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Broker Fees

3 replies 131 views
daver83daver83 Forumite
2 posts
First Anniversary
MoneySaving Newbie
Hi Guys,
Looking for some guidance. We are looking to consolidate our debts with a secured loan of around £50k. We have had an offer from one broker, however they are looking to add 5k of fees to this.
I understand that there will be fees, however this amount seems excessive - is this fairly standard or should I look at another broker?
Thanks!

Replies

  • zx81zx81 Forumite
    26.9K posts
    Ninth Anniversary 10,000 Posts Photogenic Name Dropper
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    That's not unusual but no harm in looking around.
  • DCFC79DCFC79 Forumite
    38.1K posts
    Part of the Furniture 10,000 Posts Name Dropper
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    daver83 said:
    Hi Guys,
    Looking for some guidance. We are looking to consolidate our debts with a secured loan of around £50k. We have had an offer from one broker, however they are looking to add 5k of fees to this.
    I understand that there will be fees, however this amount seems excessive - is this fairly standard or should I look at another broker?
    Thanks!
    Are you sure consolidation is the answer ?
    How much are your debts ?
  • sourcratessourcrates Forumite, Board Guide
    19.9K posts
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
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    Your a homeowner, so options are limited, but debt consolidation, will end up costing you more money, and the only winners are the broker, and the bank, it certainly won`t teach you anything about managing your money better, those old habits that resulted in you running up 50k of debt, will still be there, and before long you will be back, with another 50k, looking at another loan, or possibly worse.

    You cannot repay debt by further borrowing, it never works, especially when its secured on your home, the risk you are taking is immense.

    Much better to try debt management, you pay an affordable sum every month to your creditors, you ask them to stop interest and charges, so your debt actually reduces, no fee`s, no more borrowing, it will take longer, your credit file will suffer, but you will have learned to live within your means, and paid the debt back.

    Contact one of the free to use debt charities in my signature.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
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