Mortgage brokers and advice

amnblog

The ‘greedy brokers’ sometimes charge the same for their service as the Lenders charge simply to access the product.

It’s business.

[Deleted User]

Jmaho wrote: »

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

Plenty brokers are free, plenty charge a fee.

As far as commission from the lenders is concerned, most brokers should offer to show you what rates lenders pay. In general its around 0.4% of the loan amount (can be higher, can be lower). Obviously for bigger loans there is more reason to look at waiving a fee but for a £80,000 mortgage in the north, its barely worth the time.

Your contribution is valued but based in misinformation and anger for some reason. The number of cases I have done with a proc fee over £1000 is very very low. If you can find a way for me to make thousands off a proc fee then feel free to tell me :-)

ACG

Jmaho wrote: »

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

The lowest proc fee we have received this year is £145. That is what I (as the business owner) have received. From that I pay the broker who placed the case. So the gross fee we receive can be that low. Ultimately it is a percentage of the mortgage (around 0.35%) so smaller mortgages = smaller commission.

Cscott139

Jmaho wrote: »

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

I am a fee charging broker and in most cases charge £250 when I get you your offer. I would say where I am based (West Yorkshire) my average proc fee is approx. £400 - £600 so far from thousands.


Try ask your friends/family if they have used a broker in the past and had a good experience and start there but you can get great fee free brokers but they may be busier and not have as much time to guide you through the process.

kingstreet

In the last two weeks we've done a £55,000 mortgage with Bank Of Ireland, gross procuration fee £220.00 and a £75,000 mortgage with Barclays, gross procuration fee £262.50.

Both newbuilds, both no broker fee charged. Thousands of pounds a case, yeah right. We'd have to do a mortgage of over £285k with Barclays to get £1,000 let alone thousands.

If anyone would like evidence, PM me your email address and I will forward the dated front sheet of the ESIS showing the gross commission (from which L&G mortgage club and our network also take their cut!).

Crumble2018

We used a fee free broker and he's been absolutely brilliant. Answered every question I had via e-mail within 1/2 hour, and even sent us over our full mortgage offer on a Saturday afternoon from home so we wouldn't have to wait until Monday. I almost feel guilty that we're not paying him!

amnblog

elsimsy wrote: »

I almost feel guilty that we're not paying him!

There is a simple way to assuage your guilt.

haras_nosirrah

amnblog wrote: »

There is a simple way to assuage your guilt.

Referrals to friends and family a positive review on their website and a bottle of something is always welcome

ACG

Jmaho wrote: »

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

I feel this needs calling out...

First thing, I am a fee charging broker and I do not hide that fact, it is brought up on the first conversation I have with customers.

Large proc fees are subjective. However, the average mortgage in the UK is £200,000 give or take (assuming an average purchaseprice of £225k). That means a proc fee of £600-680. So not the thousand(s) you seem to think is common practice, not even close.

They also only tell part of the story. Who gets that money? The firm? The broker? The mortgage club? The network? All 4?

Do you think the proc fee is our income? What about:
Compliance costs?
FCA fees?
Insurance?
IT costs?
Marketing costs?
Stationary, travel, phone/internet, accountancy fees, I am sure I could carry on. After all of those costs in addition to the mortgage club who take their cut we then get to take some of that for our wages and we are greedy?

I bet you are quite happy with your company pension, holiday pay, sick pay, annual pay rises and so on, but we are not allowed to earn a proper wage for what is a stressful job?

For someone who works in a bank presumably in a broker related part of the bank, you should maybe start to understand the market a little better.

If I write £1,000 on a case made up of fee and commission as I rarely get £1,000 commission, I 100% categorically do not walk home with £1,000. Before you start to make uneducated comments, maybe understand the process and also averages because most mortgages (unless you are working for Coutts) will not be paying £1,000 on proc fees because the average is closer to half that.

A little bit of knowledge is worse than no knowledge at all.

haras_nosirrah

Ironically the shared ownership one I lost to the free broker. Broker just called me as she doesn't know how to do them and wants help from me (I am a shared ownership specialist)