Commission Share

bbruce

Having done my own research and decided what remortgage to go for, it seems some brokers may have special arrangements with some lenders so could give me a better deal and cop a wad of commission.
Are there any brokers who are prepared to share their fat fee with the punter?

herbiesjp

If you know who you want to apply to for a mortgage, then why not just go direct to the lender? You don't need the services of the broker.

payless

I would not say the fee rec'd is "fat"
although different lenders do pay different amounts, and is usually a % -
so on smaller cases it certainly is not "fat"

Unless its less than £250 it should be fully disclosed - including amounts paid to third parties like networks/ clubs
( most brokers generally disclose the full amount anyway)

---
Sometimes you can get better terms via a broker-
(a % of lenders do different deals thro' different distribution channels - giving certain brokers/ groups a different deal- although sometimes they offer Direct products )

although if you approach a broker on the basis of " I know what I want" they would either need to
1. Treat as execution only- and as such could not tell you if there was other cheaper products/ terms available - and you get no consumer protection.
OR
2. Follow the normal advice process. ( the final recommendation may differ from your original thoughts, although advisers should be willing to bring you into the decision making process - if a particular feature of your "chosen" product is making you lean towards it )

-
Some brokers ( like most businesses) will consider cases on their own merits , looking at how much work is needed against commission or fee earned- so rebates have been known, or some brokers may offer a fee basis whereby the full commission is returned to client in full ( and if commission is greater than the fee.. you get same result )

All advisers using "independent" in their description must offer option of " fee terms " - with commission rebated , although there is nothing stopping them pitching the fee level higher than the commission.

bbruce

The lender won't give you any commisssion or discount but is prepared to hand out £800 to a broker for a couple of hours work on a £150k mortgage.
I think I'll see what fixed fees the broker would charge.

payless

Thats a lot more than the average commission levels paid by most lenders
for standard products
( some offset , B2L and " sub prime- loaded rate " do pay higher than traditional mortgages)


--
2 hours work... I wish

(plus remember like any business a Broker will also have overheads, so the retained fee will not just be profit/salary )

bbruce

I don't want such a large mortgage but I want it on tap for the future so would early repay half immediately which goes into a linked savings account. Perhaps I'll up it to £200k to attract more commission and try to do a deal. Hope the lender doesn't mind - maybe I should keep these plans secret.

dunstonh

You may think that the fees are high but you should consider that overheads involved in runnning a financial services company. They are very high.

bbruce

Asked about fixed fee & rebate but no joy. He wants to charge a fee on top! Says he only converts 13% of leads - I wonder why?
I've not signed anything so will probably go it alone.

payless

sounds like you are speaking to the wrong broker

Mr_helpful

What deal were you looking at

payless

note thsi thread was over 2 yrs old!