Broker and mortgage fees cost ????????????

wilkenson

A broker is charging me like £6000 on total for his fees + mortgage fees an extra of £1500 bank charges added to the mortgage.
Need to pay him in total around £6000 except £1500 bank charges added to my mortgage. It is all for a mortgage of (( 260000 )) 125000 deposit for a property which cost 385000.
How do I know the average fees charges of a mortgage of this kind ??? how much will be stamp duty amount roughly??
LOOKING FORWARD TO YOUR REPLIES....

GolfFoxtrot

1. As the property you're buying is over £250,000 stamp duty will be 3% of the purchase price. In this case it will be £10,500.
2. You need to consider solicitors fees also - I'm paying around £1000 for their services to purchase a property.
3. Your mortgage fees do seem incredibly high to me BUT you should have been aware of the fee upfront and found another broker if you weren't happy. Did you ask for a breakdown of the brokers fee?

ACG

Give us a list of fees and how much each one is and who it is going to.

£6k if it is all going to a broker is ridiculous! It sounds like they are charging you 0.5% which isnt uncommon but to have it uncapped is daylight robbery (if that is the case).

wilkenson

GolfFoxtrot wrote: »

1. As the property you're buying is over £250,000 stamp duty will be 3% of the purchase price. In this case it will be £10,500.
2. You need to consider solicitors fees also - I'm paying around £1000 for their services to purchase a property.
3. Your mortgage fees do seem incredibly high to me BUT you should have been aware of the fee upfront and found another broker if you weren't happy. Did you ask for a breakdown of the brokers fee?

Thank you very much for your reply
The broker was recommended by a friend as I already said I didn't know anything about mortgage fees unfortunately.

Here is the breakdown of the broker fees in total.
valauation fees £1200
Application - 500
Solicitors search - 300
Solicitors - 1400
Mortgage fees - 2500
Land registery - 270
Initial interest rate - 3.89%
home insurance - 400
legal fees 700

---

All the above + 1500 Bank fee charges which is added to my mortgage.

ACG

Its not all going to the broker then.

Mortgage Fees - can you expand on that?
Application fee - Who is that going to? With it not being tied into mortgage fees im assuming this is your brokers fee? If so, then that is not unreasonable.

One thing that does stand out:
Solicitors search,
Solicitors,
Land Registry,
Legal fees,
Equate to £2700 - this is far more than the £1k or so i would expect all of those combined to come out at.

I think you need to sit down with your broker and go through those in more detail.

wilkenson

ACG wrote: »

Give us a list of fees and how much each one is and who it is going to.

£6k if it is all going to a broker is ridiculous! It sounds like they are charging you 0.5% which isnt uncommon but to have it uncapped is daylight robbery (if that is the case).

Thank you very much for your reply. I have posted the mortgage broker breakdown fees. Hope to have your comment on it.
regards

wilkenson

ACG wrote: »

Its not all going to the broker then.

Mortgage Fees - can you expand on that?
Mortgage Fees £2500 without any explanation on his fees list.
How can I discus it with him ???

ACG

You have an advisor there helping you with everything.
If they recommended their solicitor they will be able to help.
If they didnt then they will still be able to help determine why you appear to be spending so much with in legal costs.

To give you an example, the lady i tend to use charges around £980 for the work she does, the costs incurred for work done for the lender (these will be on your KFI), the searches and land registry costs.

wilkenson

I would like to know which part of the broker fees charges are not appropriate and why to discus it with him.

ACG

Some of those listed i cant tell who they go to. Not all of those fees will be going to the broker.

The biggest thing im seeing is that you seem to be paying nearly £3k to solicitors. Its the 4 i listed above, i think some of those overlap - but those are solicitors fees not broker fees.

wilkenson

I have been already charged £1500 by the bank for bank charges.
I am really confused about the £2500 the broker charge me for Mortgage charges. what kind of mortgage charges it can be ???