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Commission

Hi, my son has seen a mortgage broker. He's a FTB, nothing unusual. One of the deals is with Barclays for a 2 year fix - is this likely to be the same deal to be had by going direct? Broker says she doesn't charge direct but gets commission from lender. Does this sound right? Nothing wrong with the broker, just wondering. It's been a long time since I took out a mortgage.

Comments

  • ACG
    ACG Posts: 24,854 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Broker gets commission but this does not cost you (or your son) anything.
    Many brokers (us included) charge a fee on top of the commission now a days.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • dunstonh
    dunstonh Posts: 120,895 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Broker says she doesn't charge direct but gets commission from lender. Does this sound right?

    Its been that way for the last 40 years or so.

    Lenders pay the brokers as they are not having to pay their own staff.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • shinytop
    shinytop Posts: 2,201 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    thanks for the replies
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