Mortgage Broker Fees

betmunch

kingstreet wrote: »

Agh, white text fail.

You inadvertently started it with "bream" in the post before.

Ant chance of a fish punathon shouldn't be wasted.

So I did!

I'm sure there's a game we can play with this......

dunstonh

silvercar wrote: »

Assuming average commission is ~0.35%, for any loan over 220k it would be cheaper for the client to choose the £750 option.

Does my maths make sense?

My preference is for them to use the flat fee with rebate/offset. However, we are in a very cheap area for houses. 5 bedroom detached cost £250k and terraced houses £100k. So, the typical mortgage commissions come in around £300-£400.

My preference for flat fee is not shared as much by my mortgage advisers. Hence why I give them the choice. RDR is now in year 4 and I was mostly fee based before RDR. So, I am less scared of fees than the mortgage advisers. I rarely lose any business to the level of the fee unless it is business I have intentionally priced high as I dont want to do it.

You have got to be codding

Verix

The company I work for specialise in new build, don't charge anything for the vast majority of clients and we do the help to buy application in with that as well.

We do sometimes charge but only on more difficult cases, wouldn't normally be more than £500 if we did.

Dave_Ham

amnblog wrote: »

A function of a three stage fee priced under the round number.


Does it sound like we have thought about it?


Last 12 months we have been thinking it is perhaps several hundred too light.



In interesting discussion yesterday. Post offer case and Lender has improved product available. Client saves £6,000 over two year on new rate, lender charges £199 fee to switch.

We need to organise the switch, how much should we charge?

Given your assumed experience levels from posts on here, I believe it is light too.

I'm personally not familiar with the Post Office rate switch process, although our fees tend to reflect the administration time both with the lender and for compliance for this sort of process.

Dave_Ham

To add, I cannot believe there are still fee free models (even in new build etc. with large volume) given the additional time constraints.

Either the client experience must be fragmented, or large parts of the process are administered by less experienced colleagues.

kingstreet

We have a SO case to do today, commission £87.

With our broker fee, that's £337.

We're reviewing the fees for such cases. If we cannot make the business profitable, we'll pull out of it and spend our time doing "normal" stuff which is.

Unfortunately, our connection is basically the old council housing department hived off into nice new offices, but with a mindset which believes we should do this stuff for free.

I was once the subject of a complaint to them by a potential client when I explained the earnings from the case were too low for us to be able to do it fee-free. Apparently I should not have said this...

Mortgage_Mark_2

We charge £895 on application, but then we are a specialist broker and our cases generally take twice as long to do from beginning to end that a standard PAYE case.

dunstonh

Dave_Ham wrote: »

To add, I cannot believe there are still fee free models (even in new build etc. with large volume) given the additional time constraints.

Either the client experience must be fragmented, or large parts of the process are administered by less experienced colleagues.

I can imagine that a london based broker (or commuter belt) could easily get away without charging fees considering the size of their mortgages. For the rest, I am with you.

amnblog

Dave_Ham wrote: »

Given your assumed experience levels from posts on here, I believe it is light too.

Thank Dave - I'll tell the client's I'm worth more.

Dave_Ham wrote: »

I'm personally not familiar with the Post Office rate switch process, although our fees tend to reflect the administration time both with the lender and for compliance for this sort of process.

'Post offer' not 'Post Office!'

amnblog

kingstreet wrote: »

We have a SO case to do today, commission £87.

With our broker fee, that's £337.

We're reviewing the fees for such cases. If we cannot make the business profitable, we'll pull out of it and spend our time doing "normal" stuff which is.

Unfortunately, our connection is basically the old council housing department hived off into nice new offices, but with a mindset which believes we should do this stuff for free.

I was once the subject of a complaint to them by a potential client when I explained the earnings from the case were too low for us to be able to do it fee-free. Apparently I should not have said this...

A one stage didn't a lot of HA's insist you were 'fee free' to get on their panel?