Mortgage Advice Broker Fees.

Hi,

I've been looking for a broker to finance a £110,000 re mortgage. Seen

3 firms been quoted 3 different 2 year fixed rate mortgage products. Broker fees vary from £500 to £1500. Why does the advice vary? Why do their fees?
Reply to
Mr. NPH
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I've been looking for a broker to finance a 110,000 re mortgage. Seen

3 firms been quoted 3 different 2 year fixed rate mortgage products. Broker fees vary from 500 to 1500. Why does the advice vary? Why do their fees? ........................................................................................................... Some are greedier than others. Eric
Reply to
Eric Jones

Don't their fees generally get paid by the *lender* rather than the customer?

Reply to
Adrian Boliston

The FSA now have a distinction between 'fees' (which are paid by the client), and 'commission' (which is what the lender pays the broker). What the broker or lender calls these payments is immaterial, so with apologies for putting my pedantic hat on I have to say that a Lender cant pay the 'fees' because that would be 'commission'.

Right, sorry about that, back to common sense...

Most lenders will pay a commission (often known as a 'procuration fee') varying from a flat rate of £150 (say) to a percentage of the loan typically .3% (point three %) but there are huge variations.

With the increased costs of compliance that have just been introduced a couple of hundred quid isnt enough to cover the work involved and so a fee often needs to be charged in addition to the commission received from the lenders, but the figures quoted above are higher than can be justified in my opinion.

Reply to
john boyle

It can depend on the complexity of the case.

I have seen banks charge 1% to 1.5% for overdraft facilities - which is what

1500 represents on a loan of 110,000.
Reply to
Doug Ramage

In message , Doug Ramage writes

True, but this isnt the case in point.

I was merely talking about domestic mortgage advice charged by intermediaries, not commercial lending charges levied by the lender, which is still (for the moment!) an unregulated activity.

Reply to
john boyle

Try

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and avoid fees altogether. I'm about to use it for the second time for a remortgage.

Reply to
Jeremy

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