Reasonable mortgage broker fees (on TOP of commission)?

[Ken Figenus]

>moved this from Homes/DIY<

Just jiggling some mortgages (I say 'just' wobble ) and have tried a whole of market mortgage broker as I know my usual IFA can't respond quickly enough for this one. They are asking for a £90 application fee + 2 x £300 completion fee for a remortgage and a new mortgage. I'm not used to paying fees as the mortgage provider usually covers them via IFA's commission. Haven't had a 'chat' yet (as I'm sure we could do a deal) but just wondered on thoughts here - we all need to make a living after all so need to know how this works!

Cheers

[aka_kerrly]

Are any of those fees refundable on completion? Typically a adviser gets a 0.35% proc fee based on the value of the loan thus on low value loans or the application is far from straight forward then it can be quite reasonable for an adviser to charge an additional fee.

There have been cases where it makes sense to take an upfront payment for the work involved if there is a chance that the mortgage will not go through. It can also be quite frustrating having spent potentially a a fair few hours for no reward or you perform research and someone buggers off and applies direct after....

[Ken Figenus]

aka_kerrly said:

Are any of those fees refundable on completion? Typically a adviser gets a 0.35% proc fee based on the value of the loan thus on low value loans or the application is far from straight forward then it can be quite reasonable for an adviser to charge an additional fee.

There have been cases where it makes sense to take an upfront payment for the work involved if there is a chance that the mortgage will not go through. It can also be quite frustrating having spent potentially a a fair few hours for no reward or you perform research and someone buggers off and applies direct after....

The £300's are fees ON completion so low risk to me. They look to earn £1200 based on that 0.35%.

Totally get the spending hours for no cash to feed the family thing (I do competitive tenders that take days where you just know in your bones that the conclusion is often foregone before you even start...). Still these guys by taking this approach are pointing me back to my IFA who will not charge me £690 and will be delighted with £1200 for a days work.

Cheers

[Sarnie]

Ken Figenus said:

The £300's are fees ON completion so low risk to me. They look to earn £1200 based on that 0.35%.

Totally get the spending hours for no cash to feed the family thing (I do competitive tenders that take days where you just know in your bones that the conclusion is often foregone before you even start...). Still these guys by taking this approach are pointing me back to my IFA who will not charge me £690 and will be delighted with £1200 for a days work.

Cheers

Why two lots of £300? Why not just £600?

I'm a Mortgage Broker and £690 would seem a lot if it's a fairly straight forward remortgage?

EDIT: Ah, it's two mortgages.....is one a purchase?

Edited by Sarnie on Thursday 5th February 20:23

[Ken Figenus]

Sarnie said:

Why two lots of £300? Why not just £600?

I'm a Mortgage Broker and £690 would seem a lot if it's a fairly straight forward remortgage?

EDIT: Ah, it's two mortgages.....is one a purchase?

Edited by Sarnie on Thursday 5th February 20:23

Yes mate - a remortgage and a new one using deposit funds from that remortgage. Cheers.

[Claudia Skies]

The last time I needed a mortgage I just looked at the Moneyfacts website for the cheapest deal and sorted it out directly.

For what it's worth; ended up with First Direct at 1.8% over base rate (i.e. 2.3%) with an initial fee of £1,999 (effectively two months payments). Very happy with that.

http://moneyfacts.co.uk/mortgages/best-mortgage-de...

By the way. I read in the newspaper yesterday that demand for mortgages is low at present so there are some stonking deals out there. First Direct is offering 2.89% fixed for 10 years. Well worth a look IMO.

http://mortgages.firstdirect.com/mortgage-rates?WT...DR_Google_Generic_Mortgages_FixedRates_Exact_LT-Standard_P3205&PPCAdGroup=FixedRates_10Year_Exact&PPCKeyword=10yearfixedratemortgage&WT.srch=1&mtp=search