The Real Costs of Mortgage Advice

Costs of Mortgage Advice

When you are considering the costs of mortgage advice, getting the right mortgage or remortgage deal can save you £100s each month. It can be difficult to find the right mortgage – this is where a good mortgage broker is worth their weight in gold.

Do Mortgage Advisors Charge?

So, what are the costs of mortgage advice? Do mortgage advisors charge? Maybe the first question you should ask is, “Will a mortgage broker find me a cheaper deal than I can find on my own?”

A broker will help match you with the best deals you’ll be accepted for, including those exclusive to brokers. They often have access to special deals that aren’t available directly to customers. They’ll know which lenders are most likely to lend to you.

Mortgage brokers will search the market to find you a good mortgage deal. By using one, you will cover a huge range of lenders, and additionally get influence with them to gain acceptance, as well as an extra level of protection if things go wrong.

Government Mortgage Schemes

They will also be able to advise you on Government mortgage schemes, such as shared ownership and Help to Buy loans. Tell us upfront if that’s what you’re looking for and we will be able to tell you if you’re eligible.

Qualified mortgage brokers are useful in understanding the key details about lenders’ criteria. So we know if the lender you’re thinking of using doesn’t lend on properties with short leases, or houses in need of major renovation – so we’ll be able to recommend a different lender that does.

It is important to find a broker you’re happy with. Estate agents will often recommend brokers, but you are NOT tied to using these, even if you buy via that estate agent.

What are the Costs of Mortgage Advice?

In some cases, the cost of mortgage advice can vary from around £400 – £500 to no fee at all; instead the mortgage broker instead receives commission from the lender. Sometimes the broker will charge one or the other, and in some cases they will receive both a fee and a commission.

You have the right to know beforehand how your mortgage broker will be paid. Remember to ask whether they take a fee from you, commission from the bank or lender, or both. You should also ask how much the fee will be, and confirm that any fee you pay will depend on the mortgage deal proceeding.

Some mortgage brokers will let you decide whether to pay a fee or let them take commission instead.

Do mortgage advisors charge? Mortgage Broker Fees or Commission?

There is no particular advantage to having a mortgage broker paid by commission instead of a fee. A broker paid by commission is still able to give you unbiased advice on the best mortgage deal for you, though you should ask about this in advance. Here at Stuart Brown Mortgage Services, we aren’t tied to just a few providers, so we can advise you on all available products.

How Much Commission do Mortgage Brokers Receive?

Sometimes, mortgage lenders will pay mortgage brokers a commission, or procuration fee, of about 0.35 per cent of the loan size. Consequently, for a £100,000 mortgage, a typical commission would be £350. None of this is paid by yourself, and it doesn’t affect your costs or rate, in any way.

What Fee Should A Mortgage Broker Charge?

A mortgage broker’s fee can vary from nothing, to around 0.3 per cent of the loan size to one per cent. So, for a mortgage of £150,000 a fee at 0.3 per cent would be £450.

With a good broker, you are going to get the best possible deal as you would be searching the market yourself except you don’t have to go through the hassle of doing that.

The real benefits of advice extend far beyond getting a good deal or better service. In reality, a mortgage broker can often beat high street deals, making it worth seeking advice every time you remortgage.

Do mortgage advisors charge at Stuart Brown Mortgage Services?

So, what are the costs of mortgage advice at Stuart Brown Mortgage Services? We believe in providing an excellent service and, as a rule, rely upon the fee received from the lender. Consequently, we will not normally charge a fee for our service.

As a result of this, we are much more reliant on referrals from our clients and recommendations. We hope that once you have used our service you will confidently recommend us to friends, family and colleagues and become a repeat customer yourself!

The Financial Conduct Authority (the organisation that regulates Mortgage & Insurance Advice) dictates, however, that we must offer our clients the option of paying us a fee to prove our independent status. If, therefore, you would prefer to pay us a fee, then this option is also available to you. We will not then receive a fee from the lender.

How To Get Mortgage Advice

“Stuart and Sharon have arranged a buy-to-let mortgage, a mortgage for our first home together, a re-mortgage and have now helped us port over our mortgage to a new house. The service they have provided has been consistently amazing, especially as our purchases have never been straight forward. I would recommend them to anyone.” Dominic, Surrey

“Stuart was recommended to me by a friend and I would certainly continue that recommendation. He is very thorough and ensures you know all the options. Stuart makes the process clear and you feel informed the whole way. Thanks Stuart” Danielle C, Hemel Hempstead

“Stuart is an expert in his field, giving great objective advice after careful and deliberate diagnosis of what we were after. I can confirm he is also a very patient man. Highly recommended!” Alex C, Leighton Buzzard

“Remortgage quickly sorted out today via phone/email. All options explained and discussed and I’m very happy with the outcome. Thoroughly recommend.” Craig B, Sunny Scotland