IFA Mortgage Fees

kimbyanne · 19 July 2014 at 5:37PM

Hi,

We are looking at buying a shared ownership house. We had approached Barclays about getting a mortgage in principal and despite speaking with them multiple times and explaining we wanted a shared ownership mortgage using a 5% deposit (as advised by the housing association) we just had a call to say the LTV can only be 85% so rather than a £3k deposit, we are looking at more like £10k which we cannot afford as that would wipe out nearly all of our savings which we need for legal fees, moving etc.

In the pack we received from the HA it listed some IFA's so I contacted one of them who said he could get me a shared ownership mortgage with a 5% deposit. Great!

However I have no idea what sort of fees these IFA's charge. I know generally it's £250 mortgage fee but I am assuming that won't be the entire charge?

Can someone give me a rough idea on what cost I can expect?!

Pushkin · 19 July 2014 at 5:42PM

I think it's likely a one off fee, we are using an independent mortgage broker who charges £450 one off fee only payable if sale completes. Good luck.

dunstonh · 19 July 2014 at 5:48PM

If the adviser is working on independent fee basis then they usually refund any commission and/or consider non-commission paying deals. If they are working on whole of market basis/nil fee (or small fee) then they will use commission only lenders.