RobsyUK

iTrader: (2)

When we purchased our house we were first time buyers and our morgage advisor seemed great. All we did was sign where she said and as far as Im aware we didn't pay a thing as she earned commision from the banks.

I just got off the phone from an advisor and it looks like we have to pay him £500 fee - Thinking back I can't remember if we paid last time.

can anyone shed some light?

njkmrs

Check your paperwork as any advisor should have stated what he/she was making from the deal .Whether from you directly or from the mortgage provider .

stilover

Some charge a fee upfront, others get commission from the lender you sign with.

Chip

My daughter who is a private banking manager and former mortgage advisor says:

Did you get a key facts illustration or mortgage offer letter as ALL charges HAVE to be documented in that even down to the £30 CHAPS payment for the electronic transmission of the laon amount to the mortgage company legal advisor.

Did you go to a bank or a broker? If a bank which one?

Chip

RobsyUK

iTrader: (2)

Chip yes we did get all of that thanks. From the stuff the broker sent us he get X amount from the banks as commision and then wants X amount from us. We haven't agreed to go with him yet as like I stated before - I'm sure we didn't pay the previous one...

Chip

If you have not done the deal and it has not cost you anything yet got to whoever the mortgage was going to be with and do it direct and thyen you will get the same if not better rte and pay no broker fees.

Also she says be very careful if offered life cover because they will try to sell you a policy each whereas you should be offered a decreasing term assurance joint policy to cover the sum of the mortgage, then if you require extra life cover to provide a lump sum to loved ones then you can look sole or joint cover policies.

Chip (not a FPM)



Who is the mortgage with? PM if you like.

markjmd

iTrader: (11)

Not sure what part of the country you're in, but £500 seems pretty steep for a flat-fee job. More than 50% higher than what I paid for mine a few months ago, 20 miles outside the M25.

RobsyUK

iTrader: (2)

Funny enough we were just thinking lets go it alone. was googling and it looks like some banks are not giving out commision any more - hense the charge.

I thought £500 was steep considering we are trying to save money.
Chip I don't mind being open,
We were offered a 10% deposit with Santandar - we are with these currently.
We were also offered a 5% deposit with Skipton - Just asked them to call me to arrange an appointment.

Note*The above are not set in stone yet! Just two options that were offered to us,

And interestingly we currently have individual life insurance but I'm sure at the time it was cheaper to do 2 singles rather then joint.

Chip

Check out Yorkshire building Soc (not bank).

And my daughter does not work there in case you are wondering.

Chip

Mike-K

I took my original mortgage through bairstow eves and they didnt charge commission even though I didn't buy my house through them. I payed my last mortgage adviser £200.
Any independent advisor can get the same deals so I think next time I'll be using someone that doesn't charge.
Good luck!

Chip

Not necessarily, thats why she mentioned Yorkshire as certain products they only sell themselves and nowhere elase.

Chip

RobsyUK

iTrader: (2)

.... gonna check out yorkies... ITS NOT FOR GIRLS!!

andys

The law has changed and FAs can not make there money on comsisions from banks anymore so have to charge the client instead

Chip

Wrong , they can and mostly do get commision from the lender rather than the client.

Chip

andys

Yes sorry changes have not come in yet

http://www.bbc.co.uk/news/business-13842912

From January 2013, IFAs will not be able to take commission as a form of remuneration but instead will have to quote a fee for the advice given to you.

Chip

mart360

Just done my remortgague myself through my Bank.

We approached an adviser, who found some deals, but all had fees, despite saying we wanted to save money.


In the end we went to my bank,

No fees, and completed in just over 18 days


Mart

RobsyUK

iTrader: (2)

I think this is what we will do. Even the fee's he showed us was him getting £800 from the banks as commision & £499 or 1% from us - like yourself we are trying to save money...

cookstar

iTrader: (6)

My guy charges me £100 a time, worth every penny.

EddScott

Unless your mortgage is interest only which means DTA will be inappropriate. Also, if two people moving in together are not married having two seperate life policies might not be such a bad thing if they later split and one stays - the life policy would have to be renewed and if a few years later or the one staying has been ill it will be more expensive. I know of two life companies that will allow seperate policies but only one set of charges just for this sort of thing.

Key Facts should give you all the charges. I know some advisers will charge a non-refundable fee for reseaching the market for you and then you go and do it yourself. I prefer to charge a direct fee rather than from the lender - makes it far more transparent and the clients are completely aware who gets what.

You should also receive a letter detailing the reason for the recommended mortgage - this should also have a description of all the costs.

Just as an aside - don't forget to pay attention to the arrangement fee. Divide the arrangement fee by the number of months of the special rate period. Add that to your monthly payments and then judge whether the lower or higher rate is cheaper overall

i.e. high rate, low or no fee. Low rate, high fee.

The lenders work on the basis you're trying to stuff yourself into a mortgage you can't afford so look for the cheapest rate and don't worry about the arrangement fee as it can be added to the loan amount - thereby increasing how much you have to pay back + 25 years interest on say a £2K arrangement fee.