IFA Fees

barndoor_2

Recently spoke to a IFA about re-arranging our mortgage and combining some other debts, we are just finishing a fixed rate deal and need to get on another one, I asked about their fee’s, and eventually they mentioned a fee of a max of £1295 which seems a bit excessive to me, not having used a IFA before, is this excessive or about right?

JoeK_3

barndoor wrote: »

Recently spoke to a IFA about re-arranging our mortgage and combining some other debts, we are just finishing a fixed rate deal and need to get on another one, I asked about their fee’s, and eventually they mentioned a fee of a max of £1295 which seems a bit excessive to me, not having used a IFA before, is this excessive or about right?

It all depends on what the IFA is doing for you.

How big is the mortgage loan amount?

JoeK

LisaT186

Some charge flat fees, some charge a percentage. Then some charge higher but rebate you the commission received from the lender. The most important thing is that they give you an Initial Disclosure Document showing the fees charged and what they are based on right at the start of the interview.

The fee you've been quoted does seem quite high (ours are 1% of the loan min £250 max £400) but depends whether you will get any of the commission rebated and how complex the case is. Brokers / IFAs can charge more for a complex case.

MortgageMamma

Why not just use someone who doesnt charge fee's and save yourself even more money

I have nothing against the fee charges but if you can get it for free you should do

MM

barndoor_2

Mortgage amount is a max of 100K combining a personal loan and some credit cards. They are looking for a five year fixed rate for us.

JoeK_3

MortgageMamma wrote: »

Why not just use someone who doesnt charge fee's and save yourself even more money

I have nothing against the fee charges but if you can get it for free you should do

MM

Now steady on there MortgageMamma, the IFA may not be receiving ANY procuration fees at all from the lender.

Are doing things for free now? LOL

JoeK

MortgageMamma

Thats over 1% of your mortgage. Will they be taking the commission from the lender also? Or will you get that rebated?

barndoor_2

Will they be taking the commission from the lender also? Or will you get that rebated?

Do not know, first time we have used a IFA

The_Eternal_Optimist_2

There are plenty of brokers who would do this just for commission that fee you are about to pay could pay for a fortnights holiday. instead it will probably contribute to your IFA's holiday. why not use a specialist mortgage broker who is fee's free and whole of market

JoeK_3

barndoor wrote: »

Do not know, first time we have used a IFA

Now I'm not trying to protect the IFA in any way but people are already jumping up and down about charging fees without having all the facts.

You should be aware that there are many lenders out there that do not pay any introducer fees (procuration fees, as they are known in the industry) to advisers. The IFA may have introduced one of these lender to you.

Are there any advisers on this site that want to do this case for nothing?

JoeK

MortgageMamma

JoeK

If you charge a fee thats fine you dont have to get defensive. the ethos of this site is moneysaving and thats what we are trying to do for this fella.

I personally DO recommend lenders who don't pay proc fee's to my clients as part of the service, for example, I told a client yesterday he would be better going on the A&L 4.89% premier direct mortgage which I would not have been paid for. I know he'll come back and do his life and general assurance, and this morning his father phoned me from Saudi to say thankyou and ask me to remortgage his buy to lets in september.

I'm a firm believer that if you give good things out, things that you dont necessarily get paid for in money terms then it all comes back to you eventually. Thats the main reason I help on this site and am planning on taking on several trainee's between June and the end of 2009.

MM