When do you pay the broker

super125

upon offer or upon completion.....?

what if it is the former and for some reason the application does not go through...then thats £500 down the drain. I guess once you have the offer then its pretty much a dead cert that it will go through unless something untoward comes to light...perhaps a new undisclosed CCJ etc etc

kingstreet

We invoice our clients just after we submit the mortgage application, but by the time it's gone out and they've got round to paying it, the offer has normally been issued.

TBH we wouldn't submit the application if we didn't think it would get to offer.

ACG

Personally I charge on offer, although I dont really chase it then.

I would usually refund it if the offer is pulled because of a mistake on my side, if something new has happened (ie a new ccj or taken out new credit) which results in it being declined then i would not refund but MAY transfer over to a new application - depends on the circumstances.

super125

Thank you very much. Could i please also ask why pay for a broker when so many don't charge at all?

HappyMJ

super125 wrote: »

Thank you very much. Could i please also ask why pay for a broker when so many don't charge at all?

You get more products offered to you. A broker that does not charge may not offer a product on which they get no commission. What would be in it for them?

ACG

Im not for one minute suggesting fee free brokers are bad, but in life you tend to get what you pay for.

I charge what I class to be a fair fee, but because of that I can afford to limit the number of cases I take on - meaning I can offer a service where 9 times out of 10 im around to deal with queries. It also means i can dedicate more time to doing the research.

A lot of fee free brokers, just want "vanilla" cases which are simple to do. Pile them high and sell them cheap method.

Occasionally I do get people saying theyre not paying me a fee and in fairness there are times I dont blame them. There are other times people come to me after telling me other brokers have told them they have no chance of getting a mortgage - so you could be paying for the extra knowledge.

On top of that, I had someone last week I did a mortgage for. Someone who had a default, their previous broker sent their case to an adverse lender, I did some research and even after charging them a higher fee maanged to save them £900 over 2 years... so by paying me more, they were still better off because the other broker thought using a sledgehammer was the right way to crack a nut.

Sorry if that comes across like im bigging myself up, I dont mean it to come across like that - just trying to explain that there are times that paying a higher fee can save you in the long term.