Mortgage advisor/brokers fee's help

cobbsy1

Hi hope someone can help!! Just had a mortgage advisor round from " mortgage advice services" to assist with our remortgaged , to cut a long story short towards the end of the meeting when asked she tells us of their fees of between £1695 to £1995 for their services...

In the past I have not paid for mortgage advice from financial advisors as they take their commission from the lender? Is this how it works nowadays or am I being taken for a ride???

Any advice appreciated...Matt

P.s mortgage is for 125k if that makes any difference

dwsjarcmcd

Simple. Your being taken for a ride. Many brokers charge fees which is fine, but not at that level. They will also earn a fee from the lender.

Plenty free, or much cheaper options

dunstonh

to cut a long story short towards the end of the meeting when asked she tells us of their fees of between £1695 to £1995 for their services...

Thats 3 to 4 times the norm

In the past I have not paid for mortgage advice from financial advisors as they take their commission from the lender? Is this how it works nowadays or am I being taken for a ride???

If you employ someone to work on independent basis then you pay a fee (any commission that would have been paid is rebated or offsets the fee and non commission deals are included).

If you employ someone to work on whole of market basis they will consider only commission deals (unless they dont want to get paid at all).

It is not uncommon for low value areas (where mortgages are small) to charge a fee of a few hundred pounds and take the commission.

There are some very greedy brokers out there as well as very fair ones.