Mortgage Broker Fees?

Graham29

Hello,

I'm a long time reader, first time poster!

I have a question regarding the fees you are charged for using a mortgage broker. Two years I was divorced and bought my wife out of our house, this was all done through my solicitors (they have a financial department attached).

I was charged a fee by the mortgage broker for finding my mortgage, it wasn't cheap, a few hundred quid. He said he will be in touch before the fixed rate ends to find me another deal. I was wondering if I would have to pay this money again? I can't see anything in the paperwork. Is this something I will have to pay each time my deal ends and I re-mortgage? Its a few months away, so he will be in touch soon no doubt!

Many thanks.

Gareth19

Yes mortgage brokers will charge a fee on every mortgage they arrange. Best bet is don't use one and go direct to a lender and save yourself a few hundred notes

Graham29

Gareth19 wrote: »

Yes mortgage brokers will charge a fee on every mortgage they arrange. Best bet is don't use one and go direct to a lender and save yourself a few hundred notes

What is the best way to find the best deal though? I know mortgage brokers can compare deals. Sorry, but I am clueless about this!

Gareth19

They are searching for the best deal as you quite rightly say but they are not doing it out of the goodness of their heart. As you know they charge a fee for finding you a deal. I find that with the internet comparison sites available nowadays you can do pretty much the same as they can except for free! That's how I did my remortgage anyway and it went like a dream. Easier than you think.

Gareth19

And from my experiences mortgage brokers are more useful if you have bad credit as they have exclusive access to a lot of sub prime lenders' mortgage products which are not available to individuals but if your credit rating is ok then give it a go yourself and search the best deals on the internet

Graham29

Gareth19 wrote: »

They are searching for the best deal as you quite rightly say but they are not doing it out of the goodness of their heart. As you know they charge a fee for finding you a deal. I find that with the internet comparison sites available nowadays you can do pretty much the same as they can except for free! That's how I did my remortgage anyway and it went like a dream. Easier than you think.

Thanks for the advice. I will start my research soon! Sorry for the questions, but when you re-mortgage, if it is with a different provider (I'm with the Woolwich at the moment) do you have to go through the valuation again (paying the fees again for this) I had to when I took the Woolwich deal, or is a simple straightforward switch?

Gareth19

Graham29 wrote: »

Thanks for the advice. I will start my research soon! Sorry for the questions, but when you re-mortgage, if it is with a different provider (I'm with the Woolwich at the moment) do you have to go through the valuation again (paying the fees again for this) I had to when I took the Woolwich deal, or is a simple straightforward switch?

Yes if you go with a new lender they will want their own valuation done but there are many deals available whereby the lender will pay (better known an free valuation). Also the lender may pay for your legal fees as well. That's what happened to me so it's well worth shopping around.

Gareth19

Also worth mentioning that you will need a solicitor to do the legal stuff (hence the free legal fees I mentioned earlier). Just the lender covering themselves but in answer to your question no it is not a straight forward switch and it takes a few weeks normally if all goes well.

katsu

The advantage of a broker is the chance to discuss and assess all your options and get advice from someone who is clued up about mortgages. This is particularly handy if you want advice on the different mortgage options available, as well as what is the best deal for you. There are also some deals that are broker only.

Personally I really valued the advice of my most recent broker and I only had to pay them if they found me a good deal I wanted to take up.

Just thought I would offer you another perspective. Good luck with whatever you decide to do.

GMS

If an individual is confident and understands mortgages then they can do no wrong by applying directly. If somebody is not confident then a broker can prove to be invaluable. If a broker finds a deal which saves money then they have earned their cash straight away.
I take my car to the local garage for a service as I would not know where to start. My neighbour regularly services his car (same make) himself. He knows what he is doing with the car where as I do not.

Comparison sites can be misleading but are a useful tool.

It is the choice for the consumer pure and simple. Mortgages are tailored to the individual's circumstances so what one person has should not be taken as an indication of what is possible