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Compliance fee
Comments
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Abbey/ 40% deposit/ the application was fast tracked0
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We are in a low house value area, and my mortgage brokers charge £250 on commission cases. My mortgage advisers refer to it as a an advice fee and position it as the commission is low. Compliance fee does, as I said earlier, sound like their internal name.
Many brokers, use compliance companies or work for someone else and it is they which take a charge. Whilst a percentage charge is one of the most common models, there are some compliance companies that charge a case fee to the adviser.
Whatever the name of it, it is allowed and its up to any broker to decide what their fees are.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Is it a buy to let product? Only Abbey long-term (5 years +) and BTL products attract 0.5% commission. The others are 0.33% and 0.4%.robc281274 wrote: »Abbey/ 40% deposit/ the application was fast trackedI am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
No, not buy to let. It is a 5 yr deal though...0
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robc281274 wrote: »Absolutely accept that he needs to earn a living, I've no problem there. I suppose what I ultimately want to find out is whether the £1425 fee he's being paid - £300 from me, £1125 from the lender - is low, high or about right (for whole market advice, recommendation and arrangement of a £225k loan).
The fee would be in line with what Kingstreet and dunstonh would charge ie £295 and £250, so seems fair from that point. Yes the fee being paid to him by the lender is that bit higher than normal but that's due to the lenders choice to pay more on the long term fixed rate. If it's your choice to go 5 years fixed and that's the best option for your situation, then nothing wrong with that either
He probably wouldn't be earning this money every deal, so a £30,000 remortgage earning him £90 would probably explain the fees being levied.
Some brokers work on the basis of charging no fees but thats more a reflection of their business model.0
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