Mortgage advisor cost

[davek_964]

Somebody I know (mid-20s) is beginning to look at buying a house - and apparently have an appointment with a mortgage advisor, at a cost of £600.

That sounds absolutely insane to me - but apparently, "that's what people do" now.

Is that really what it costs to get advice on a mortgage? It's quite a few years since I needed to do this so maybe I'm out of touch?

[alscar]

Two of my 3 children have just completed on houses - the oldest remortgaged and the other was his first.
Both used different Mortgage advisors and no charge for either.
I always thought they got their fees from the Lenders that they introduced clients to.

[davek_964]

alscar said:

Two of my 3 children have just completed on houses - the oldest remortgaged and the other was his first.
Both used different Mortgage advisors and no charge for either.
I always thought they got their fees from the Lenders that they introduced clients to.

Thanks - that's what I thought too.

[46and2]

Yes we just got a new deal with the same provider, the new mortgage agreement states that the lender will pay the broker £250ish. Nothing to pay on our end. No re/arrangement or product fee.

Even if we had wanted to switch to a different provider that they had suggested there would have been no fee to us.

[Countdown]

Different brokers must work differently.

I had a similar query some time ago. A relative had been quoted £1200 by a broker to arrange a mortgage. When i bought my house about 12 years ago I paid £500.

[Sarnie]

davek_964 said:

Somebody I know (mid-20s) is beginning to look at buying a house - and apparently have an appointment with a mortgage advisor, at a cost of £600.

That sounds absolutely insane to me - but apparently, "that's what people do" now.

Is that really what it costs to get advice on a mortgage? It's quite a few years since I needed to do this so maybe I'm out of touch?

£600 for an appointment? Yes, that would be insane.

If it's £600 to use them, especially if it's payable every time, is high but not insane.

We charge less than that and then all future mortgages are fee free, we probably have hundreds of PH'er clients now

[46and2]

Countdown said:

Different brokers must work differently.

I had a similar query some time ago. A relative had been quoted £1200 by a broker to arrange a mortgage. When i bought my house about 12 years ago I paid £500.

It can also be product related too. When we initially arranged the mortgage 2 years ago we did have to pay an arrangement fee with the lender. However even at that time the broker got their fees from the lender.

It is possible that there is a difference between broker types. Those that work independantly and those who work within a wider brokerage company. The one we go to works within a wider company.

[98elise]

My mortgage broker doesn't charge. They get a commission payment from the mortgage provider (about £700 for my last one IIRC).

Message me if you want his contact details.

Edited by 98elise on Friday 16th January 11:06

[Gary29]

I don't know if I'm a far outlier, but I've never used a mortgage broker and sorted both mortgages myself (one paid off, one ongoing) my circumstances have been fairly straightforward, but I've been happy with the rates I've paid borrowing from high street lenders. Am I the odd one out? I'm sure Sarnie et al offer a great service, just never felt the need myself.

[Sarnie]

46and2 said:

It can also be product related too. When we initially arranged the mortgage 2 years ago we did have to pay an arrangement fee with the lender. However even at that time the broker got their fees from the lender.

It is possible that there is a difference between broker types. Those that work independantly and those who work within a wider brokerage company. The one we go to works within a wider company.

There is no relationship between product fees and broker fees.

[Sarnie]

Gary29 said:

I don't know if I'm a far outlier, but I've never used a mortgage broker and sorted both mortgages myself (one paid off, one ongoing) my circumstances have been fairly straightforward, but I've been happy with the rates I've paid borrowing from high street lenders. Am I the odd one out? I'm sure Sarnie et al offer a great service, just never felt the need myself.

You are not the odd one out, I'm sure there are plenty of people in this forum especially, that do that too.

But for every person that does, there will be others that do not understand the difference in how a lender will assess sole trader net profit vs Ltd Company director drawings or how being on a Fixed Term Contract affects their lending options, for example.

Or even simpler, do not know if the decisions they may make are the right things for them.

Not everyone is a powerfully built director, of PH proportions

[Gary29]

Sarnie said:

You are not the odd one out, I'm sure there are plenty of people in this forum especially, that do that too.

But for every person that does, there will be others that do not understand the difference in how a lender will assess sole trader net profit vs Ltd Company director drawings or how being on a Fixed Term Contract affects their lending options, for example.

Or even simpler, do not know if the decisions they may make are the right things for them.

Not everyone is a powerfully built director, of PH proportions

No I get it, as said, my circumstances were very straightforward, I just think some people think there is no other way to get a mortgage than through an advisor.

I wasn't trying to derail the thread or create any negative feeling.

I hope you have a prosperous 2026

[98elise]

Sarnie said:

Gary29 said:

I don't know if I'm a far outlier, but I've never used a mortgage broker and sorted both mortgages myself (one paid off, one ongoing) my circumstances have been fairly straightforward, but I've been happy with the rates I've paid borrowing from high street lenders. Am I the odd one out? I'm sure Sarnie et al offer a great service, just never felt the need myself.

You are not the odd one out, I'm sure there are plenty of people in this forum especially, that do that too.

But for every person that does, there will be others that do not understand the difference in how a lender will assess sole trader net profit vs Ltd Company director drawings or how being on a Fixed Term Contract affects their lending options, for example.

Or even simpler, do not know if the decisions they may make are the right things for them.

Not everyone is a powerfully built director, of PH proportions

Agreed. My finances are complicated and I'm retired. I have BTL, Equities, and a pension. Its far easier for me to use a broker to sort out what companies will lend to me, and how I prove my income.

[alscar]

Back when I first needed a mortgage that was "complicated " the broker was enormously helpful in finding a suitable Lender for me to talk with and he acted I thought at the time more as Introducer than anything else -this was 2004 so a lot may have changed.
The point was I couldn't have found said Lender on my own.
He charged me nothing though.
As with House and Car Insurance I have always used Brokers to do all the hard work and that too costs me nothing as all get their commission from the actual Insurers.

[46and2]

Sarnie said:

46and2 said:

It can also be product related too. When we initially arranged the mortgage 2 years ago we did have to pay an arrangement fee with the lender. However even at that time the broker got their fees from the lender.

It is possible that there is a difference between broker types. Those that work independantly and those who work within a wider brokerage company. The one we go to works within a wider company.

There is no relationship between product fees and broker fees.

Went out of my depth on that one lol.

[andburg]

always used a broker, never paid a fee. Even a quick renewal with the same provider worked out better as had access to better deals than were publicly available