X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Property-a-holics

    Mortgage Advisor Fees

    I'm working with a mortgage advisor at the moment who is doing a good job but have said that they are taking a % of the total agreed mortgage with the lender which is 75% of my max bid 160k (120k). However we're likely to put in an offer of 143k - is it right that I should pay the % on the higher amount?

    Thanks for your help.

    Tom
    0
    0
    I dont pay any fee.
    They get a procurement fee from the lender anyway so what they charge you is a bonus for them..
    Some deserve it some dont.
    Some charge because they can and they are good and could save you money
    Some dont charge but are no good and could lose you money
    Some are good but dont charge because they want you to come back again and want volume business.
    Some are good dont charge AND pay you a referral fee for bringing in other business.
    I like those ones the best :-)
    .
    0
    0

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


    (05-02-2014 08:18 AM)mrtomollerton Wrote:  I'm working with a mortgage advisor at the moment who is doing a good job but have said that they are taking a % of the total agreed mortgage with the lender which is 75% of my max bid 160k (120k). However we're likely to put in an offer of 143k - is it right that I should pay the % on the higher amount?

    Thanks for your help.

    Tom

    Hello Tom

    Even though I am personally not your Adviser, I do know who is and I would like to make very clear to everyone here that the picture is NOT exactly as you are painting.

    First, I do also agree that your Adviser is doing "a good job" - in fact knowing the case as I do (that's my job as the compliance official) the truth is that your Adviser is doing a very good job over and above what any other mortgage salesman would do, including weekend conversations, emails and property purchase and due diligence looking at specific properties too!

    Your Fee is agreed upfront (as it should be) for the comprehensive work that is carried out with you and behind the scenes for you, to ensure an efficient and satisfactory conclusion. As a professional Firm, we make very clear our fee charging structure upfront and either our prospective Clients take advantage of our service, or they choose not to.

    @Jonathan - "I dont pay any fee. They get a procurement fee from the lender anyway so what they charge you is a bonus for them.." A 'bonus'!? Sorry, after working as a professional financial consultant for the last 21 years and having had to deal with numerous changes in legislation, lending criteria updates with little or no notice, firefighting valuers reports, complex portfolio reviews and restructures, providing substantial research reports, hand-holding 'newbie' first time buyers and landlords and ....(I could go on), well, the word 'bonus' is fundamentally irrelevant.

    And, are you aware, that some lenders (eg C&G, HSBC etc) don't pay any procuration fee at all anyway? If an HSBC mortgage is right for my Client, I will still advise them to go there. If they want me involved, then a professional service is being instructed.

    Jonathan, you also (kindly) say "Some charge because they can and they are good and could save you money" Please check out this link which make me feel very proud of how good we are and why we do indeed charge for a professional service that our Clients benefit from (which many of our Clients do repeatedly, over many years) > https://www.hdconsultants.net/awards/

    Howard.
    0
    0

    Hi Howard

    Sorry sorry I couldn`t help it. :-)
    I had a kinda sneaking feeling that the word `bonus` would make the hairs on your neck stand up and draw out your excellent post.
    I should have tempered my language

    Tom

    Howard has done what any quality mortgage broker should do and defended the reason for fees.
    These are justified if you get the right person and they know there stuff. The likes of Howard and Lisa and Simon etc clearly do. My old broker never charged me but was of the same calibre of the ones we get on PT . Mine saved me 12K one time because he spotted something that others would not have. If he had charged a fee I would have gladly paid him but he chose not to as he got volume business from me and referrals.

    I went through about 8 advisors before I settled on mine. Unfortunately ill health has recently curtailed his business. I`ve used in house estate agent ones before to get a deal through. Some were excellent and some so wet behind the ears I knew more than them.

    All mortgage brokers are not the same.

    .
    0
    0

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


    In this type of fee structure Tom Ollerton is it common practice to get a % of the LOAN. No higher/lower amounts just the actual loan. Hopefully the advisor issued you with an IDD from the outset explaining the fee's they charge.

    If the loan amount changed since the IDD, such fee agreement should change to reflect that, I dont think a broker should not penalize you for negotiating and getting a better deal.

    The issue with the % fee of loan model is that as a broker you penalise larger purchase clients. Their is the same amount of paperwork for a £100k mortgage as their is for a £300k mortgage, yet a % fee does not reflect that.

    A flat fee structure seemed a more fairer practice, our brokers get paid what they expect for the work they do and the "proc fee" for larger loans (is a nice bonus @johnathan ! grr).
    0
    0

    THIS PROPERTY TRIBES ACCOUNT IS NO LONGER USED. DO NOT SEND PRIVATE MESSAGES.

    YOU CAN REACH ME AT BESPOKE FINANCE for HMO Mortgages, Cheap Life Insurance and Limited Company Buy-to-Let on 08009202001