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Do Mortgage Brokers Charge A Fee?

Written by Simon Burnett on . Posted in Blog.

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, and the answer is as murky as housebuying itself.

It depends!

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?

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There are a number of ways mortgage brokers get paid.

Fixed

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 wont charge this fee until your mortgage offer has been issued

The beauty of this is it is in our interest to be efficient. No dragged heels here!

Percentage

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.

Commission

Most mortgage brokers earn a commission from the lender. Typically this is around 0.35% of the cost of the loan. So, as an example, a £100,000 mortgage would earn the advisor £350. However, this percentage can vary. 

You wouldn’t pay for this. The lender would pay it.

A lot of brokers, including us here at Burnett Mortgages, charge a combination of a Broker Fee coupled with the commission from the lender

Hourly rate

Some mortgage brokers charge a fee but calculate it by the hour.

If you are going down this route with a broker, be sure you get an idea of cost upfront. You don’t want to be hit with a big bill on top of all the other things you need to pay for. 

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.people happy in a new home for blog by Burnett Mortgages on do mortgage brokers charge a fee

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.

However, mortgage brokers have access to a range of mortgages that the general public doesn’t. 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?

Couple decorating their home for blog by Burnett Mortgages on do mortgage brokers charge a feeWell, 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.

Part of this is going the extra mile. Lots of people promise it, not many do it! But we do.

We hold your hand throughout the horribly messy, painful process of buying a house or remortgaging. It is hard enough without worrying about your mortgage on top.

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. 

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What Our Clients Think Of Us

  • Simon took on a challenge for my daughter – less than two months into a new job with time off on sick for Covid testing, turned down elsewhere, and not only found a mortgage that was 25% more affordable, but got it over the line within a week. Thank you – you’re a legend!

    Guy Nottingham – January 2021

  • “A great service was provided to us by Simon, our move wasn’t the most straight forward however Simon statyed with us all the way, a professional all the way through. Can’t thank him enough for his help, will be using his services when it comes to remortgaging.”

    Luke

  • “We contacted Simon originally for some advice and I’m glad we did, from start to finish through our mortgage applications Simon was there for any questions we had. He wasn’t pushy with any of the options and he was definitely knowledgable about what he was doing. He made the whole thing a lot easier for us, we would definitely recommend him and look forward to working with him in future.”

    Samantha

  • December 2020 “This is our second re-mortgage using Simon and on both occasions he has provided us with a first rate service. Personable, responsive, kind and extremely good at his job. I highly recommend him and will continue to use his services as long as he’s offering them!

    Also a thank you to Paulina, who has recently joined Simon’s team and kept in regular touch throughout as well as being very friendly and efficient.”

    Juliette Prosser

  • “Where do I start! Simon has been brilliant to me and my partner and did everything in his power to help us secure a mortgage. Brilliant, friendly person who is willing to go the extra mile. He’s willing to travel to your home to help submit your application and works round what’s best for you.”

    Brendan – January 2019

  • “I cannot recommend Simon enough. He is professional, trustworthy, caring and knowledgable. Simon arranged both our mortgage and our protection. Unfortunately, we found ourselves in a position where we had to claim on the critical illness cover. Without his advice and cover we would have found ourselves in a sorry state. His attention to detail and no-nonsense approach to explaining each product ensured that we were covered. He has eleviated a huge financial burden at a very stressful time. I can’t recommend him enough. I will never use anyone else. This man really does go above and beyond.”

    Nicki – December 2018

  • “Simon is very professional and a genuinely nice guy who will go out of his way to help you, highly recommended.”

    Heather Cooper

  • “First time I had to remortgage. Simon was great with all the advise he had to give me. Brilliant customer service. Will help out the best he can. Replies to all your messages and questions you have for him. Top man, thanks a lot.”

    John

  • “We have found Simon to be a most helpful mortgage adviser. He is knowledgable and listens to clients’ requests and needs. He is very prompt in communication and always goes that extra mile to help. I would have no hestitation in recommending him for mortgaging advice.”

    Suzanne

  • “A true mortgage professional. Great service, with the customer at the heart of his advice. Simon is a credit to the industry if you want a fantastic service and your mortgage made easy. He is your man. Simon, thank you, I am not easy to impress and I am over the moon.”

    Tina

  • Very professional, honest and always at the end of the phone to guide you through everything you need. 100% recommend to anyone. Extremely happy with the service and will use for many years to come.

