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?

[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%+?

[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?