mortgage broker - fee free vs fee paying

euanovsky

For a vanilla purchase with no complication, if both brokers are whole of market is there any value in using a fee paying one? I'm happy in general to pay for service and if the mortgage broker adds value or save my time in the process then they probably deserve the fee. It is just that with so many free mortgage brokers around it's a bit hard to justify using a fee paying one.

ukri

If you know it’s vanilla, you know there are no complications, then just use a free whole of market adviser.

Or you could even use a comparison site and apply directly if that gives you a cheaper deal.

jord411

I have found that my current mortgage broker ( who is free) is amazing and the best one I’ve had. She said she don’t. need to charge a fee as she gets paid by the mortgage company .
The previous mortgage brokers I’ve used have all charged a fee.

I would ask around and see if you can get any recommendations.

A broker who charges a fee doesn’t mean they are better or worst than a free broker . 

lonibra

It looks like you are confident that you don't particularly need an MB. So go for a free one or simply find the cheapest deal and apply with the bank.

I always use an MB and she's worth her weight in gold but she doesn't charge me a fee as a pre-existing customer. 

csgohan4

I use both and had good experiences, I avoid Estate agents ones like the plague though, even if their free

dunstonh

I have found that my current mortgage broker ( who is free) is amazing and the best one I’ve had. She said she don’t. need to charge a fee as she gets paid by the mortgage company .

The fee can often be down to location.   If you are in an area where the average house is £400k or above, then mortgages will be higher and there isn't the need to add a fee unless you are greedy.   If you are in an area where the average house is £150k then you need to add a fee.

ACG

There is not really a definitive answer to your question. 
Speaking personally, I used to be fee free. I was running around like a headless chicken, I was just fighting fires service was probably ok but nothing special. We changed to fee free as I realised if I wanted to run a business I wanted to do it well, if something is worth doing as they say...

So we charge a fee, we take on half as much business now but everyone can get hold of me straight away usually or within the hour worst case scenario. Ultimately we do less work for the same income, but customers get better and quicker service. 

I am not saying fee free brokers are bad. I am saying I could not make it work in the way I wanted it to. 

What you have to ask yourself is do you think it is worth paying to have someone on hand or would you prefer to use someone who is fee free - the answer is obvious but there is a saying... Good, cheap, quick - you can have any 2. If they are cheap (or free) usually something else has to give. 

Even the most straight forward of cases can have problems crop up unexpectedly, admittedly rare but it can happen. 

jord411

dunstonh said:

I have found that my current mortgage broker ( who is free) is amazing and the best one I’ve had. She said she don’t. need to charge a fee as she gets paid by the mortgage company .

The fee can often be down to location.   If you are in an area where the average house is £400k or above, then mortgages will be higher and there isn't the need to add a fee unless you are greedy.   If you are in an area where the average house is £150k then you need to add a fee.

I live in London so that would make sense . 

Also true about greedy as the previous mortgage broker ( who charged ) never had time for anything for any questions . Cancelled appointments all the time and then rushed you when you spoke to her . She worked alone and now since changing brokers , bad advise just to get more money quickly . 

However my current free broker is a directed of her company and when she is away there is always someone else who can help.  Of my current broker did charge a fee I would happy pay it .