New Post Advanced Search

Mortgage broker fees

8 replies 326 views
Hello people,
What is a reasonable fee to pay a mortgage broker?
Thanks 

Replies

  • dunstonhdunstonh Forumite
    102.2K posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭✭✭
    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.
  • haras_n0sirrahharas_n0sirrah Forumite
    405 posts
    100 Posts Name Dropper
    ✭✭
    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
    I am a mortgage advisor
  • ACGACG Forumite
    20.6K posts
    Tenth Anniversary 10,000 Posts Name Dropper I've helped Parliament
    ✭✭✭✭✭
    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 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.
  • BonniepurpleBonniepurple Forumite
    209 posts
    Sixth Anniversary 100 Posts
    ✭✭
    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)!
  • edited 3 July at 9:50AM
    jamielutz1987jamielutz1987 Forumite
    296 posts
    100 Posts Name Dropper
    ✭✭
    edited 3 July at 9:50AM
    @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.
  • ACGACG Forumite
    20.6K posts
    Tenth Anniversary 10,000 Posts Name Dropper I've helped Parliament
    ✭✭✭✭✭
    @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.
    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.
  • ACGACG Forumite
    20.6K posts
    Tenth Anniversary 10,000 Posts Name Dropper I've helped Parliament
    ✭✭✭✭✭
    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. 
    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.
  • MovingForwardsMovingForwards Forumite
    6.4K posts
    1,000 Posts Second Anniversary Name Dropper Photogenic
    ✭✭✭✭
    ACG 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 😬
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support