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Broker fees
Moglet
Posts: 166 Forumite
How much do broker fees tend to be and what do you get for that fee?
Searching for a suitable product?
Completing the application form?
Carrying out ID checks?
Affordability checks?
Lender queries?
Surveyor queries?
Something else?
Thanks :beer:
Searching for a suitable product?
Completing the application form?
Carrying out ID checks?
Affordability checks?
Lender queries?
Surveyor queries?
Something else?
Thanks :beer:
0
Comments
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How much do broker fees tend to be and what do you get for that fee?
Are you talking fee based or commission based?Searching for a suitable product?
Completing the application form?
Carrying out ID checks?
Affordability checks?
Lender queries?
Surveyor queries?
Something else?
all those things. Plus liability for advice (you get greater consumer protection)I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
A decent broker will cost you nothing. Make sure whole of market. Those who charge may do good job but y pay if dont need to. As long as your getting good vibe from then0
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A decent broker will cost you nothing. Make sure whole of market. Those who charge may do good job but y pay if dont need to. As long as your getting good vibe from then
Ridiculous statement. A decent broker may or may not cost money it all depends on the individual case.
Nobody can expect a broker to work for free, and if a low mortgage is paying next to nothing in commission then a fee would need to be charged.
Good advice is worth a lot in the long run. Free advice is often subsidised by insurance and associated products.
You get what you pay for in anything you purchase.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
A decent broker will cost you nothing. Make sure whole of market. Those who charge may do good job but y pay if dont need to. As long as your getting good vibe from then
Are you saying that independent brokers are not decent then?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Er... because there might be a better deal the commission-only broker doesn't tell you about because he won't get paid if you go for that?A decent broker will cost you nothing. Make sure whole of market. Those who charge may do good job but y pay if dont need toI am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
What's the difference between fee based and commission based? I thought all brokers earnt commission from the lender - is that not the case?
What would be the feeling on a £95 fee and £573 commission?
What if you're taking exactly the same product that you could get direct from the lender...in fact if you went direct to the lender you'd likely get free legals and valuation.
Is it normal for brokers to charge an additional fee for the valuation, on top of the lender's fee?0 -
What's the difference between fee based and commission based? I thought all brokers earnt commission from the lender - is that not the case?
What would be the feeling on a £95 fee and £573 commission?
If the borrower thought it was reasonable then it is. Simple as that.
Impossible for anybody to comment as they do not know the circumstances.
Is it a squeaky clean straightforward case or an adverse credit difficult to place case which will take hours of work?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
A decent broker will cost you nothing. Make sure whole of market. Those who charge may do good job but y pay if dont need to. As long as your getting good vibe from then
Wrong - they are not charities and, as DunstonH says, they are liable for their advice. They also have to pay regulatory fees and levies to the FSA, FOS and Financial Services Compensation Scheme. They must pay fees to the Information Commissioner's Office, for a consumer credit licence, and all the normal overheads of any other business.
One way or another those costs are included. You may not pay them up front but even if they use a fee from the lender to make their business profitable, in the end that will be passed on to you.
They ARE generally worthwhile but do not think that means they are a free lunch.0 -
If the borrower thought it was reasonable then it is. Simple as that.
Impossible for anybody to comment as they do not know the circumstances.
Is it a squeaky clean straightforward case or an adverse credit difficult to place case which will take hours of work?
Pretty straight forward case I'd say.
I'll come back to the this thread in a few weeks when have been resolved one way or the other.0 -
What's the difference between fee based and commission based? I thought all brokers earnt commission from the lender - is that not the case?
fee based are paid by the client and any commission is rebated. independents can also include non commission paying mortgage deals.What would be the feeling on a £95 fee and £573 commission?
Seems fair enough. As long as say a £668 fee only option doesnt come in with a cheaper option.What if you're taking exactly the same product that you could get direct from the lender...in fact if you went direct to the lender you'd likely get free legals and valuation.
It wouldnt be the same product if you got different options. Plus, you wouldnt get the same level of consumer protection.Is it normal for brokers to charge an additional fee for the valuation, on top of the lender's fee?
No.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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