Mortgage broker fees

smcqis

Ive seen a broker and was wondering what are the going rates with an average broker? i know the fee he says he will charge but just curious as to what range you felt was justifies and whats was too expensive in your eyes

happybroker

there are wild differences in what brokers charge. Some will charge a % of the loan amount (as much as 2% or more!) some charge a one off fee of, say, £250 on completetion. Some charge at application, some on obtaining a mortgage offer and some will allow you to choose to either pay a fee and offset the commission payable against this or not pay a fee (or pay a smaller one) and allow the adviser to receive the commission.

Some, of course, don't charge a fee at all.

You need to consider what value you feel you are getting from this adviser really, I know guys that charge eye watering fees and have clients that wouldn't deal with any one else.

smcqis

Thank you for a quick response, as first time buyer they offer one off fee of £195 (£295 for anyone else) following completion, we have already had a meeting that isnt charged, seemed decent priced. They dont charge a fee for insurance

dunstonh

In some areas, house prices are cheap and the size of the mortgage is too low for the adviser to really offer free advice. Therefore its not uncommon in those areas to see a small charge and £195 would be classed as a small charge.

smcqis

we would be looking at buying around the 170k so this would seem like a small charge

VIGILANT22

smcqis wrote: »

we would be looking at buying around the 170k so this would seem like a small charge

yes.......very small charge, as he is also carrying the risk..........