Do Mortgage Brokers Charge A Fee?
Using a mortgage broker is a fantastic way of getting a great mortgage deal that is suitable for you in the long term. We are often asked if mortgage brokers charge a fee?
Some mortgage brokers do charge a fee of some sort, and some don’t. So is it better to go with a free mortgage broker? Not always.
Confused? I’m not surprised! Let me clear it up for you!
What Type Of Fees Do Mortgage Brokers Charge?
There are a number of ways mortgage brokers get paid, here are some ways mortgage brokers get paid:
This is how we work at Burnett Mortgages. It is a flat rate. You are charged one fee for all our work. You know in advance how much you will pay and that is it.
No hidden extras and no nasty surprises. If it takes us longer because your case is complicated, you don’t pay any extra. If you are a first time buyer we won’t charge this fee until your mortgage offer has been issued!
Some brokers charge a percentage of the value of the property.
This can be good if you are buying a low-value property but not so great if you are buying a property with a hefty price tag. You could be paying way over the odds for mortgage advice and brokerage.
Should I Pay For A Mortgage Broker?
Not all mortgage brokers charge fees, and that doesn’t necessarily mean they are better or worse than any other broker.
Or maybe you are wondering if you even need a mortgage broker?
You don’t have to use a broker at all. You could go straight through your bank or to a high street lender directly but you will only have advice on their products.
However, mortgage brokers have access to a range of mortgages that the general public may not have access to themselves. Especially whole of market broker firms like us here at Burnett Mortgages.
We aren’t tied to a particular lender so can scour our resources, use our experiences and leverage our professional relationships to find you a fantastic mortgage.
The Money Advice Service advise using a mortgage broker because it helps to ensure your mortgage is suitable for your situation and lifestyle and will help you navigate the murky waters of borrowing money.
If you don’t take advice, you could end up:
With the wrong mortgage for your situation, which would be a costly mistake in the long run.
Being rejected by your chosen lender, because you didn’t understand the restrictions clearly or what circumstances the mortgage was designed for.
As an industry, we are regulated by the Financial Conduct Authority (FCA). We need to ensure the mortgage we arrange for you is suitable for your unique circumstances.
This is to make sure you will be able to afford it long term.
Using a mortgage broker to find a mortgage means greater choice, advice from a regulated and competent person, and the option to go to the Financial ombudsman if it turns out the mortgage wasn’t suitable after all.
Are Mortgage Broker Fees Worth it?
Well, we can’t speak for everyone but ours certainly are!
We charge one fee for our services. After that, any further work we do with you doesn’t cost you a penny. This includes remortgages.
We want to be your mortgage broker for the whole of your mortgage-paying life. We work hard to build and maintain our relationships with our customers.
If you are considering a mortgage or remortgaging, why not have a chat with me to see if I am the right fit for you? I would love to hear from you.
You may have to pay an early repayment charge to your existing lender if you remortgage
Your home may be repossessed if you do not keep up repayments on your mortgage.