Mortgage for FTB

jumboslice

Hello all,

I am a first time buyer so very new to all of this. 

The mortgage broker seems to be fair. His rates are £490 however he is then claiming commission of £750 on the mortgage. 

Does this seem correct. 

janoid19

They all seem to be different from my experience. 

There are some who don't charge a fee and just get commission from the mortgage company and some charge a fee.

I paid £299 for my mortgage broker and they also claim commission from the mortgage company

movilogo

There is no correct answer for this question. The question is whether you find the charge is adding value to your mortgage process.

There is no need for a mortgage broker. You are free to apply for mortgage yourself directly with a lender.
Mortgage brokers get commission from lenders. That's how they earn money. 
Some mortgage brokers charge a fee because [1] they can [2] for small loans commission is not large enough

ACG

The commission is not something you pay. Its what the lender pays, this does not cost directly or indirectly. 

We charge a fee and receive commission. My reasoning for this is that unless the mortgage is a large one, the fee or commission is not enough to cover our time and expense. If we did not get commission our fees would be high. 

The commission is paid because if we were not doing the work for the lender, they would have to pay a memeber of staff - qualify the enquiry, complete the factfind, complete the DIP, complete the application, do the research, verify the documents, do the compliant and then take the liability for the advice on the insurance. 

Whether or not that works for you is another matter, but thats the reason why they pay us. 

No19v87

We paid much higher than that and our broker also received a higher commission.

However, to us it was still good value as we would not have secured a mortgage without them.

Your circumstances will be individual to you and it also depends on the broker/company being used.

If you’ve got a personal broker who is in regular contact providing advice, support, guidance and pulling everything together, it probably is worth it. If you are using a company that is essentially a call centre with limited contact and no personal touch, maybe not.