Mortgage Advisors/Brokers and their "Fee's"
Discussion
I am pretty sure I get how they work, so correct me if I am wrong with the below. Reason for asking is we are currently using a few who are independent, yet based within estate agents, some of which charge a fee, some don't e.t.c.
Two in particualar spring to mind.
Advisor A we have met in person, being doing the job a long time, very honest, very capable and has got us an agreement in principle enabling us to have gone on and had an offer accepted on a house. He is independent, based in an office in an estate agents and seem's to know how the lenders operate managing to achieve a decent amount of borrowing by being careful with how we have portrayed our finances.
Advisor B we have spoken to on the phone, no idea of his background, sounds as good as Advisor A, works in a different agent and is also independent. He charges no fee. He has taken our figures in detail and gone away coming back with very similar info to what Advisor A has done. ( It's complicated but it revolves around us not being able to port our current mortgage with Santander, and that Halifax are our best option with out finances ).
So I get the impression that both can achieve the exact same outcome, both will be getting a referral fee paid to them by the lender, and that if we use Advisor A we will then have to pay an additional £500 fee to him simply because that's what he charges.
I have asked them both direct how the fee scenario works and Advisor B said Advisor A is simply charging because he can, and wishes to make more money. Advisor A has said that all mortgage brokers get paid by the lender on successful issue of a mortgage and anyone who say's otherwise is lying, so I get the feeling both are being honest.
Is there anything to beware of or more to understand about the scenario?
Two in particualar spring to mind.
Advisor A we have met in person, being doing the job a long time, very honest, very capable and has got us an agreement in principle enabling us to have gone on and had an offer accepted on a house. He is independent, based in an office in an estate agents and seem's to know how the lenders operate managing to achieve a decent amount of borrowing by being careful with how we have portrayed our finances.
Advisor B we have spoken to on the phone, no idea of his background, sounds as good as Advisor A, works in a different agent and is also independent. He charges no fee. He has taken our figures in detail and gone away coming back with very similar info to what Advisor A has done. ( It's complicated but it revolves around us not being able to port our current mortgage with Santander, and that Halifax are our best option with out finances ).
So I get the impression that both can achieve the exact same outcome, both will be getting a referral fee paid to them by the lender, and that if we use Advisor A we will then have to pay an additional £500 fee to him simply because that's what he charges.
I have asked them both direct how the fee scenario works and Advisor B said Advisor A is simply charging because he can, and wishes to make more money. Advisor A has said that all mortgage brokers get paid by the lender on successful issue of a mortgage and anyone who say's otherwise is lying, so I get the feeling both are being honest.
Is there anything to beware of or more to understand about the scenario?
Advisor B ONLY gets paid if your mortgage completes.
If you change your mind, the vendor changes their mind, there are issues with the property or the lender unearths something they do not like within your details then there will be no mortgage completion and Advisor B gets paid nothing despite having probably spent a significant amount of time with you and your application.
As long as both are being fair, honest and upfront, go with who you feel knows what they are doing and will get the job done for you. Paying a fee doesn't guarantee you'll get the mortgage and conversely assuming that both will achieve the same end result therefore it's not worth paying Advisor A his fee, isn't correct either. Your goal is the end result, go with who you think will achieve this for you.
Personally, the last advisor I would use would be an Estate Agency advisor....all sorts of conflicts of interest there....
PS: hope this thread isn't about me
If you change your mind, the vendor changes their mind, there are issues with the property or the lender unearths something they do not like within your details then there will be no mortgage completion and Advisor B gets paid nothing despite having probably spent a significant amount of time with you and your application.
As long as both are being fair, honest and upfront, go with who you feel knows what they are doing and will get the job done for you. Paying a fee doesn't guarantee you'll get the mortgage and conversely assuming that both will achieve the same end result therefore it's not worth paying Advisor A his fee, isn't correct either. Your goal is the end result, go with who you think will achieve this for you.
Personally, the last advisor I would use would be an Estate Agency advisor....all sorts of conflicts of interest there....
PS: hope this thread isn't about me
Dizeee said:
Thanks. Advisor a also only gets paid on completion of mortgage.
Also the advisors we are using are based in agents that have nothing to do with our chain
As per my previous post, the end game for you is completion, each advisor has laid out their terms, choose the one that you feel will get you to where you want to go!Also the advisors we are using are based in agents that have nothing to do with our chain
Good luck!
I bought a bolt hole recently, and pondered the options. The vendors estate agent offered me a service (rubbish), so I did my own research. Although not the cheapest in terms of cost, there wasn't much in it so I went with my bank because it was simpler and I was able to do the deal for practically no fee. Cost is vital, but so too is service, effectiveness, quality and value for money.
