How do Estate Agents Mortgage advisers make their money?

Altern8

Hey,

Just wondering how an Estate Agents mortgage adviser would make their money?

I was recommended a mortgage with Abbey


3.29% 2 Year Tracker with Abbey, No arrangement fee, free surey and £250 cash back

On their website is the same deal, so is it worth be going direct or going via the agent even though its the same deal?

how do the agents make their money for the same deal?

dunstonh

Just wondering how an Estate Agents mortgage adviser would make their money?

Generally by putting pressure on consumers to use them when most of the time a local independent would be better.

On their website is the same deal, so is it worth be going direct or going via the agent even though its the same deal?

Do you want the hand holding a mortgage broker can give you?

how do the agents make their money for the same deal?

Independents charge a fee but rebate any commission.
Whole of market earn a commission from the lender.

Altern8

Cheers, reading that it sounds like I wont be any more out of pocket if I went direct but if there's any faults I can chase the adviser instead of a call centre person? and they fill in all the paper work or am I wrong in thinking that?

Altern8

Thats good info thanks, The other deals I have seen require a fee and the survey so I worked it out that if I go for the slightly higher rate over the term it will work out the same.

I'll make sure I dont take their insurance up.

Out of intrest how much commission would they make?

Cheers

chewback

Typically betrween 0.3% and 0.35% of the loan amount.

Altern8

I asked the question today the mortage company pay them directly and is not added to the mortgage price.

I think it was about £375 on a £100,000 mortage