How ind!pendant is our mortgage advisor?

pickles13

Hi, this is my first post so bear with me! We (partner and I) are first time buyers so I will be on here lots now!

My question is....we have been speaking with an independent mortgage advisor on the phone and by email, and I have just sent all of our documents for him to find us a mortgage. It clearly states on the website and in all the documents he has sent us, that we pay him no fee at all, at any stage, and that he gets paid by the lender.

My sister in law has said that because he is paid by the lender, he will know who will pay him more and so he will be more inclined to find us a product with his 'favourite' banks. Does anyone know how true this is, and if we would be better off going to a mortgage broker that charges us, as he would then be truly independent?

Thanks!

amnblog

Rest assured - your SIL has no idea what she is talking about.

Whether a broker charges a fee is no indication as to how independent they are.

Brokers do not favour lenders based on size of fees received - differences are minimal and the regulator would shut a company down for such a practice.

ACG

Most lenders pay in the region of 0.30-0.35% of the loan amount. £300-350 for every £100,000 borrowed.

Some do pay less than that and others more but in reality 90% of lenders are going to pay within that ballpark.

Its not worth risking our license for £50-100 - and thats before our networks and the tax man takes their bit. So in reality its going to be £40-80 on a £100-200k mortgage or less if they are a higher tax rate payer.