wwp8

anyone know any fee free mortgage brokers, (looking for a remortgage)

HomerJunior

iTrader: (1)

I know of a couple. I used Mortgage Force for my mortgage and they were ok.

I work near another guy though from Oracle Financial Solutions though and he is really good. His name is Deep and his contact number is 0845 458 0460. Give him a call and tell him that Edwin sent you. He should be able to help.

Good luck!

davyboy

Don't most of them get paid by the lender anyway?

HomerJunior

iTrader: (1)

That's right. They all take a percentage from the lender for selling their product. Fee free Mortgage Brokers only take this payment but other Mortgage Brokers levy an additional charge. I still have no idea how they stay in business!

I am not in a mortgage industry but have just gone through buying a house so am reasonably up to date with the whole malarky!

Account deleted by request

They do but only about £400 per mortgage, which is not enough to keep an advisor in business. IFA's make their money out of insurnace policies, easy to make 1.5k + commision per case.

Normal fee to pay for remortgage etc is 400/500.

chop

davyboy

I dont think they get even that much, depends on the lender I guess.

I know a mortgage guy wont earn much arranging Nationwide mortgages, but may make a few quid selling Northern Rock and a few life insurance policies.

sarasquares

iTrader: (1)

What Mortgage

Robert Rosario

So if Nationwide is the most suitable for the person who needs the mortgage, does he recommend Northern Rock??

You go to a broker who charges a fee. He/She then searches the entire market to find you the best product even if he/she gets nothing from the lender. They dont care if the lender pays them nothing, their costs are covered by the client fee. Then, the person who takes arguably the biggest financial decision of their lives gets best deal, broker earns a fee to cover his costs, everyone is happy and treated fairly.

Some (but not all) brokers who dont charge a fee are totally useless and will not give you the best product, they will just recommend the ones which pay them the most.

davyboy

Maybe a less honest FA "might" try that.

3times

Any Independant adviser must offer a fee paying option - FSA rules.

Most high st lenders pay around 0.35% of the loan, normally with a minimum £150-£200. For self cert, offset, BTL you get around 0.5%, sub prime up to 2%. (note to self - need more sub prime).

I charge for mortgages but offset by the amount recieved by the lender ie I need £500, lender pays £350, I charge £150.

Mostly if there are insurance products as well I look at the big picture and do not charge a fee.

Most life assurance pays the adviser 140% of the first years premiums (can get more sometimes) but this will have a 2-4 year indemnity period which means if the policy is cancelled within that period the commission is clawed back pro rata.

Fee free is not always best as the adviser may not be independant.

shop around.