Simply Adverse fees

SimonBck

I am currently in discussions with Simply Adverse. Checked there website and saw this.
"We typically charge up to 6% of the loan amount, dependent upon the severity of adverse credit and the lender being used"
That seems really high to me.

Retired_Mortgage_Adviser

That is quite high for broker fees but probably the very upper range.

You could always check with a fee-free adverse broker (I only know of one and recent feedback isn't particularly encouraging but there's no harm in checking) first for your mortgage options and then compare with what SimplyAdverse can offer. Or in parallel.

ACG

I think the key words there are "up to" if they were doing a £15,000 mortgage, 6% would be £900.

If you were applying for a £100,000 mortgage they would not be charging £6,000.

SonOf

"We typically charge up to 6% of the loan amount, dependent upon the severity of adverse credit and the lender being used"

percentage fees need context. 6% on £10,000 is not unreasonable. 6% on £100,000 is pretty disgraceful in my opinion. I did take a look at their website to see if there is tiering in place to qualify the "up to 6%" wording but there is nothing to suggest tiering on their site and their example uses £100,000 borrowing at 6% =£6000. However, it does suggest that the percentage is based on the degree of severity. So, it may be that 6% is an extreme and rarely used figure rather than the norm. Have you personally been quoted 6% as the actual fee?

IMO, no-one should be paying 6%. That seems far too expensive. Yes, you expect to pay more but not that much more.

How much are you looking to borrow?

SimonBck

We are looking for about 315k. I don't mind paying a lit bit extra to get a mortgage because I know my case is not completely straight forward.

ACG

Its only £18k, whats wrong with that? They have to pay for the Christmas party :-P

They wont be charging you 6%. In order to be compliant we (mortgage brokers) have to put what our maximum fees will be, ours states a monetary amount, theirs is a percentage.

I know the owner of Simply and I know their fees on a £300k mortgage will not be 6%. I would be surprised if it is even 1%. I do not know how they work their fees out, but if it is anything like ours it is a combination of the level of the work involved and the commission received.

kingstreet

Our fees range from our IDD is £0 to £1,000.

However many times we tell people we will charge them £0, or £250 and however many illustrations we issue confirming that, whenever we re-issue the IDD with the application and suitability letter we always get a response about thirty seconds later asking "what's this £1,000 fee, you never told us about that?"

As stated earlier we MUST show the MAXIMUM fee we might need to charge; even though in reality we have, to date, never charged more than £495.

amnblog

Another example of the regulations producing information that is confusing and misleading for the borrower.

You should simply ask them to confirm the fee in your particular case which will not be £18K

SimonBck

I am just waiting for a response on fees. They seem really helpful but not 18k helpful I think £1500 is my limit.

MovingForwards

Depends on what your adverse is, I'm paying £999 for my broker, nothing stopping you asking a few other brokers what their fees would be and asking doesn't mean you have to go with them either.

Remember, these brokers are helping you, if you don't like how they speak on the phone, interact by email, deal with queries, find one you gel with.

SimonBck

When does the broker fee normally get settled? Is it a soon as a mortgage is agreed?