What do mortgage brokers charge?
The first meeting with your mortgage broker is usually free, following that, an hourly charge of £50 to £150 (plus VAT) is typical. Sometimes you can negotiate that your broker receives commission from the deal instead.
Always ensure that your mortgage broker explains their charges on your first meeting – you should receive an Initial Disclosure Document explaining their policy.
When your broker recommends a mortgage, they must also outline their reasons for choosing that deal in a Key Facts Illustration document. The document will also include details about the broker’s fee and any commission.
Should I pay fees or commission?
Paying your mortgage broker an agreed fee is advisable. If you agree to pay commission, your mortgage broker’s advice may be influenced by the amount they’ll receive from that particular lender.
Whichever option you take, always check the mortgage you’re offered against the latest Best Buy tables – you can access these tables from the Financial Service Authority’s website.
