Mortgage/Financial Adviser Fees

Sibz

Hi

I have been speaking to a financial adviser regarding options for a mortgage (HTB etc). I am currently selling my house and looking to buy another once that's done. This is the first time I've been through this process so not really that familiar with it.

Is it normal for them to ask for some of the fees up front or before any mortgage offer is arranged? Are there any FAs on here that can advise on what work/if any is likely to have been carried out on my behalf that would justify any payment before a mortgage offer? The guy just seems mega busy and always rushing (while that's not necessarily a bad thing, it makes me wonder if he's got a handle on whats going on).

I used a mortgage broker for my current house and that seemed a lot more straightforward and was only fees on completion.

ACG

We only charge fees on full offer of a Mortgage.
Other brokers charge on completion, some at outset and some at various parts of the process. There is no right or wrong way but it needs to work for everyone.

Prior to an application going in, the broker will do:
A factfind (theres an hour or so),
The research - affordability checks, speaking to underwriters, finding the best deals (that can be anywhere from 5 minutes to 5 days depending on how complex your case is),
Collecting and checking documents (maybe another half hour).

dunstonh

Is it normal for them to ask for some of the fees up front or before any mortgage offer is arranged?

Yes. However, the stage you are asked for funds may vary between advisers. At application is common but it can really be at any stage.

Are there any FAs on here that can advise on what work/if any is likely to have been carried out on my behalf that would justify any payment before a mortgage offer?

I am not an FA but an IFA. Most IFAs dont do mortgages. Although their firm will usually have a mortgage adviser within it or a an arrangement with one.

You should not be using an FA. FA means they have restrictions. Often tieing themselves to one provider or a handful. Plus, the FA/IFA tag relates to investment class business. Not mortgages. The choice should always be an IFA and never an FA for investment class. And for mortgages, you should aim for a mortgage adviser rather than an IFA (IFA meaning individual rather than IFA firm).

amnblog

Has your Solicitor asked for any payment upfront?

Sibz

Thanks guys... It is an IFA I've been speaking to.

My solicitors fess are upon completion.

I suspect he's asking for part of the money earlier as he's worried about me getting advice and then going elsewhere... I'm only just selling my house and almost ready to try and get an OIP now.
They weren't kidding when they said moving house is one of the most stressful things in life.

I have an appointment on Wednesday so I'll just make sure I understand what exactly the plan is going forward. I just want my options laid out for me, want to make sure I have enough expendable income going forward as have child on the way and want to be able to save for future alongside mortgage etc.