Broker Fee Question

typod

Hi,

I was wondering if anyone can clear somthing up for me. I have been to an IFA who ensured me that they don't charge a fee and get their money from comission. No problem so far.

When I got my mortgage offer through one of the sections reads "mortgage company name will pay broker name an amount of £1066.27 in cash and benefits if you take out this mortgage. All of this fee will be passed onto you."

Now does that meen that I have to pay the £1066.27 somewere in the costs? Surely that meens they are more than just comission based, or am I being stupid and missing the point?

Thanks

dunstonh

Who is the provider? Some KFIs dont quite read as they sound.

Indeed, if you read what you have typed, it could sound like they are rebating the commission to you or that they are explicitly adding a fee.

Remember, the term IFA doesnt apply to mortgages. IFAs are investment advisers. So, take a look at the mortgage key facts about our services the adviser would have given you and that will be the documentary evidence of their charging structure.

The other thing you should do is check this with the adviser to see what their response is.

typod

Cheers, I will take a look. I also now realise I used IFA out of context, and ment broker!

payless

My guess is they are working on commission only, but have ticked the wrong box when ordering the qoute/KFI, as that statement means you are going to get the £1066 back as an additional incentive ( and if no mention of a fee .. on same document !!! )

typod

Thanks for the advice. I checked with them and they ensured me they are on comission only. I just panicked there for a bit!