Cashback on Mortgage being kept by Mortgage Advisor

LRmortgage

I could be wrong, but I’m not sure that I have ever seen a Nat West product with £1,000 cash back. That’s very high for a cash back amount.
Are you sure it wasn’t the commission that the lender was paying the broker?

Declan1992

ACG wrote: »

Section 4 mentions all fees payable.
If there is a fee for the broker in there and they did not charge you but took the cashback, not the best way to do things but you are no worse off.
If there is no broker fee in there and they took the cashback - ask them for the cashback.

Before proceeding, you should be 100% aware of what the brokers fee is. It is one thing I discuss on the initial phone call before doing anything.

Lenders do pay brokers commission and brokers do keep that, but some brokers (us included) charge a fee in addition to the commission. It is pretty rare the commission is enough for the work involved, unless you are applying for a £350k mortgage.

Sounds like I got a steal then.

My broker was pretty spot on throughout the whole process and a pleasure to deal with and we paid him no fee.

When I read the paperwork he had a commission from Halifax of around £473 on a £123,000 purchase with the mortgage being only £104,950.

haras_nosirrah

This sounds to me like the procuration fee not a cashback.

A procuration fee is the commission the lender pays the broker.
Cashback is something that comes to you and it would be detailed on your offer as a cashback.

Can you put the exact wording in your offer that mentioned the 1000 and we can tell you what is going on

kingstreet

The procuration fee paid by the lender to the broker is on the front page of an illustration in section 2 and page 6 of the offer.

A cashback would be visible on page 4 of an illustration in the incentives section and on page 9 or 10 of the offer

Are you mistaking one for the other?

Mortgage_Adviser

Sounds like a oprocuration fee to me. However the amount being exactly £1000 to a penny suggests it may not be...

kingstreet

LRmortgage wrote: »

I could be wrong, but I’m not sure that I have ever seen a Nat West product with £1,000 cash back. That’s very high for a cash back amount.
Are you sure it wasn’t the commission that the lender was paying the broker?

Me neither.

£250 and £500 have been the recent amounts on NatWest products, IIRC.