Advance Mortgage Fee - Advice needed..

vo-vo

Hi,

We have an appointment with a mortgage broker for mortgage application tomorrow, and apparently they want us to pay the fee as well tomorrow. When asked what if the application does not go through, the broker said the fee will be refunded.

Is this the correct way to this? I thought the fee is payable only if the application is successful? Please advise..

The fee will cost £500, and the deal is not really good at all (5.61%) but because our case is slightly complicated (due to resident status) - we might need to opt for their service. I just want to know if the fee and rate is reasonable? We are FTB, so trying our best to keep the cost down..

Thanks.

herbiesjp

Have they given you an Intial Disclosure Document or Key Facts document explaining how they conduct their business and how they get paid for their business?

How much is the mortgage amount they are arranging for you?

There are brokers that do not charge a fee, so that could be £500 in your pocket.

HTH

Rick62

Yes, not sure if this £500 is a brokers fee or product fee, it sounds more like a brokers fee. I.e. this is what they charge you for sourcing and arranging the mortgage in addition to the proc fee that they receive from the lender.

The lenders fees always end 99, eg, £599, £1,999 and almost always can be added to the mortgage balance to avoid having to pay out before completion.

Can you give us more details?

vo-vo

The £500 is actually the standard fixed broker fee which is payable upon application (not completion). There is also product fee which comes to £1999 which can be added to the mortgage. No, they have not given us the key facts document and I assume they will give us during our application appointment. Can I request that earlier? Also do I need to pay the broker fee during application immediately and not upon completion?

Yes, I agree that there are brokers without charge, tried London and Country but apparently they could not get anything for our situation.

The mortgage amount arranged is for about £160k.

Mr_helpful

I really would seek another broker. I realise I am biased but I have been around a long time and know there are a lot of very good fee free brokers out there