Mortgage & IFA fees
Discussion
My son-in-law is looking for a mortgage.
He's a newly qualified doctor.
Looking at a LTV of about 50%.
IFA wants £1K in fees from him (non-refundable if it doesn't happen) and also will be paid commission from the Lender.
Lender he's sourced also wants £1K in fees,
and there will be £425 valuation fee.
I've NO recent experience of the mortgage market but the above strikes me
as being a bit steep.
Of course if the interest rate is 'good' over the long term, these up-front fees won't matter
but are those kinds of fees the norm now?
He's a newly qualified doctor.
Looking at a LTV of about 50%.
IFA wants £1K in fees from him (non-refundable if it doesn't happen) and also will be paid commission from the Lender.
Lender he's sourced also wants £1K in fees,
and there will be £425 valuation fee.
I've NO recent experience of the mortgage market but the above strikes me
as being a bit steep.
Of course if the interest rate is 'good' over the long term, these up-front fees won't matter
but are those kinds of fees the norm now?
Hmm,
I paid £500 which was well over the local prices (more than double in most cases) because I had a complicated application.
Recommended the same guy to a friend and he charged £700 and nil commission from lender.
Mortgage application & valuation fees are a separate thing.
If LTV is 50% and there are no other issues yes, it is very steep. Shop around.
I paid £500 which was well over the local prices (more than double in most cases) because I had a complicated application.
Recommended the same guy to a friend and he charged £700 and nil commission from lender.
Mortgage application & valuation fees are a separate thing.
If LTV is 50% and there are no other issues yes, it is very steep. Shop around.
Elderly said:
My son-in-law is looking for a mortgage.
He's a newly qualified doctor.
Looking at a LTV of about 50%.
IFA wants £1K in fees from him (non-refundable if it doesn't happen) and also will be paid commission from the Lender.
Lender he's sourced also wants £1K in fees,
and there will be £425 valuation fee.
I've NO recent experience of the mortgage market but the above strikes me
as being a bit steep.
Of course if the interest rate is 'good' over the long term, these up-front fees won't matter
but are those kinds of fees the norm now?
£1k upfront and non refundable is steep. I know lots of fellow Mortgage Brokers who charge that sort of fee but it's payable on completion eg once you've actually got your mortgage. Some will charge a smaller fee on application to cover their time spent on the application but not usually in the region of £1k.He's a newly qualified doctor.
Looking at a LTV of about 50%.
IFA wants £1K in fees from him (non-refundable if it doesn't happen) and also will be paid commission from the Lender.
Lender he's sourced also wants £1K in fees,
and there will be £425 valuation fee.
I've NO recent experience of the mortgage market but the above strikes me
as being a bit steep.
Of course if the interest rate is 'good' over the long term, these up-front fees won't matter
but are those kinds of fees the norm now?
The fee's from the lender sound pretty normal to be honest. You could get a product with no fee's but usually these will have a higher interest rate than those with fees. Over a period of time the money paid inclucing fee's usually works out near enough the same, so it probably comes down to your preference.
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