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Mortgage broker fees
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Natsplus
Posts: 47 Forumite

Hello people,
What is a reasonable fee to pay a mortgage broker?
Thanks
What is a reasonable fee to pay a mortgage broker?
Thanks
0
Comments
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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?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1 -
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 difficulty0 -
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.
I am a Mortgage AdviserYou 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.0 -
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.0 -
@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.0 -
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.I am a Mortgage AdviserYou 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.1 -
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.
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.
I am a Mortgage AdviserYou 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.1 -
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.
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 😬
Mortgage started 2020, aiming to clear 31/12/2029.0
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