Mortgage broker fees 2 July at 7:00PM in Mortgages & Endowments 8 replies 326 views

Natsplus

Hello people,
What is a reasonable fee to pay a mortgage broker?
Thanks 

dunstonh

Is that a fee with commission offset/rebate or in addition to commission?
Is it for sub prime, buy to let or clean residential?
Is it in an expensive area or cheap area?

haras_n0sirrah

What are you being charged and what kind of application is it?
We charge everyone the same (under £500)but I know some brokers charge more or less depending on how case size and difficulty

ACG

We charge based on commission and complexity. 
Our lowest is £0, highest is £1250 - average for last year was about £560. But we do a lot of complex adverse cases so we need the flexibility to charge more especially where the mortgage is small and there has been 15 CCJs and 10 Defaults registered 12 months ago. 

Bonniepurple

ACG said:

We charge based on commission and complexity. 
Our lowest is £0, highest is £1250 - average for last year was about £560. But we do a lot of complex adverse cases so we need the flexibility to charge more especially where the mortgage is small and there has been 15 CCJs and 10 Defaults registered 12 months ago. 

Was that really a case?!  There’s hope for me then (just paid off the 2 credit cards, a couple of late payments last year due to a slow payer and only needing a small (£~30k) mortgage)!

jamielutz1987

@Bonniepurple With a 30k mortgage, the lender will pay the broker around 0.3-0.4% of the loan amount as proc fee/commission, which comes to just £100. 

Whether you're borrowing 30k or 300k, the work involved for the broker is not very different.

That being the case, it's very unlikely that a broker would do this for no-fee unless it's one of the happy-to-make-a-loss ones like Habito, Trussle, Mojo, etc.

ACG

jamielutz1987 said:

@Bonniepurple With a 30k mortgage, the lender will pay the broker around 0.3-0.4% of the loan amount as proc fee/commission, which comes to just £100. 

Whether you're borrowing 30k or 300k, the work involved for the broker is not very different.

That being the case, it's very unlikely that a broker would do this for no-fee unless it's one of the happy-to-make-a-loss ones like Habito, Trussle, Mojo, etc.

Arguably more work as some lenders especially in the adverse world have minimum loan amounts. So there are times you would find it easier to place an £80k mortgage than you would a £70k mortgage.

ACG

Bonniepurple said:

ACG said:

We charge based on commission and complexity. 
Our lowest is £0, highest is £1250 - average for last year was about £560. But we do a lot of complex adverse cases so we need the flexibility to charge more especially where the mortgage is small and there has been 15 CCJs and 10 Defaults registered 12 months ago. 

Was that really a case?!  There’s hope for me then (just paid off the 2 credit cards, a couple of late payments last year due to a slow payer and only needing a small (£~30k) mortgage)!

Not quite. I think the most I have seen is 15 defaults... 6 were between 12-18 months old, 5 between 18-30 months old, 4 were 30-42 months old.... 1 more each year, gotta love consistency (just to add, I am not taking the P behind their back, I said the same thing to them). 

But placing that case would be harder than someone who had 25 defaults 12 months ago. 25 defaults over the space of a couple of months shows that something probably happened - loss of job/marriage breakdown/illness. It is easier to explain than 4 defaults every year for the last 3-4 years. 

MovingForwards

ACG said:

jamielutz1987 said:

@Bonniepurple With a 30k mortgage, the lender will pay the broker around 0.3-0.4% of the loan amount as proc fee/commission, which comes to just £100. 

Whether you're borrowing 30k or 300k, the work involved for the broker is not very different.

That being the case, it's very unlikely that a broker would do this for no-fee unless it's one of the happy-to-make-a-loss ones like Habito, Trussle, Mojo, etc.

Arguably more work as some lenders especially in the adverse world have minimum loan amounts. So there are times you would find it easier to place an £80k mortgage than you would a £70k mortgage.

Yeah, that was fun trying to find one above their minimum price and making sure there was the wiggle room in case it was valued under the minimum.

Plus the joys of finding something not ex-council because those properties required a bigger deposit 😬