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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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  • vitaweatvitaweat Forumite
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    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.
  • MovingForwardsMovingForwards Forumite
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    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.
  • kingstreetkingstreet Forumite
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    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.
  • tasticztasticz Forumite
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    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
  • JMA74JMA74 Forumite
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    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. 
    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.

    please do not contact to request representation
  • csgohan4csgohan4 Forumite
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    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/ PIxie/ Bowelhead99 RIP
  • ACGACG Forumite
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    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.
  • Cscott139Cscott139 Forumite
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    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.
  • DensolDensol Forumite
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    I paid part on application  (25% ) and (75%) on offer 
  • ACGACG Forumite
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    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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