Reply to: Mortgage Broker Charges

[LondonPM1]

I've used Freelancer Financials for 4 or 5 mortgages now, BTL and residential. Wouldn't go anywhere else.

London and country fee free - No hassle

[northernladuk]

Any recent broker recommendations?

Had everything set up with CMME last year but they tailed off badly, weren't interested at all.

I've used Freelancer Financials for 4 or 5 mortgages now, BTL and residential. Wouldn't go anywhere else.

[saptastic]

Any recent broker recommendations?

Had everything set up with CMME last year but they tailed off badly, weren't interested at all.

There is info and contact info here on CUK:

Contractor Mortgages Information and Quotation

What is a contractor mortgage broker and do I need one?

[mikedarv]

Any recent broker recommendations?

Had everything set up with CMME last year but they tailed off badly, weren't interested at all.

[northernladuk]

I think they are still a valuable tool as part of the decision making process. I recently got a list of BTL providers from Freelancer while renewing mine and there were 100s of them, most I'd never heard of. The first name I recognised were nearly out of the top 10 best products. Also during the process the list changed and managed to swap to an even better one so in thst case they were worth their weight in gold.

Nothing to stop you speaking to them to see what's available and comparing it to your list and then picking the one you want.

I don't think their time is done by any stretch of the imagination.

[Lance]

Last time I asked a broker to get me a mortgage price, he got some, and gave them to me, for me to then ask why they weren’t as good as the ones I’d found online.
His answer was that this company wasn’t available for brokers so they can’t offer it.

I think mortgages are not really a market for brokers now. It’s too easy to find a good deal and there are enough mutuals out there to keep prices keen.

The only place left for advice is around personal circumstances. But I ain’t paying £500 for someone to tell me I’d be better of paying a higher interest with a zero starter fee when I want a small mortgage.

[WTFH]

I have taken out more than 10 - I asked you already for a mortgage broker who charges a fee but does not take the proc fee

You gave me a general list - Can you provide one name and website

Most brokers including those who charge like freelanc financials take the broker fee AND proc fee

The last one I used is now retired. He gave me the option of paying him a fee, or having it as a cut from the lender (or as zonk calls it "free").
I chose the option of paying him the fee. The rates he was able to find and offer me were less than the rates being quoted online because he wasn't taking a "proc fee"/kickback/cut/commission from the lender.

[LondonPM1]

i.e. not free.

The 0.3% comes from somewhere.

As for advisors charging a fee only, obviously you are refusing to read the links provided.

Now, tell me how many mortgages you have taken out in the last 20 years using an advisor and how they got paid for the work they did for you.

I have taken out more than 10 - I asked you already for a mortgage broker who charges a fee but does not take the proc fee

You gave me a general list - Can you provide one name and website

Most brokers including those who charge like freelanc financials take the broker fee AND proc fee

[WTFH]

Exactly - And believe me that LandC got a 0.3% procuration fee

i.e. not free.

The 0.3% comes from somewhere.

As for advisors charging a fee only, obviously you are refusing to read the links provided.

Now, tell me how many mortgages you have taken out in the last 20 years using an advisor and how they got paid for the work they did for you.

[LondonPM1]

By ensuring that the mortgage rate they try to 'sell' me is competitive.

I never paid any money to mortgage brokers (but used London and Country 3 times). I got a range of offers each time and I chose the one that suited my needs best.

My current interest rate is 1.19% variable remortgaged directly with the bank once my fixed rate was up (bank introduced by L&C on a very good fixed rate, with no broker or application fee).

Exactly - And believe me that LandC got a 0.3% procuration fee but no broker fee from you

Some brokers charge a fee and a procuration fee - Never seen any advisors not getting a proc fee

[zonkkk]

How is it free for you?

By ensuring that the mortgage rate they try to 'sell' me is competitive.

I never paid any money to mortgage brokers (but used London and Country 3 times). I got a range of offers each time and I chose the one that suited my needs best.

My current interest rate is 1.19% variable remortgaged directly with the bank once my fixed rate was up (bank introduced by L&C on a very good fixed rate, with no broker or application fee).

[WTFH]

I never said the brokers do their work for free. I said it's 'free for me'.

How is it free for you?

[zonkkk]

The lender's arrangement fee will cover the commission* the lender pays to the broker so it'll never be totally free.

I never said the brokers do their work for free. I said it's 'free for me'.

It's "free" for you, because you're not seeing it as a single payment, instead it's a sum added on to the mortgage repayment.

Only if you can't run a simple mortgage rates check online.

[Scruff]

The Procuration fee is separate from any commissions paid. It is effectively the fee for the Mortgage Advisor's professional services, and is levied by the Mortgage Advisor.

The Commission earned is paid for by the Lender.

The Procuration fee takes into account that it is charged to cover where the Advisor provides all the advice and work done to establish and collect the data needed to provide the advice accurately and to gain the best deal (not the highest commission) for the customer. In certain cases the Procuration fee is waived (longstanding clients / circumstantial). It is from bitter and personal experience that once the Mortgage Advisor has done all the work, the customer than takes the results of all that work and gives it to a "friend" to process, hence why it is charged - it removes the straw man from the process.

[ladymuck]

I don't care how much money they make, as long as I get a good mortgage deal (easy to check these days) and it's free for me. No reason to pay for something you can get for free.

The lender's arrangement fee will cover the commission* the lender pays to the broker so it'll never be totally free. It's just less obvious to the borrower as there isn't a direct exchange of funds between the broker and the borrower.


*aka procuration fee / kickback depending on your view of life