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Mortgage advisor fee on application

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I am a first-time home buyer. I consulted a mortgage advisor who came recommended by a friend. I found him prompt and helpful during my initial one-hour consultation and the few follow-up exchanges. He charges a fee of £500 "on application"  vs "on offer" or "on completion." Is this typical and could i negotiate? I am ok with the fee, but I would prefer on "completion." My situation is pretty straightforward, I'd say: I am fully employed as a university lecturer and I will have a solid deposit (probably over 20%). I have lived in the UK for 4.5 years so my credit history is fine (no debts, everything paid on time), but probably not stellar because, being busy, I forgot to get a credit card or have any type of debt payments. I had a great credit history in the US, but that does not translate. I am a EU citizens and will apply for settled status in a couple of weeks.
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Comments

  • vitaweat
    vitaweat Posts: 331 Forumite
    100 Posts Name Dropper
    Sorry to say that from the sounds of things it's too late.  I assume you've signed a contract with the advisor and the work has been done.
  • MovingForwards
    MovingForwards Posts: 17,149 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    Some brokers do it on application (risky in case you don't get the offer).

    Some do it on receipt of offer (safer, as no guarantee of offer).

    Some do it on completion (rare, you may pull out and they've lost money for all the work done).

    Time to try and negotiate the fee was when first told what it was.
    Mortgage started 2020, aiming to clear 31/12/2029.
  • kingstreet
    kingstreet Posts: 39,254 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    TBH we charge "on application" but in reality that means we submit the application and probably issue an invoice about three or four days later and give seven days to pay. Pretty much all our applications are offered before we get a fee.
    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.
  • tasticz
    tasticz Posts: 774 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    the broker my parents used only charged on completion and issued invoice only after we got the keys / remortgage finalised. if the application / purchase fell through then there was no charge. they also only paid £250 for btl application and £150 for remortgage
  • I charge on application but have been known to change it to on offer if asked.   I wouldn't be submitting an application if I didn't think it was going to offer so it doesn't make too much difference to me.  
    Doing it on completion is something I've only done once for someone who just didn't have any money until her house sale completed and downsized.  I wouldn't encourage it much.  Just doesnt work for me as a business model. 
    I don't charge a 2nd fee if it falls through and needs redoing even years later so it's not as if I'm not offering some sort of protection 

    If the application hasn't gone in yet then no harm in asking to change terms.  They can always so no, you agreed to original terms when you asked them to do all the work and research. 
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    it's personal preference tbh, I prefer ones that we pay on offer
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • ACG
    ACG Posts: 24,533 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    We charge on offer. 

    But there is no right or wrong way, it has to work for both sides. 
    If you are not happy with it, ask if they will delay it until completion or offer? I suspect in the current climate, they would be happy to delay it rather than risk losing you as a customer. 
    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.
  • Cscott139
    Cscott139 Posts: 149 Forumite
    Third Anniversary 100 Posts
    I charge on offer as that's when I feel I have done my job but as stated above there is no right or wrong way.
  • I paid part on application  (25% ) and (75%) on offer 
  • ACG
    ACG Posts: 24,533 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Densol said:
    I paid part on application  (25% ) and (75%) on offer 
    Seems reasonable, but I dont think I could be bothered doing 2 invoices and ticking off 2 payments. 
    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.
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