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mortgage brokers - confused :(
readytofly
Posts: 93 Forumite
I know there is a sticky up there ^^^^^ but i am confused!!!
We saw a mortgage broker and he got us an AIP. On the face of it, he said he charges a fee of £395 - £95 on application and £300 on completion. I had a look through the key facts and the 'payable' breakdown section reads like this :
Mortgage broker fee '£95 on application and £300 on completion, the total fee is up to 1%(less £395) a proportion of which may be waived subject to the conditions laid out in the fee waiver agreement' What does this mean!? That we could actually be liable for 1% of the mortgage amount (approx £1500) OR that we do only pay the £395?
In the factsheet about his mortgage advice he has set out what he does, charges etc with little ticks next to the appropriate statements. When you get to the mortgage fees bit he hasnt ticked a statement! So it reads
A. No fee. we will be paid by commision
B. A total fee of upto 1% of mortgage amount payable on application and/or on completion of your mortgage. the total fee shall not exceed 1% of the mortgage amount. We will receive comission from the mortgage lender in addition to the fees you pay'
C. A fee of 1.5% of the mortgage amount, payable on completion of your mortgage. any commision paid by the mortgage lender will be used to reduce the fee payable
But he hasnt selected any of them.
SOOOOOOOO CONFUSED, have no idea if we do just pay £395 or if in fact it will be more.
We saw a mortgage broker and he got us an AIP. On the face of it, he said he charges a fee of £395 - £95 on application and £300 on completion. I had a look through the key facts and the 'payable' breakdown section reads like this :
Mortgage broker fee '£95 on application and £300 on completion, the total fee is up to 1%(less £395) a proportion of which may be waived subject to the conditions laid out in the fee waiver agreement' What does this mean!? That we could actually be liable for 1% of the mortgage amount (approx £1500) OR that we do only pay the £395?
In the factsheet about his mortgage advice he has set out what he does, charges etc with little ticks next to the appropriate statements. When you get to the mortgage fees bit he hasnt ticked a statement! So it reads
A. No fee. we will be paid by commision
B. A total fee of upto 1% of mortgage amount payable on application and/or on completion of your mortgage. the total fee shall not exceed 1% of the mortgage amount. We will receive comission from the mortgage lender in addition to the fees you pay'
C. A fee of 1.5% of the mortgage amount, payable on completion of your mortgage. any commision paid by the mortgage lender will be used to reduce the fee payable
But he hasnt selected any of them.
SOOOOOOOO CONFUSED, have no idea if we do just pay £395 or if in fact it will be more.
0
Comments
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Typical this. Also I don't like the sound of a 'fee waiver agreement'.
I'd bet that agreement seeks to have you take out life assurance through them. Only do your life cover through them if they sacrifice commision which means taking less commision on the life policy in order to make the insurance premium as cheap as possible, and of course also make sure they will use a recognised LARGE insurer such as AVIVA, otherwise making a claim one day could be tricky with an unknown provider.
Get him to set out the exact fee and date it up - front so you know where you are.
Make sure he will also recommend DIRECT ONLY deals where he would not get any commision from the lender as these can be cheaper mortgages.
As I always say, brokers are only needed for complex applicants.0 -
As I always say, brokers are only needed for complex applicants.
WHY? if the broker is fee free, they will do all the running around, chasing etc.I am a mortgage adviser.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.0
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