Mortgage Broker Fee As A Percentage & Possible Cashback?

[EViS]

We are remortgaging our property and being self-employed do not have the easiest case to deal with. Nonetheless, an all market broker, who we have successfully used in the past, has quoted his fee at 0.75% of the loan amount. This is coming in at circa £1500 which sounds seriously excessive. Opinions?

In addition, on the 'keyfacts' sheet he has sent over for a particular mortgage deal, the following is written:

"15. Using a mortgage intermediary
[mortgage lender] will pay L&G Mortgage Club a fee of £838.50 if you take out this mortgage."

Am I correct in understanding that the broker is being paid a further £838.50 by the mortgage lender? Or is this a fee that all lenders need to pay to the L&G Mortgage Club and is completely separate from the broker?

[grumbledoak]

That sounds like "Ka-ching!" for both your broker and his club. Getting paid by you and a bung from the mortgage lender too. Doubles all round!

It may still be your best offer, but I doubt it.

[H6CJF]

You need to speak to Sarnie

[Sarnie]

EViS said:

This is coming in at circa £1500 which sounds seriously excessive. Opinions?

Yes, yes it is, in my opinion.

But Brokers are free to set their fees at anything they like and clients are free to choose to pay said fees, or not.

[Sarnie]

EViS said:

Am I correct in understanding that the broker is being paid a further £838.50 by the mortgage lender?

It's commission paid by the lender to the Brokers Network/Mortgage Club, a percentage of which will be paid to the broker...the exact amount will depend on the brokers agreement with L&G Mortgage Club.

[Sarnie]

H6CJF said:

You need to speak to Sarnie

Cheers Chris

[craigjm]

Sarnie said:

H6CJF said:

You need to speak to Sarnie

Cheers Chris

Yeah Sarnie might be a grumpy fook occasionally like when Leeds Building Society move the goalposts but he is a genuinely nice bloke and will get you a good deal

[EViS]

Sarnie said:

Yes, yes it is, in my opinion.

But Brokers are free to set their fees at anything they like and clients are free to choose to pay said fees, or not.

Seeing as most internet searches flag up a broker fee to be around the £300 mark, I'll take your unbiased word for it .

How busy are you tomorrow Sarnie? i.e. Would you have enough time to look into what you can come up with?

Edited by EViS on Wednesday 20th July 22:42

[EViS]

Sarnie said:

It's commission paid by the lender to the Brokers Network/Mortgage Club, a percentage of which will be paid to the broker...the exact amount will depend on the brokers agreement with L&G Mortgage Club.

What sort of commission is likely paid back to the broker? Are we talking a couple percent or more like 50%+?

[Sarnie]

craigjm said:

Yeah Sarnie might be a grumpy fook occasionally like when Leeds Building Society move the goalposts but he is a genuinely nice bloke and will get you a good deal

Damn these lenders and their ever moving goalposts!!

[Sarnie]

EViS said:

Seeing as most internet searches flag up a broker fee to be around the £300 mark, I'll take your unbiased word for it .

How busy are you tomorrow Sarnie? i.e. Would you have enough time to look into what you can come up with?

Edited by EViS on Wednesday 20th July 22:42

No problem at all, feel free to drop me a line or give me a call tomorrow, happy to chat!!

[Sarnie]

EViS said:

What sort of commission is likely paid back to the broker? Are we talking a couple percent or more like 50%+?

It will depend on the T&C's of the agreement of the Broker with L&G but I'd expect the net figure to be around 75% of the gross figure you posted.....

[EViS]

Sarnie said:

No problem at all, feel free to drop me a line or give me a call tomorrow, happy to chat!!

I did actually try and call you a couple times (both on the 033 and 016 numbers) early on today to no avail. From what time will you be around in the morning?

[Sarnie]

EViS said:

I did actually try and call you a couple times (both on the 033 and 016 numbers) early on today to no avail. From what time will you be around in the morning?

Really?? Although I did have my daughter school leavers assembly for an hour or so......

Feel free to try again tomorrow or mail me your number and I'll call you?

[Salgar]

Sarnie usually replies so fast that I've had a friend ask if he is some kind of sophisticated AI

[Countdown]

The broker I used charged me and some friends the same amount regardless of the size of the mortgage (£500) IIRC the banks gave him £200 on top.