Mortgage brokers and advice

Hutch100uk

So I've had an offer accepted on a house and I had an AIP just through my own bank.
Going forward I'd obviously like to use a broker as I need a 95% mortgage so slightly more awkward and I'd like the best deal.
Obviously the estate agent are keen for me to talk to their advisor although when I asked if he charged, they said "not for the first appointment but there MAY be a small fee at the end".
My question is, what is the best way to find an advisor who doesn't charge you and are they just as good as the ones who charge a fee?

ACG

Fees do not dictate the quality of the advisor (I say that as a fee charging broker). However, having been a fee free broker in the past, I could not afford to turn work away. That meant I was around less and had more on my plate. If things go wrong or need sorting, it took me longer to get round to it.

In short, I was just fighting fires as a fee free broker.

But I think most brokers once experienced do charge. I could be wrong but I would suspect if you chose 5 fee free brokers and 5 charging brokers, the charging brokers would probably have more experience and time to dedicate to your case... Fee free brokers are lining up to shoot me now - but I am just going off my experience as a broker.

amnblog

I took a call today from someone who wanted help with a buy to let mortgage.

His opening question was do we charge fees?

His intention was clearly to find someone he could bother for free.

I have no doubt he will find someone and they deserve each other.

The reality is that buying a property is an expensive business, not something that can be done on the cheap.

Hutch100uk

ACG wrote: »

Fees do not dictate the quality of the advisor (I say that as a fee charging broker). However, having been a fee free broker in the past, I could not afford to turn work away. That meant I was around less and had more on my plate. If things go wrong or need sorting, it took me longer to get round to it.

In short, I was just fighting fires as a fee free broker.

But I think most brokers once experienced do charge. I could be wrong but I would suspect if you chose 5 fee free brokers and 5 charging brokers, the charging brokers would probably have more experience and time to dedicate to your case... Fee free brokers are lining up to shoot me now - but I am just going off my experience as a broker.

Thank you that is helpful.

Hutch100uk

amnblog wrote: »

I took a call today from someone who wanted help with a buy to let mortgage.

His opening question was do we charge fees?

His intention was clearly to find someone he could bother for free.

I have no doubt he will find someone and they deserve each other.

The reality is that buying a property is an expensive business, not something that can be done on the cheap.

Fair point and I know little about brokers etc, hence my question. I had naively assumed those who don't charge, gain their commission from the lender. Is that not the case then? Do those who charge a fee also gain commission from the lender?

haras_nosirrah

I have just lost a client to a non fee charging broker

The total commission I would have got for the case would have been £150.

With the amount of work involved it just wouldnt be worth it for that amount of commission.

Hutch100uk

haras_nosirrah wrote: »

I have just lost a client to a non fee charging broker

The total commission I would have got for the case would have been £150.

With the amount of work involved it just wouldnt be worth it for that amount of commission.

Ah ok so the commission from the lender is tiny then!

Jmaho

No the proc fee brokers receive can be thousands. Looks like this broker just gets a slice of the pie. No way a proc fee from a lender would only be £150

haras_nosirrah

Depends on the size of the mortgage. When you are looking at a circa 40k mortgage (shared ownership) then it can certainly be tiny

Jmaho

He wasn't bothering you for nothing. If his mortgage completes you get a large proc fee. Stop trying to make people believe you have to pay broker fees. I work for a large high Street bank who receive hundreds of mortgage applications a day from brokers across the UK. Can say for a fact that the majority don't charge a fee to the customer and if they do its usually 300 pounds ish although there are the few greedy ones

haras_nosirrah

Average proc fee of thousands (plural)? I am in the south and I would say average here is between 500 and 800 as the full proc fee. The brokers don't get that though