Brokers

garydufley · 24 August 2019 at 11:15AM

Hi all

I'm a FTB gradually understanding more about this world

One thing that I'm trying to understand is why there are brokers that charge a fee, and one that dont (eg charge a fee to the customer)

Is it that the paid ones can get you a better rate/deal, is it that they can offer you a package service to hold your hand through the whole process, or is it that they can help you with getting a mortgage if your circumstances are less than ideal?

another question that I have just though off (sorry) if you remortgage (when your fixed deal ends) with the same lender (ex barclays) do you have to pay the setup fee again (eg £999)

Thank you!

dimbo61 · 24 August 2019 at 11:19AM

To answer your second question some new deals do charge a fee and some dont.
However from what I have seen most deals offered to existing customers do not charge a fee.
What you need to do is work out which deal is best for you.
" Whatsthecost" is a website which helps you work this out or if you are happy post your mortgage balance, term and offers available and people on here will help you.

csgohan4 · 24 August 2019 at 11:25AM

With brokers that don't charge a fee, you get what you pay for, free ones like L+C and Habito are conveyor belt brokers and only do the easy cases.

Any sign of adverse and your at their back of their queue or say they can't get you one

I went with a individual whole of the marker broker from here who charged a reasonable rate and could never be happier with the service. Being self employed, I highly doubt I would have got the rate/mortgage at the time

ACG · 24 August 2019 at 11:51AM

There will be no major differences in deals available whether you go fee free or paid.

I used to be fee free, but with all the work put in, by the time the commission came through, it was not worth it. So I became a fee charging broker. Being a fee free broker, I would have had to do more or less double the amount of work I do now in order to pay the bills.

Indirectly, that gives me a lot more time to spend with each customer and I am around a lot more should problems arise.

kingstreet · 24 August 2019 at 1:54PM

Commission paid to brokers is related to the amount borrowed.

If your average mortgage is £100,000 your average commission is about £320. If it's £300,000 it's £960.

As a consequence many brokers in 'poorer' areas charge fees to supplement the commission.

haras_nosirrah · 24 August 2019 at 2:24PM

We charge a fee which is mid range for brokers. I didn't used to but commissions went down, regulations and the amount of work we have to do went up and claims companies see us as an income where people you helped 10 yrs ago who at the time thought you were amazing get told they can get money from you by claiming they were missold something.

Those that don't charge a fee need to have twice the customers. This means they either need to operate as a conveyor belt so you won't get the hand holding or they reject tougher cases and only take the easy ones.

I have had a number of clients from here. All of them without exception have either tried to go direct or have used a free broker first and given up and we have been able to get them sorted. By charging a fee we can take less clients and be there to hand hold and available to clients who need extra reassurance or take on tricky cases that other brokers won't.

amnblog · 25 August 2019 at 12:14AM

Like all businesses some price differently to others.

If you don’t offer something to back up your price structure you are pretty soon out of business.

If you try to compete on price you have nowhere else to go if someone under cuts you.

A Broker that charges a fee is confident that his or her firm can provide value for money.

As Haras says, we often find borrowers who have been to fee free Brokers have got what they paid for.

garydufley · 25 August 2019 at 9:06PM

Thanks all, great points and thank you for the answers

Brokers

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free