mortgage broker rates?

myright

What's a good rate for brokers to be charging?

kingstreet

It depends on the case/broker.

Some charge no fees. Others charge based on the work involved in the particular case.

Others charge a flat fee.

myright

I see but on a standard straight mortgage for about 80k what should be too high? Rate wise

ACG

I dont think there is a standard.

There are brokers who charge nothing,
brokers who charge around £200-300,
brokers who charge around £500,
£999
and others who charge between 0.5% and 1% of the mortgage amount.

Senior_Paper_Monitor

A basic 80K mortgage is going to earn a broker £250 - £300.


I know what our office costs to run and the number of mortgages we can process - dividing the first by the second comes to a considerably higher figure than that !


If you are a simple case (provide your documents quickly and completely - and don't spring any surpirses), then our £250 remortgage / £350 purchase standard fee (we charge complex cases a little more) would bring you into a marginally profitable band.









Would we do such a case ? - yes and do so happily (we accept we 'win some / lose some') when asked. Would we consider waiving/reducing the fee - not a chance ! (This is not an advert - just an explanation of what the figures are).

There are still fee free brokers out there - but I truly don't know how they do it.

kingstreet

We charge a flat £250 regardless of loan size or complexity, but only work face to face in our part of the Midlands, or with our builder partners.

amnblog

Without a broker fee there is about £250 revenue From the lender on that case which will hardly cover the time it will consume.

Added to that, each case means more risk to the business and more cost in regulator and insurer fees. I am with SPM - I connect see how any business interested in staying in business could do it without a broker fee.

A broker fee of £300 or under would be a good deal for the applicant.

Loopy28

My broker charges a set fee of £350 and is whole of market. Only a small part is payable on application and the rest if they secure the mortgage for me. If they don't they will apply to other lenders without further charge.

I have seen others advertise as a percentage of the mortgage loan. This seems to be EA ones and they only have a limited panel.

My broker is porting my mortgage, I could have done it for free direct but there is a lot less hassle with the broker, the whole process is easier and quicker so the fee is worth it for me.

Paully232000

Just so you can compare more examples.
We used a whole of the market broker who charged £299 for advice/mortgage.