Fee free Mortgage advisors

paulsm

Is there a list out there (if not how about starting one) for fee free mortgage advisors , I made an appointment with one who never mentioned his fees until he sent me details of possible mortgages with his £450 slapped on , another bumbled about sometimes we charge , sometimes we dont when I rang him up. It seems they are as rare as rocking horse ....

Scott

They're all making money somehow .

AndrewSmith

All mortgage brokers have an obligation to provide you with an Initial Disclosure Document which will clearly state what, if any, fees are charged by the broker and how you pay them etc.

If you are not offered one of these documents, ask for it before giving the broker any personal information. If they won't give you a copy, walk away.

You will find that the majority of brokers work on a commission only basis, where we recieve a commission from the mortgage company once you have completed on the purchase/re-mortgage. This is therefore not paid for by you in any way, but is paid for by the lender as the broker has saved the lender considerable time and cost (not to mention accountability of the advice) for the business.

Andy

paulsm

how do I know the broker that charges a fee is not getting commision as well?
P.S anyone recommend a fee free broker in / around Gt Yarmouth?

MortgageMamma

I'm in Great Yarmouth at the moment but only for my jolly holidays and what a fantastic place it is too. I don't know any Mortgage Advisors in this area btu I think I know of a local IFA who posts on here. As for fee's, much of whether you are charged a fee by a broker depends on the size of your mortgage and complexity of your requirements. I personally only charge a fee on mortgages below £80,000 as the general remuneration for a straightforward mortgage is 0.35% of the loan amount. when you deduct your overheads from that believe me it is not a lot for around 10-15 hours work!

AndrewSmith

Because they have a legal obligation to tell you on the Initial Disclosure Document.

MortgageMamma

If you pay your broker by the hour you will get any commission rebated normally

dunstonh

Ahh, MM, I'm just south of where you are. Come round for a cuppa.

I have a mortgage adviser due to start soon but he will be charging a fee because the commission on mortgages in this area is so low because the average mortgage is small. I think people do not realise how little money is paid on "normal" mortgages.

MortgageMamma

dunstonh wrote:

Ahh, MM, I'm just south of where you are. Come round for a cuppa.

I have a mortgage adviser due to start soon but he will be charging a fee because the commission on mortgages in this area is so low because the average mortgage is small. I think people do not realise how little money is paid on "normal" mortgages.

Lets give them a commission crash course then!

Normal mortgage or remortgage 0.35-0.40% of loan amount
Self Cert - 0.35-0.5 of loan amount
Adverse credit - 0.50- 1.5% of loan amount
Buy to let - 0.45% of loan amount.

these are all averages and vary from lender to lender. The average case takes 10-15 man hours. An adverse or non conforming much longer.

Wish I'd have known earlier where you were DunstonH I'd have paid you a visit. I'm not used to having to spend 24/7 with my kids and they've been hard work to say the least!

I'll be back in the area last week in August for another week's break, I blummin well love it. you are well lucky living here.

To the OP, use DunstonH for your mortgage, he knows what he's talking about

MM

dunstonh

I dont do mortgages MM and dont want to start. There is enough work keeping on top of investments for me to even consider that side of things. Thats why I am taking on a mortgage adviser. However, he isnt through the application process yet so can't see anyone.

MortgageMamma

dunstonh wrote:

I dont do mortgages MM and dont want to start. There is enough work keeping on top of investments for me to even consider that side of things. Thats why I am taking on a mortgage adviser. However, he isnt through the application process yet so can't see anyone.

Well when I relocate here next year give me a shout mate. I'm going to set up a tent on gorleston beach and offer advice from there with my feet dipped in the sea. I've decided I'm going to be different from most mortgage advisors with an unconventional approach! Mortgage advice at a beach hut with a detox anyone? The complementary therapy is not fee's free!