High Completion Fee

buletproofchimp

Hello Everyone
I am in the middle of getting a Commercial unregulated mortgage through a mortgage broker.
I am worried at the very High Completion/Arrangement fee.
Gross Loan is £84000 with a completion fee of £4846 and broker fee of £1950. Is this the standard rate as everything i can find is saying it should be between £600-1500 max.
Does the broker also get some of the completion fee?
Feel like i am being conned.
Thanks you and any advice welcome to me as a first time buyer

ACG

£600-1500 sounds low for commercial mortgages.

The overall fees do sounds high but with commercial mortgages fees are sometimes charged as a percentage of the loan amount. Without knowing a lot more it is difficult to say for sure.

buletproofchimp

Yes but 6.6% sounds abit too high to me as its almost putting me off the mortgage.
Who gets the Fee? The bank? Does the broker get some as commision?
thanks for the reply

ACG

The broker will get commission, but that is usually from the loan rather than the fee.

csgohan4

buletproofchimp wrote: »

Yes but 6.6% sounds abit too high to me as its almost putting me off the mortgage.
Who gets the Fee? The bank? Does the broker get some as commision?
thanks for the reply

this is a specialist area and not just a residential mortgage you need to understand and therefore one needs expertise and training and experience. Your pay for that and access to the lenders.

If you feel that the fee is high, nothing stopping you trying to find a lender by yourself or asking for fees from another broker to compare

buletproofchimp

So for commercial mortgage 4800 isnt out the ordinary? cheers for the replys

ACG

I am not saying it is or is not, I am saying you have not really given us enough information.

If you are paying 1% interest for the next 5 years, it is a bargain. If you are paying 15% interest then it is probably not. It all depends on the LTV, the type of business, you as a customer and so on. It seems at the higher end, but I have seen higher.