Mortgage Broker Fees

Purple123

ACG wrote: »

99% of my cases fall between £500 and £999 on full offer of a Mortgage. Occasionally I do them fee free or charge more than £999 but very rarely. The difference between the £500 and £999 is down to the client, ie size of mortgage (and in turn commission) and their circumstances, do they have defaults or CCJs for example.

£1200 is very steep is everything is straight forward for the residential. The BTL Mortgage is not too bad in my opinion, its in the ball park.

Thanks. I would hope that it is relatively straight forward. Both in full time employment, at lower end of salary-lending ration, 75% LTV, chain free purchase of a chain free house.
The broker is quoting for both mortgages too.

betmunch

I set my fees at £295 (and retain the proc fee) payable on completion.


I'll often do a freebie for a returning customer, or if someone is taking two mortgages at once such as LTB and purchase

amnblog

I checked how fees had moved in the market last month.


They had increased, with more charging and charging more, the bulk of the mortgage broker market now charges between £495 and £995.


Many brokers will charge this per transaction.


IFA's doing mortgages will often charge fees of the level you quote here as it takes them away from other investment work charged at a similar rate.

Like my colleagues on the forum I would expect my fees in a case such as yours to be well under what you have been quoted. Perhaps £797 across both cases.

ACG

amnblog wrote: »

Like my colleagues on the forum I would expect my fees in a case such as yours to be well under what you have been quoted. Perhaps £797 across both cases.

How did you get to £797? It seems a little exact .
When looking at the post, I was thinking if it landed on my desk I would do the 2 for around £800 so we have similar figures in mind.

Dave_Ham

£797 - Love it!

Our typical fee would be £1,495, but we specifically market for non standard cases.

Given the proc fee on the residential, even I think the fee is a tad high although how have you located this broker?

Aswell as broker fees, service standards and experience differs hugely in the industry and therefore these questions are just as relevant.

• How quickly does the broker come back to you and answer questions?
• How thorough are they upfront and therefore how quick is your mortgage offer likely to be issued?
• Can you contact them in the evening or on a weekend?
• If your specific broker is unwell or on holiday, do they have the infrastructure to continue with your case and ask any further questions
• How much would it cost you if you lost the property you were buying, due to incorrect lender selection/management and is this less/more than getting an experienced broker.

I think there is a balance, although cheap is not always best.

Best of luck in any case..

journeymanpro

No fee for me. mortgage for 140000 through virgin.

TooManyQ's

Hello all. I am also an IFA and over the years have found myself doing more and more mortgages. I probably write about 40 - 50% mortgages/mortgage related against pensions/investment work nowadays. However (and you may laugh at me), I could count on one hand the amount of times in the last say 10 years I have charged for arranging a mortgage. This isn't a sales pitch (I'm busy enough) but given the levels of properties that could fall through (i.e. never get paid a thing) I have for ages meant to start charging fees but have never done so. So, can I ask a few questions?!:

- At which point of the process do you all charge? (On application? Completion?)

- If on completion, do you invoice the client or arrange via the solicitor?

- Do you all charge for remortgages? I can see the need for charging on purchases, but remortgages are easy really. Do you charge for these too? Or have a lower fee?

- How do you view regular clients? I don't really want to start charging people who I do other work for, or who have always had it for free and give me repeat business. But by the same token I realise I am selling myself very cheaply. I wonder if any of you had any similar experience and how your clients took it.

If any of you could give me some advice I'd be grateful!

dunstonh

- At which point of the process do you all charge? (On application? Completion?)

on application

- Do you all charge for remortgages? I can see the need for charging on purchases, but remortgages are easy really. Do you charge for these too? Or have a lower fee?

Not all. Depends on the client and the business relationship that exists. However, if charged, it is a flat £195 per case.

- How do you view regular clients? I don't really want to start charging people who I do other work for, or who have always had it for free and give me repeat business. But by the same token I realise I am selling myself very cheaply. I wonder if any of you had any similar experience and how your clients took it.

I have recently got two of my mortgage advisers charging when they never used to. They are coming up to about a year now. They can count the number that said no on one hand. They do about 5 mortgages a week. The others have been charging for years without any issue.

I'm like most IFAs and dont do mortgages but leave that to the mortgage advisers. There are cases we dont charge because of ongoing servicing agreements but most of the people they deal with have little in the way of ongoing servicing and are mostly transactional / small value stuff. You use your discretion at times depending on the relationship. Where we are the family IFA dealing with generations of family we would take a different view to a walk in with no prior relationship.

MortgageMamma

Purple123 wrote: »

Hi,






Can I do a survey of how much average independent mortgage broker fees are? I've been quoted £1600 for a residential mortgage of £400k, plus another £508 for a BTL remortgage of approx. £120k, both with the same broker.
Thanks

That to me is extortionate, I would never charge 1.6k to do a resi mortgage, even an adverse one!

TooManyQ's

Thank you DunstonH. What you have said about people saying no (on one hand) is everything I have heard from many others who work in the same network/national as me. For some reason I made it a big selling point that I wasn't charging when many brokers to me were and I have built up a decent business with it. However after about 15 years of arranging them and thinking I know a lot, I really do feel a huge disappointment in myself that I am underselling myself, especially a property falls through. I think I need to overcome my mindset ASAP!

I think I need to consider a flat fee on application, with a potential reduction based on other business that may come my way at the same time. Thanks again.