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  • Mortgages & Finance

    Cost of Broker

    0.3% to 0.4% of the loan, for every £50k loan that's about £200.
    Except that is not profit, its gross you then have to minus Insurance Fees and Regulatory Fees which increase relative to the loan amount.
    Minus the usual business costs of running an office and having back office staff.

    It's not "enough" for a proper advice firm to give you that one to one support on small loans. It is for a factory like L&C.
    You never know, that may change most management left L&C when Experian bought a majority stake in it.

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    My posts are not financial advice but often me rambling - passing time on a coffee break.
    Our team at Bespoke Finance offers Limited Company Buy-to-Let and Cheap Life Insurance.

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    The firm "John Charcol" is a fee charging brokerage, their office is our second port of call. Fantastic firm.

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    We have used L&C too. Been pleased with them so far so will continue until we aren't.



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    i pay my guy £200 to £300 per mortgage, he also gets a fee from the lender which is shown in paperwork, again this varies, i possibly get a good deal as a fairly regular client, i believe the "going rate" for brokers is around £500

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    I pay no fee to mine they just take the proc fee

    Last proc fee was 700 .

    At say £25 an hour that`s 28 hours work which seems about right from start to finish

    With PRA their workload has increased quite a bit

    One of my clients paid £1000 broker fee . Madness

    He went direct next  time as he knew what he wanted and in fact got a very good service

    I`m happy to pay up to say £300

    I once paid 750 to an agents broker just to get the deal and keep the agent sweet

    My  broker saved me 12K once on a transfer . So a good one is worth their weight

    A poor one just puts your data in and presses a button and takes the deal that comes out on top

    They do pay for the expensive software though so up to £300 is a good balance maybe

    Anything over that is being a bit greedy I think

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    Jonathan Clarke. http://www.buytoletmk.com

    Try @SarangMAB on Facebook or ring him on +447878929733. Just have a chat and hear his thoughts on your needs. I think you'll find him quite good.

    He doesn't focus on the commission side of things but rather getting the right deal for you. Like others have mentioned, he charges around £400 but it's worth it for me if he finds a product that ends up saving me interest of £2k per product.

    I would personally recommend him. Even if you don't proceed with him then there is no charge for the initial conversation and you get that initial advice for free.

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    Saagar

    Disclaimer: I have no legal expertise nor am I a qualified advisor on any subject. A humble landlord using an open forum to exchange ideas and experiences.