Mortgage broker charges

applebite

Hi everyone

I used a mortgage broker back when I reserved my property and got a mortgage offer for 6 months, which we were both aware would expire before I moved. I contacted them this month to ask if they could extend the offer and they stated they thought they could now get a better deal with another lender so went ahead and done this. I paid my broker fee after the first mortgage offer, do `I have to pay again after this as the offer states a fee again? Is this normal practice?

Many Thanks

ACG

Does it state a new fee or is it just re-iterating the original fee?
We have to disclose our fees and by not putting it on there, it could be problematic down the line if you made a complaint.

It is probably worth just speaking to the broker to double check. It would be a bit naughty of them to charge you a new fee without telling you.

Mortgage_Adviser

What did you agree with the broker at the point he has told you can get a better deal with another lender, which obviously means a new application.
The broker was not wrong to charge you a fee for arranging a brand new mortgage as it was a brand new piece of work as opposed to just sending the old lender a message askign to extent the term.
However it needed to be made clear at that point that the new application will mean new fees.

It could be him not mentionning it or you missing it bein said.
Would the money saved in interest and lender fees with the new mortgage would still make you better of even with new mortgage fees?
Or would've you been better of extending the old morgage and not paying the new fees?

[Deleted User]

At the very least you reference the initial disclosure document that should state a charging structure. Personally I only charge a fee once so if a case needs re-written then there is no extra charge.
Everyone has a different structure but it has to be disclosed in the initial meeting

If they haven't told you any extra fees were due then dont pay them. Id imagine the fee noted on the offer is just referencing the original one that you paid for the full application