Mortgage advice/ broker

calv76

Hi we are looking at changing our mortgage as our 5 yr term is now up. I went on money supermarket and it took me through to a financial advisor called money know how. They have been tonight and I asked if there would be any charge for their service, they said there may be a charge depending on what mortgage we had...I was expecting them to say no not for our service but may be charged a fee from the mortgage company?? I have just looked on their website and it states they charge a of up to 2.70% with a minimum of £995!!! so they do charge us for their service I take it??:mad:

ACG

Did they not give you an IDD document? Their fees should be on that.

To be honest £995 for a straightforward is expensive. I charge that for a complicated case. But to go away not knowing what the charge will be is pretty poor. To me that means means they cant justify their fee - you shouldnt be charging a fee if you cant justify it.

But is there any reason why you think a company offering a service shouldnt charge you? Commission from the lender isnt usually enough to cover the work (in my opinion, unless its a big mortgage).

calv76

I thought they were free for the advise as L&C are I believe. They have taken some info off us and coming back next week with a mortgage they find? The below is stated at the bottom of their website. They didn't state that they charge I was under the impression they get commission from the mortgage lender.

A FEE OF UP TO 2.70% OF THE MORTGAGE AMOUNT, SUBJECT TO A MINIMUM OF £995 AND UP TO A MAXIMUM OF £4995 PAYABLE AT COMPLETION.FOR EXAMPLE, ON A MORTGAGE OF £80,000 WE WOULD CHARGE A MAXIMUM FEE OF £2,160, AND ON A MORTGAGE OF £400,000 WE WOULD CHARGE A MAXIMUM FEE OF £4,995.

kingstreet

The Initial Disclosure Document, which should be given at the outset of contact with a consumer explains how the broker is remunerated. I would not conduct business with a client without them receiving ours at lease twice. Once electronically, when we first begin contact and a written version provided at our first face to face meeting.

I then request a copy be signed and given back to me at the application stage, to confirm it has been received.

Chances are, if it has not been provided, it is because someone does not want you to know what it says.

Call them tomorrow and ask them to email you one.

calv76

They did give me a key facts sheet and it had this info on but wasn't explained to us. We only read it when she left. I have now cancelled and will not be progressing any further with them.

kingstreet

As we can charge upto £995, I have to explain ours before we send it. The bulk of our business is done at £249, but as we can't charge that for a more involved and complicated case, we have to tell prospective clients what they could pay, as well as what they will actually pay.