IFA fees

spup

My current mortgage deal is coming to an end and I arranged an initial chat with a local IFA for advice on a new deal...

...basically he mentioned, and printed in his 'Key Facts' documentation is a fee statement explaining 'a fee of up to 1.95% of the mortgage loan required when your mortgae advance completes'

Although it explains this fee is then capped at £3k, it seems a lot to pay!

Or am I just out of touch with current fees?

bumbler

we were quoted 1995 this week so may be it is not that unusual

silvercar

There are fee free mortgage advisors around. Balance finding someone you are happy to deal with against the fees they charge.

MortgageMamma

Get your IFA to specify his ACTUAL FEE that he WILL charge (if any) in writing (usually done in something called an initial disclosure document) before you commence any work - there are brokers who would do this for the commissoin only but whether the fee is worth paying depends on your relationship with the IFA

dunstonh

1.95% is very high unless it is being offset by commission rebates on the mortgage and commission free insurances.

Rick62

There are plenty of fees free brokers, and plenty more who charge about £200 to £500. Any more than this, on top of the proc fee, is generally a rip off IMHO.

dwsjarcmcd

I would not touch a broker who was charging that level of fee on top of the proc fee. So if you have a £150k loan, for example, they could charge almost £3500!! Depending on your chosen term it probably would cost you money to take his advice.

Hillfly

How much?

I am just in the proces of remortgaging and my IFA is exellent and does not chargem e a fee at all unless i don't take aproduct that pays him (eg ING Direct or remortgage with same provider).

I have known him for 5+ years and have reccomended him to other MSE'ers.
PM me if you would like contact details. I get no commssion or anything for referrals i just think he's good and am happy to try and put business his way.