Mortgage Broker - fees?

super125

We have found a whole of the market broker who will charge a fee of £500 once we have an offer....is that a good deal?

kingstreet

It's double what we charge, but as we have no indication of what is required in your case, it's difficult to speculate.

Dave_Ham

There are way too many variables to assess, our average fee is higher than this although we see more specialist needs.

You also often get what you pay for, so you could get fee free and take on board the stress that often inexperience brings and the potential to incur different costs and not achieve the property due to speed of delivery.

Obviously the fee will vary depending upon the amount your mortgage will be for as the fee on a £500,000 mortgage will be different to that of one for £50,000

There are also regional variances and the level of advice provided.

Good luck

dunstonh

super125 wrote: »

We have found a whole of the market broker who will charge a fee of £500 once we have an offer....is that a good deal?

Is that with commission rebate or commission offset or in addition to commission?

If its with commission rebate or commission offset then its good. If its in addition to commission then its expensive if its mainstream borrowing you are looking at.

ACG

My average fee is around the same, more in some instances but like Dave, I tend to do more adverse mortgages than run of the mill.

There are brokers who will charge less, but I have seen brokers charge £2.5k before now!

It will all come down to your circumstances. Dont forget, they are charging on offer, so they are putting in the risk that they will do a load of work and not get paid for it.

Mortgage_Mark_2

As above really, we charge a set fee of £695 regardless of case size (in addition to commission), but then we're contractor specialists so the vast majority of our cases need an awful lot more attention and time spent on them than PAYE cases.

As ACG says, the very fact that they aren't charging until offer stage is fairly positive, I would suggest.

super125

Im not really sure that our case if too challenging. we are after a joint mortgage. we are both 42, on electoral register, in same property for years, clear credit reports, well managed finances.

me - 33k gross - full time employed civil servant

partner - 40k gross - self employed. BUT he was employed for a one year period [all other years self employed]. so he has only 1 x consecutive tax self return for about 18k net. He works as a site manager with the same firm and will be there for the foreseeable.

we have 40K deposit and looking at properties around the 225-250k mark.

kingstreet

super125 wrote: »

he has only 1 x consecutive tax self return for about 18k net

There is your broker need.