How much do mortgage brokers charge?

Brokers charge for their advice in a variety of ways.

           1) Fee-free

Rather than you paying for the advice you receive, some brokers offer mortgage advice free of charge, because they are paid in commission from lenders rather than by customers. This means you don’t have to pay anything at all, although some may receive commission and charge you a fee on top of this.

Brokers who receive commission from lenders should still provide you with unbiased advice. It is worth checking, however, that they can research the whole of the mortgage market to help you find the best deal, and that they don’t offer restricted advice, which means they are tied to just a few lenders.

           2) A percentage of the loan amount

Some brokers will charge a percentage of the mortgage amount. This tends to be between 0.3% and 1%. So, for example, if you’re borrowing £200,000 and the broker charges a fee of 0.5%, you can expect to pay £1,000 for advice.

           3) A fixed fee

Other brokers may charge a fixed amount for mortgage advice, which typically ranges from around £300-£700.

           4) An hourly rate

Alternatively, you may be charged by the hour for mortgage advice. Bear in mind that while this can be cost-effective if your circumstances are relatively straightforward, it could prove expensive if your situation is more complicated and there is lots of to-ing and fro-ing between the broker and lender.

Author: wpadmin

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