Independent Mortgage Advisor v Countrywide

Willem-de-Blois

I have compiled all the necessary documents that a mortgage advisor will require to calculate a first-time mortgage in principle.


I have been looking at independent mortgage advisors which tend to be recommended here owing to their not being restricted to a panel of lenders. However the one that I am looking at in particular charges at least £850 or 1% of the mortgage value. I think it will be likely that I will be paying over £850.


Meanwhile a colleague of mine recommended a consultant who works for Countrywide (his business card has the symbol of Taylors Estate Agents). He was charged a flat fee of £175 so there is the potential of a saving of £1000 of fees.


I am wondering how I can reasonably determine whether or not this potential saving is a false economy.


The presence of an Estate Agent worries me too as I don't want sellers' agents to know what cards I am playing with!


Any advice?

amnblog

Willem-de-Blois wrote: »

I am wondering how I can reasonably determine whether or not this potential saving is a false economy.

Search this forum for good feedback on estate agents mortgage advisers and that will answer your query.

libf

Your other option, if you don't have a challenging case, is to apply direct.

ACG

General rule of thumb is to avoid estate agent based advisors.

Dont look for IFAs, look for mortgage brokers/advisors. I would be surprised if you need to pay £850 if your circumstances are fairly straight forward.

dunstonh

I have been looking at independent mortgage advisors which tend to be recommended here owing to their not being restricted to a panel of lenders. However the one that I am looking at in particular charges at least £850 or 1% of the mortgage value. I think it will be likely that I will be paying over £850.

Although as its an independent and not whole of market, then thee usual pricing on that basis is for you to get the commission rebated or offset against that fee.

Meanwhile a colleague of mine recommended a consultant who works for Countrywide (his business card has the symbol of Taylors Estate Agents). He was charged a flat fee of £175 so there is the potential of a saving of £1000 of fees.

Not independent. Not whole of market and an awful reputation.

An independent mortgage adviser will typically offer the fee option or they will work on whole of market basis where they keep the commission (and maybe charge a smaller fee if its in an area where property prices are low). Independent mortgage advice is often better with larger mortgages as the fee can often be less than the commission being rebated. Whereas with smaller mortgages, working on whole of market basis is usually better.

Willem-de-Blois

Thanks for the replies. I phoned the Which? Independent Mortgage Advisors yesterday. £250 on application and another £250-odd upon acceptance. They don't work to commissions but a salary.

dunstonh

Willem-de-Blois wrote: »

Thanks for the replies. I phoned the Which? Independent Mortgage Advisors yesterday. £250 on application and another £250-odd upon acceptance. They don't work to commissions but a salary.

The average mortgage commission is less than £500. So, they are effectively charging a figure broadly similar or a bit more than the average commission.

Bank staff didnt work on commission either. They were salaried. Didn't stop the issues that had.

amnblog

Which now charging £499 plus commission on all cases.

A good indication of where broker fees are going.

dunstonh

I just looked at the Which website. It does say £499 plus commission as amnblog says.

So, its not that attractive an option compared to most local mortgage advisers.

amnblog

What do we believe most 'local mortgage advisers' are charging?

dunstonh

amnblog wrote: »

What do we believe most 'local mortgage advisers' are charging?

The ones I know charge between £199 and £300 but waive it on larger borrowing (where commission is high enough). That is only several local firms.

I am sure there will be some damned expensive ones also in our area too.