When do brokers get paid by lenders?

kempstar

I am curious, if a mortgage broker is getting paid a commission by a lender, when do they usually receive this commission? Is it once an offer is issued? Or on exchange of contracts? Or even drawdown of funds?

betmunch

Anywhere between 2 weeks after exchange to about 8 weeks after completion depending on the lender and the mortgage club if used

kempstar

Thanks, that answers my question.

We are part way through applying for a mortgage, offer has notnyet been issued. We are considering pulling out of the purchase, but I feel a bit bad as the broker has worked hard, and we have used him a couple of times before.

amnblog

He is running a business.


If he does not charge in these circumstances, that is to your benefit and his problem.

ACG

I only charge on full offer of a Mortgage, but I have an agreement in place that states if clients pull out then I reserve the right to charge a fee. In reality I have only enforced it once (on a client who lied).

I have a case going through at the minute where I made 2 applications, property was unmortgageable. Client decided to do a self build, I backed out as it was too complicated for me. He has paid me £100 as a good will gesture and apparantly I have a bottle of brandy on the way. I would have not earned a penny on that had he not wanted to pay me, which is fine as it will only happen once in a blue moon and I am happy to take the hit on it. Infact he asked for my bank details twice and I declined, it was only because he has an old invoice from some of the other mortgages I have done for him that he was able to pay.

So, if your broker does not charge as AMN says thats their problem not yours. If you feel guilty a bottle of something always goes down well