    Steve Fairhurst – December 2020

  • “Simon gives 100% in all aspects of his work. Highly recommended.”

    Rick

  • “Don’t know where we’d have been without Simon during the most stressful house purchase ever! An absolute rock throughout We would recommend to anybody looking for a mortgage. Absolute first class”

    Becca

  • “We came across Simons website when we were searching for a local mortgage broker. We had just had our mortgage declined from a bank because I only had one years accounts. I emailed Simon and had a response from him within the hour, he said he’d try his best to help us out. He phoned us a few days later to talk about our situation and why we had our previous mortgage declined. With us being first time buyers we were stressed out and we didn’t want to loose a house that we had fallen in love with. Simon made sure that he gathered as much information as possible from me and my boyfriend and found a mortgage and had it accepted within a week or so. I would recommend him to anyone who is struggling to get a mortgage, he’s very down to earth, friendly and professional and we will continue to use him if we ever buy another house in the future!!.”

    Megan – February 2021

  • “A very honest, genuine, hard working individual.”

    Craig

  • “Simon helped us buy our new home in 2016, our mortgage is up for renewal and there was no question who we were going to use! Absolutely perfect customer service, very friendly and helpful. 5 star service I would recommend to everyone.”

    Ashley

  • “My girlfriend & I were left in a tricky spot after our mortgage application was declined having already had an offer accepted. As a first time buyer this was very stressful but Simon consistently reassured us throughout the process. He was extremely responsive to all questions and sorted us a mortgage with a better rate than any other we could find online in less than two weeks. We will definitely be using his services & we can’t recommend him enough!.”

    Nathan – February 2021

  • “Simon provided a professional and personalised service from start to completion. He offered consistent support and guidance to a first-time buyer with little experience of the proces, ensuring a comforting and supportive experience throughout. Would highly recommend!”

    Sam – March 2020

  • “Moved into our first home today after the incredible support from Simon. Hasn’t been a simple journey, with obstacles in our way (from seller and seller solicitors) but Simon was consistent throughout and was availiable at all times of day during the week to make things as easy as possible. Always worked around our awkward schedule including house visits on a Friday night. Can’t recommend him enough. Thank you so much Simon!”

    Jessica

  • “Highly recommended! Great professional.”

    Danny

  • “Simon helped myself and my partner re-mortgage our home recently. It wasn’t straightforward for various reasons, but Simon did everything he could to secure us a good deal – and he did a huge amount of work to make it happen, which it did. He was very professional but also friendly, enthusiastic and caring. His service was excellent on a technical level but more his personal approach made what was quite a stressful process so much easier. He cares about his customers and that shows in everything he does. I highly recommend Simon – he is trustworthy, knowledgable and a genuinely decent person, which is a rare combination!”

    Juliette – November 2018

  • “Simon is very professional and will always find the best deal to suit your needs. Don’t hesitate in giving him a chance.”

    Shirley

  • “Simon was really helpful and efficient, ensuring that our remortgage was sourced and in place in approximately a month. Would definitely recommend, thanks Simon.”

    Julie

  • “Great guy. Hugely helpful from start to finish in a very complicated house buying situation. Thanks Simon!”

    Victoria

  • Simon was excellent from start to finish and in very unusual circumstances. He dealt with our mortgage managing to get us the best deal possible in a time of economic uncertainty and made sure our life insurance was up to scratch too. Despite not being able to be in face to face contact due to restrictions imposed at the time communicating was simple, regular, supportive and effective. He was easy to talk to and happy to deal with questions. He certainly went above and beyond to get us relocated and was excited for us even sending us a congratulatory gift. We will most certainly be returning when it is time to remortgage.

    Alexis – October 2020

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Your home may be repossessed if you do not keep up repayments on your mortgage.

Not all Buy to Lets are regulated by The Financial Conduct Authority.

As with all insurance Policies conditions and exclusions will apply.

You may have to pay an early repayment charge to your existing lender if you remortgage.

There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances. This will typically be £399.

Burnett Mortgages Limited is an Appointed Representative of Stonebridge Mortgage Solutions LTD, which is authorised and regulated by the Financial Conduct Authority. Registered Office : Burnett Mortgages Limited, Gresley House, Ten Pound Walk, Doncaster, South Yorkshire. DN4 5HX. England. Registered Company Number : 11224301. Registered in England and Wales.

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