Fees free mortgage advisor

steven589

I have what is hopefully a simple enough question:

I am currently looking to buy my first house, and I went to see a mortgage advisor yesterday, and he said that he doesn't charge a fee, and works only on commission.

He said that it won't cost me any more money to get the mortgage through him rather than if I applied directly to a bank myself, as the commission that he makes comes directly from the bank to him once a mortgage application is accepted, so I am unaffected financially.

I am new to the process of house buying, so I just want confirmation from someone in the know if this is correct, and he isn't just being elaborate with the truth to get my custom!

Steve

silvercar

Sounds correct, do check that he is whole of market, not tied to one lender.

Many brokers operate like this, you get the benefit of their knowledge and their liability for finding the right product for you. They get commission from the lender. win, win!

Rick62

Yes, what he says is true. As Steven says you need to check that he is whole of market, and you could ask further how many lenders are on his panel, a proper whole of market broker will have fee arrangements with 60+ lenders.

There are a few lenders who do not use brokers (ie they don't pay brokers fees) such as HSBC, AIG Direct who can sometimes have rates maybe 0.1% cheaper, however your broker will also have access to lenders and rates that are not available to the public, lenders who only use intermediaries or 'exclusive' rates only available through intermediaries.

Overall your broker will help you find the best deal for your circumstances and will help ensure that your application goes through successfully and smoothly.