access independently or if they are keen for me to apply to the lender as they receive 50% of the fee regardless of whether the mortgage is offered.

Any advice most welcome.
T.

dunstonh

My question is whether it's possible the broker has access to exclusive deals with the lender that i wouldnt be able to access independently or if they are keen for me to apply to the lender as they receive 50% of the fee regardless of whether the mortgage is offered.

Brokers have always had exclusive deals. Sometimes they are better than the branches. Sometimes much the same, sometimes the branches are better. Lenders only pay once mortgage is advanced.

treme

Thanks for reply.

I am required to pay a direct fee to the broker at the point of application - 50% of which is refundable if mortage doesnt advance. My worry was that this might influence broker's enthusiam for me to proceed. Is this normal?

Dave_Ham

Hi - you would be better off starting your own thread as you are likely to get more responses.

That said, tell us the deal that you have been offered, the circumstances and the fee and we can take a view.

We charge a fee on application, but this is always fully refundable if a solution is not found and offered. This way you know that we are motivated and commited to spending our time effectively.

There is nothing wrong in what your broker is doing, provided all of this is clearly laid out in your documentation.

dunstonh

I am required to pay a direct fee to the broker at the point of application - 50% of which is refundable if mortage doesnt advance. My worry was that this might influence broker's enthusiam for me to proceed. Is this normal?

Yes it is normal. The broker is going to be doing a lot of work. If you dont complete, then without that fee contingency he would not be paid.

kangaroo321

It is helpful to first ask if the mortgage broker is independent or attached to another company. A brokerage company is a better option as they have larger database.