Broker's 'Processing Fee'?

Flying_Quill

Hello

A whole of market broker/mortgage advisor is telling me that they have to charge me £100 to access a network which allows them to bypass local lenders. Before I argue with them I wondered if someone could tell me if this is a usual and reasonable deal? I may not even take a mortgage through them, but yet I will pay £100. Sounds unfair?
Thanks
FQ

Noz

If you don't agree with the fee, then go elsewhere would be my advice

dpesky

Hi, I would never pay an upfront fee - its a load of rubbish! Just tell them no thanks and move on to another mortgage broker. I have heard some horror stories where people get charged £100 many times over for different advice from the same adviser.

Owner of a Nationwide Mortgage Brokerage and features writer for UK mortgage magazines

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.

dunstonh

There are different software suppliers but they range from free to around £35pm for mortgages.

I wonder if this mortgage adviser is tied or limited panel and can go off panel at a cost. The use of the term network would suggest that. However, it would then make that broker primarily a tied or limited panel based adviser. Have you verified their whole of market status as tied agents are notorious for implying they are independent when they are not (research last year found that over 70% of people seeing a tied agent thought their adviser was independent).

Flying_Quill

Thanks for the info, everyone. The fee is what they have to pay to access a database which provides access directly to the underwriters. They are passing the fee on to me! Now I have some outside info from here I can go back to them and ask some questions.

Anybody else operate this kind of service?
Thanks
FQ

homer_j_3

I know that some advisers operate on what I would describe as a goodwill payment basis, i.e. you pay the adviser to go and spend some time researching the market for you. This fee will then either be deducted from the final fee or will be refunded out of the commission received once completed.

I have never come across what you have explained though.

The key questions here are as follows:

1) Under what circumstances can you get this fee back - if any?
2) What exactly does this fee pay for - what database, what underwriters - are they using a packager (are you a person with poor credit?)
3) How is this different to going to get a fee free mortgage adviser who will access the whole of market for you?

I would say that keep asking for explanation until you are fully comfortable that you understand the full workings of it. If you cannot get this comfortable in your own mind then that should tell you that you are speaking to the wrong people imo

MBM

Tell them to forget it and go to another broker. There is absolutely no need to pay a mortgage broker in any circumstances.

payless

MBM wrote: »

Tell them to forget it and go to another broker. There is absolutely no need to pay a mortgage broker in any circumstances.

no circumstances .. maybe thats a bit strong....
what if a broker offered say a £XX processing fee, but then rebated 100% of the commisson ( or might that be a bit of competition for ceratin sites)

Leon_W

Even a normal "fees free" broker would have their limits.

There is no way in this world I'd take on say a purchase case, with a £30k mortgage, on a fees free basis, if they want the full face to face, bells and whistles service. It just can't be done.

"Fees Free" is not all its cracked up to be I'm afraid and sometimes you will be better off by paying one.

Rick62

This broker is charging you an upfront fee of £100, end of story. It is not to access anything. If you are happy to pay an upfront fee then fine, otherwise don't.

What would put me off is he is lying about what this fee is. What else will he lie about?