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?
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.
hadenough! said:
Quite, have you checked what your repayments will be when interest rates go up?
When they go up?If they go up.
Yes we have a margin of error. Our childcare cost of 900 a month halves in Sept, thanks to Cameron. That is money we are burning at the moment but it's only until kids reach 3 years old. Our eldest is 3 in June.
Interest rates can rise, we can take the hit. Less so at the moment. Fast forward 2 years and our smallest child is also free at nursery. So it's all very temporary cost. We're going to be around 1k a month better off in 2017 - forever. Any interest rate rise by then would have to be so significant that it sinks the country, which is impossible.
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