Post Office mortgages and Brokers

charliexyz

Are there any Brokers that offer Post Office mortgages?

I find their fixed rate mortgages have good rates (2.99% for 5 year fix at 75% LTV), but have high fees of approx £1500, so I wonder if there are any Brokers that can provide a rebate!

dunstonh

Are there any Brokers that offer Post Office mortgages?

Any adviser being employed on independent basis would be able to include it. Whole of market advisers would not.

so I wonder if there are any Brokers that can provide a rebate!

Rebate of what?

GMS

Don't be blinded by the rate. Ensure any arrangement fee is justifiable. £1500 is a large arrangement fee so it needs to be worthwhile over the chosen period.

Have you explored fee free mortgages even if a higher rate to compare overall cost?

kingstreet

Typically, lenders who pay a commission to intermediaries (Post Office is not one) pay 0.3% of the mortgage. That's £300 on a £100,000 mortgage.

The fee a lender charges for a fixed rate is nothing to do with the way the business is sourced, it's just part of the product's pricing mechanism. Therefore, direct to lender deals can have higher, lower, or the same fees as those available via intermediaries.

If I may be direct in my answer. We don't get paid enough by a lender to cover the cost of most mortgage arrangements. Certainly not enough to actually give money to the borrower. In my area, my average mortgage is around £80,000 and the commission £240.

charliexyz

Thanks, I mean a rebate on the broker's commission. :beer:

kingstreet

We don't get any to rebate.

charliexyz

The amount borrowed will be £300K, deposit £100K, house valued at £400K. 75% LTV. (Fortunately, the deposit is increasable should the valuation be somewhat lower.)

GMS: Given the size of the loan, I find that a lower mortgage rate is of greater benefit than a fee-saving mortgage, by quite some difference, particularly over 5 years.

Kingstreet: Those numbers are shockingly low considering the responsibility and the sums of money involved.

>Certainly not enough to actually give money to the borrower.

That's what I meant by a rebate, to the borrower. But never mind as I now know there is none to be explored for Post Office mortgages.

Cheers all.

kingstreet

On a £300k mortgage, I'd work for a £495 fee from the client and rebate them the c£900 commission from the lender, if there was any.

I guess I'd like a low cost-base, like I have working from home in Stafford, and a case average from the London market.

dunstonh

Thanks, I mean a rebate on the broker's commission.

Its not commission paying. Hence why independents will include it but not whole of market.