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Simply Adverse fees

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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.
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Comments

  • Retired_Mortgage_Adviser
    Retired_Mortgage_Adviser Posts: 590 Forumite
    500 Posts Name Dropper
    edited 4 January 2020 at 4:58PM
    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
    ACG Posts: 24,547 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    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.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • SonOf
    SonOf Posts: 2,631 Forumite
    1,000 Posts Fourth Anniversary
    "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
    SimonBck Posts: 138 Forumite
    100 Posts First Anniversary Name Dropper
    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
    ACG Posts: 24,547 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    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.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • kingstreet
    kingstreet Posts: 39,256 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • amnblog
    amnblog Posts: 12,728 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • SimonBck
    SimonBck Posts: 138 Forumite
    100 Posts First Anniversary Name Dropper
    I am just waiting for a response on fees. They seem really helpful but not 18k helpful :) I think £1500 is my limit.
  • MovingForwards
    MovingForwards Posts: 17,149 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    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.
    Mortgage started 2020, aiming to clear 31/12/2029.
  • SimonBck
    SimonBck Posts: 138 Forumite
    100 Posts First Anniversary Name Dropper
    When does the broker fee normally get settled? Is it a soon as a mortgage is agreed?
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