Sarnie, I'm sure I'll be in touch for the next one!
Sarnie, I'm sure I'll be in touch for the next one!
Having had the pleasure of meeting and speaking to probably 5/6 brokers in the last year, the service level is night and day between a good broker and a bad one.
The worst experience i had was from the in house broker at reeds rains. Shocking. Was basically a 20 odd year old in a shiny suit armed with a piece of software. He lobbed in my info and then proceeded to give me a "computer says no" outlook. He seemed to have little to no knowledge about buy to let, specialist lenders, options for ltd companies, hmo financing etc etc.
However, there are good ones who will be extremely knowledgable and will have contacts who they can go to in specialist situations.
I have found a couple of good brokers, one i met through networking and i've also spoke with sarnie who has been extremely helpful and clearly knows his stuff!
I would be more than happy to pay the fees of a good broker who has done the legwork and spent time advising you on your own circumstances.
The worst experience i had was from the in house broker at reeds rains. Shocking. Was basically a 20 odd year old in a shiny suit armed with a piece of software. He lobbed in my info and then proceeded to give me a "computer says no" outlook. He seemed to have little to no knowledge about buy to let, specialist lenders, options for ltd companies, hmo financing etc etc.
However, there are good ones who will be extremely knowledgable and will have contacts who they can go to in specialist situations.
I have found a couple of good brokers, one i met through networking and i've also spoke with sarnie who has been extremely helpful and clearly knows his stuff!
I would be more than happy to pay the fees of a good broker who has done the legwork and spent time advising you on your own circumstances.
Given the length of time that Sarnie had to deal with my constant questions, indecision on properties, and then dealing with Natwest and all their shoddyness I was more than happy to pay him his fee in exchange for his excellent services.
Only 4 years until my fixed rate ends Liam, but I'm sure you've got that written down in a little book
Only 4 years until my fixed rate ends Liam, but I'm sure you've got that written down in a little book
Willeh85 said:
Given the length of time that Sarnie had to deal with my constant questions, indecision on properties, and then dealing with Natwest and all their shoddyness I was more than happy to pay him his fee in exchange for his excellent services.
Only 4 years until my fixed rate ends Liam, but I'm sure you've got that written down in a little book
It's in there, don't worry Only 4 years until my fixed rate ends Liam, but I'm sure you've got that written down in a little book
Dizeee said:
Sounds good.
I'll drop some figures your way and include my phone number.
Using your PH email
Replied to your mail twice, got two error messages......I'll drop some figures your way and include my phone number.
Using your PH email
"Hi. This is the qmail-send program at apm-internet.net.
I'm afraid I wasn't able to deliver your message to the following addresses.
This is a permanent error; I've given up. Sorry it didn't work out."
On a related matter - and I don't mean to ask an impertinent question here - but I actually winder to myself how mortgage brokers who DON'T charge a fee ever make money. They get a "proc fee" from the lender of about 0.3-0.4% so on a £200,000 mortgage they'll get no more than about £800. When you consider all the ball-ache that goes into some mortgages - many of which end up going nowhere - I don't see how they can do enough to pay the bills. Clearly they are but I'm just missing the business model. Is it in the ancillary sales of protection and the like?
I don't mean to be impertinent but @Sarnie if you would like to comment I'd be curious to know.
In any case, you clearly do make it work and fair play to you.
I don't mean to be impertinent but @Sarnie if you would like to comment I'd be curious to know.
In any case, you clearly do make it work and fair play to you.
Aquarius909 said:
On a related matter - and I don't mean to ask an impertinent question here - but I actually winder to myself how mortgage brokers who DON'T charge a fee ever make money. They get a "proc fee" from the lender of about 0.3-0.4% so on a £200,000 mortgage they'll get no more than about £800. When you consider all the ball-ache that goes into some mortgages - many of which end up going nowhere - I don't see how they can do enough to pay the bills. Clearly they are but I'm just missing the business model. Is it in the ancillary sales of protection and the like?
I don't mean to be impertinent but @Sarnie if you would like to comment I'd be curious to know.
Indeed. And the net figure is much closer to 0.3% these days, although I remember the 2% subprime self-cert days!!I don't mean to be impertinent but @Sarnie if you would like to comment I'd be curious to know.
Thanks for your attemps t contact me sarnie but I think we have this sorted now. We are borrowing through 281k through Halifax, our only option, as we have 1k a month in childcare to pay as well a host of other bills and our current lender + others won't tough us for more than around 225k. Ridiculous in my opinion, as we are in our early thirties and moving to an equivalently priced property to that in which we currently live. Still, Halifax will gain where the others will lose out and we are getting a good mortgage at around 1.6% fixed for 2 years, so happy with the result.
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