Mortgage Brokers

dunstonh

hutman wrote: »

On average how much would you expect to pay a broker for a lending ~250k in London location. I've been quoted £1000

Thanks

Is that £1000 with commission rebated or offset?

If its £1000 plus commission then that seems high. Mortgages in London are bigger and therefore the commission is bigger. So, you expect the fee to be lower or for the fee to be an offset.

ACG

Personally I think £1000 on a straight forward case is high.

I have a case going through at the minute where the mortgage is £290,000 and my fee is £500. But I suspect there would be brokers who charge 1% (£2,500) and other brokers who would charge £0 so when you look at it that way, its more or less in the middle.

evansc1

You need to be realistic here. 2 months is no time at all. We are in the process of buying a property with no chain and we are first time buyers. Now very close to 2 months since we had an offer accepted with completion due 19th Aug. You never know what delays you could face. And all that is after you find a place. You don't want to go for the first half decent property that you find. You want the one that you are going to love being in for probably at least 5 years.

If you have the 5% and money to cover all the legal fees then good good. Don't forget removal costs if you're furnished and also cleaning costs fro leaving your current place. As well as home insurance and costs to change car insurance (if applicable).

Look at help to buy schemes as they may get you better rates if only putting in 5%.

In terms of mortgage advisors/brokers - give London and Country a call. They are a well known company that are free of charge.

SavingSteve

I was not aware that a rebated approach was available? In theory on a large mortgage could you end up getting paid for using a Broker? (I.e. you pay a £1,000 broker fee, they get a £2,500 commission which is contractually rebated, you make £1,500?)

kingstreet

SavingSteve wrote: »

I was not aware that a rebated approach was available? In theory on a large mortgage could you end up getting paid for using a Broker? (I.e. you pay a £1,000 broker fee, they get a £2,500 commission which is contractually rebated, you make £1,500?)

Yes. Using that model the outcome is as you suggest.

dunstonh

I was not aware that a rebated approach was available? In theory on a large mortgage could you end up getting paid for using a Broker? (I.e. you pay a £1,000 broker fee, they get a £2,500 commission which is contractually rebated, you make £1,500?)

Yes. My mortgage brokers have been in that position several times. Although despite that, most people still pick the commission option.

SavingSteve

Anyone know if any of the panel of brokers HSBC deal with would operate on a rebate basis?

cahillg81

SavingSteve wrote: »

Anyone know if any of the panel of brokers HSBC deal with would operate on a rebate basis?

I don't. But depending on the size of the proc fee I might consider waiving my charge.

cahillg81

evansc1 wrote: »

In terms of mortgage advisors/brokers - give London and Country a call. They are a well known company that are free of charge.

Really surprised this got through unchallenged.

csgohan4

cahillg81 wrote: »

Really surprised this got through unchallenged.

Well known, perhaps, good company depends.


Like everything in life generally, you get what you pay for