Mortgage Broker Fees

[MickeyP]

Just been quoted a £695 fee for remortgaging by one of the main contractor mortgage brokers that frequent this board. This seems a lot considering I have to pull it out of my own pocket and can't add to mortgage.

Do they all charge a fee these days? I recall some years ago dealing with a broker that didn't charge a fee (they made their money from setting up the mortgage with the bank on a commission basis).

£695 I ask you!

[reformation]

Just been quoted a £695 fee for remortgaging by one of the main contractor mortgage brokers that frequent this board. This seems a lot considering I have to pull it out of my own pocket and can't add to mortgage.

Do they all charge a fee these days? I recall some years ago dealing with a broker that didn't charge a fee (they made their money from setting up the mortgage with the bank on a commission basis).

£695 I ask you!

And you thought recruitment agencies took the p*ss.

[northernladuk]

It's not just about the fees. It's possible to get a mortgage with fees but a slightly lower rate than a mortgage without it so it can be worthwhile. Fees are pretty common so I am surprised you are getting pissed off. I was quoted a couple ranging between zero and 999 from Freelancer Financials. When they explained it the £999 was actually a much better deal over the tie in period and even more so if I kept it after that.

Also, I would like some clarification from one of the providers. Isn't the fee used to secure the money from the BoE or something. I seem to remember it was explained to me that you pay them to lend the money or something which is why you can port them without penalty as you kind of own that loan. Be interested if someone could clarify.

[Hireonomy]

It's not just about the fees. It's possible to get a mortgage with fees but a slightly lower rate than a mortgage without it so it can be worthwhile. Fees are pretty common so I am surprised you are getting pissed off. I was quoted a couple ranging between zero and 999 from Freelancer Financials. When they explained it the £999 was actually a much better deal over the tie in period and even more so if I kept it after that.

Also, I would like some clarification from one of the providers. Isn't the fee used to secure the money from the BoE or something. I seem to remember it was explained to me that you pay them to lend the money or something which is why you can port them without penalty as you kind of own that loan. Be interested if someone could clarify.

I think he means the Proc fee (or fee a Consultancy charge for their services over and above the product / booking fee).

And re the product fee... yes, that's the fee to ring-fence that amount of money on that particular rate.

[MickeyP]

I think he means the Proc fee (or fee a Consultancy charge for their services over and above the product / booking fee).

And re the product fee... yes, that's the fee to ring-fence that amount of money on that particular rate.

Correct. Keep up NL.

[Sausage Surprise]

Just been quoted a £695 fee for remortgaging by one of the main contractor mortgage brokers that frequent this board. This seems a lot considering I have to pull it out of my own pocket and can't add to mortgage.

Do they all charge a fee these days? I recall some years ago dealing with a broker that didn't charge a fee (they made their money from setting up the mortgage with the bank on a commission basis).

£695 I ask you!

I tried that one too and they asked for the £695 up front before they'd even got the mortgage. I didn't bother them further.

[Scruff]

My wife is a Professional Mortgage Advisor and charges a flat fee. The fee is for a professional service, just like you and I charge, as contractors. For that fee, you get her expertise and the benefit of her years of experience and access to rates and terms that you can't usually get, as a man in the street. Invariably you will save more than the cost of her fee, over the term of the mortgage.

The cost of a professional - £xxxx
The cost of an amateur - Priceless

[MickeyP]

I tried that one too and they asked for the £695 up front before they'd even got the mortgage. I didn't bother them further.

Who did you go with in the end? Were you happy with the service?

[ChimpMaster]

I've used FF and they charge a fee - and it's well worth the effort they put in.

[Sausage Surprise]

Who did you go with in the end? Were you happy with the service?

Ben @ Power Mortgages .....great service, discounted fee for CUK members too.