I've been offered a first time mortgage...?

Question

my mortgage broker is charging a fee of £2500 including £415 for solictors fees...is this high? i would appreciate your advice. thanks.

Answer 1

I went directly through the building society, and the fee was £400. My solicitors fee is also around £400, but that doesn't include any of the searches (which whacks it all up to £1000ish).

I think the £2500 sounds a bit steep, when we had a look through independent advisers I think the fees were more like £1000.

Answer 2

The solicitors fee seems reasonable. At first glance, the 2085 pounds broker fee appears exorbitant.

You need to ask what the fees are for exactly. Request an exact fee breakdown.

Find out what services the broker will perform for that money.
Some brokers charge nothing for this service and survive purely on the commission they receive from the lender.

Also find out if there is an additional fee that you have to pay to the lender (often called an 'arrangement fee' or 'lenders fee').

I would recommend that you read the free mortgage advice on the following website http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1157017651,88404, . There is a free downloadable booklet.
The website recommends several brokers who charge no fees.

Talk to 3 reputable brokers/traditional high street banks, then compare quotes to obtain the best deal.

Best of luck !

Answer 3

Im a mortgage broker and charge about 250 quid(depending on circumstances). solicitors fees should be around 400-600 on average, plus stamp duty, youll probably pay a valuation fee and lender arrangement fee,they vary depending on lender. My guess is that is is a large company that knock on doors and try to get what they can out of the vunerable

Answer 4

I think it depends on the type of mortgage you're getting. From what I can remember, our arrangement fee was quite low (but £415 for solicitors is excellent - ours came to nearly £1500!). Overall that sounds about right.

Answer 5

If you're dealing with a mortgage broker, you have negotiating power of their fees! Now, you have to decide wether or not his service is worth what he is asking for. If he is providing you with service that exceeds your expectation, then you might decide it's worth it for you! Just like anyone else, we have to EARN our keep!

Answer 6

So called Brokers are often just crooks who take your money and give you a list of lenders you could have found in the phone book.