Need a new broker

typeractive

Hi all,

My broker which I had a great relationship with has now decided on a career change.

I've contacted a broker and asked how they charge etc. They quoted £295 plus any commission received from the lender. I just wondered if this sounded a bit steep / going rate / should go for one that doesn't charge fees etc.

Thoughts welcomed.
:beer:

LRmortgage

It’s slap bang in the middle in what I would say is the going rate.

Anywhere between £0 and £600 ish is about right.

ACG

It is cheaper than our typical fee, but in saying that we tend to do a lot of adverse so our fees will be a little higher than a "vanilla" broker.

But you should not base your decision on fees - although I appreciate they will be a factor. Ours is more expensive as we limit the amount of work we take on. If our customers want to speak to us or there is a problem, we are able to jump on it straight away - is your broker around when you call/email or do you have to wait for them to come back to you?

Are they whole of market? Some brokers only have access to maybe 15 lenders (we have over 80 for instance).

Do they insist on you taking out insurance through them or using their solicitors? If you are committed to taking out insurance through them, are the premiums normal or loaded? These can be all extra places that make the fee seem low, but end up costing you more in the long run.

The fee forms a part of the overall story.

Mortgage_Adviser

There are free brokers like London & Country, just be mindful that you get what you pay for.

Potbellypig

What about mortgage brokers that specifically deal with people who are contractors? I've been quoted £995. Was that way too high?

[Deleted User]

Potbellypig wrote: »

What about mortgage brokers that specifically deal with people who are contractors? I've been quoted £995. Was that way too high?

Only you can judge the value of the service they are offering.

The thing with contractors is that depending on where you are in the country, you might see them all the time or you might not even know where to start. Personally, I see a lot of contractors and lenders have a very clear outline of how they treat contractors so its not an unusual or awkward type of case to me.
The ones where the lenders dont confirm one way or another how they treat things is where specialist brokers come in useful. For instance, with adverse a lot of lenders dont have very clear guidelines and will base it on the strength of a case. The lenders that dont credit score or instist that you go straight to application to get a decision. Unless you do lots of them regularly you wont know how lenders asses the case.

My own published fee structure allows me a good degree of flexibility to charge more for for complex cases. If the only awkward thing you had was that you were a contractor I personally wouldnt see that as something i would call complex

kingstreet

Deleted_User wrote: »

If the only awkward thing you had was that you were a contractor I personally wouldnt see that as something i would call complex

Me neither.

We 'specialise' in newbuild but we get adverse cases, contractor cases, company BTL purchases, let to buys - all kinds of issues linked to a newbuild purchase. We deal with them all equally well (or badly!).

Our builder-introduced clients pay no fees; those who come direct pay £250.

typeractive

ACG wrote: »

Are they whole of market? Some brokers only have access to maybe 15 lenders (we have over 80 for instance).

They are able to offer a full whole of Mortgage market options and are fully qualified.

I know they're the questions to ask

I was just hoping to not pay £295 up front (ideally). They come recommended from my old advisor who was really good. I know recommendations help too.

ACG

Ah, upfront can be a problem.

Ask if they can delay it until offer issued? We only charge on offer, like you I would be a little reluctant to pay upfront as ultimately if the application is declined you are out of pocket.

typeractive

ACG wrote: »

Ah, upfront can be a problem.

Ask if they can delay it until offer issued? We only charge on offer, like you I would be a little reluctant to pay upfront as ultimately if the application is declined you are out of pocket.

Apologies ACG, I didn't make that clear. They charge when an offer is issued. Initial appointment work etc, no fee / free (well wrapped into the cost of the fee and commission obviously - nobody works for free).

I've always gone for fixed mortgages. My circumstances may change in the near future if I sell my property and buy with my other half so a degree of flexibility would be handy on my next move.

My last fixed mortgage was at 1.23% over 9 years 7 months.
Now that's ended it's gone to 4.24% (until further notice) but the monthly payment has only gone up £40. 7 years 7 months remaining.

I was going to change the number of years to 7 which works out the same as what I'm paying now - basically knocking 7 months off.

I'm wondering if I should just stick with the new monthly payment rather than remortgage as it might be easier when I come to sell and move?

Any advice? Should I 'just' carry on, or is that complete madness and I should definitely arrange a new mortgage?

ACG

There are some deals out there with no early repayment charges. So you may be able to get rates of 1-2% but with no fees? I suppose you have to weigh up whether or not it is worth paying a broker fee to save £30 a month, it would take you 10 months to be better off.