Mortgage Broker Fees
When looking to buy a home in the UK, you will typically require a mortgage. Many lenders are willing to offer you a mortgage, and a mortgage broker can help you find the best deal so you aren’t left paying more than you should.
Mortgage brokers do not work for free and will require payment. However, the type of payment required varies by their operation, and some do not accept up-front fees. Please read on for an explanation of mortgage fees charged by your broker and how Airborne Mortgage Solutions can help you today.
Mortgage Broker Fees Explained
Mortgage brokers are experts in the housing market. They are there to work for you and to find you the very best deal available. They will usually provide you with multiple options and solutions when you are looking to buy a home. However, every client is different, and some require more work than others, and some cases might be more complex.
Because of this, the standard broker fee of 1% might vary. Additionally, not all brokers accept an upfront fee and would rather receive a commission, while others require both. But whatever the costs, your broker is legally required to answer all questions related to payments and provide unbiased mortgage advice on all relevant options for your situation.
Standard Fees of Using a Broker
Not all brokers charge the same when you use their services. However, a standard mortgage broker fee will typically apply. For example, it is common for a mortgage broker to set a maximum of 1% of the value of your mortgage. But some brokers will charge less, and some require upfront costs or payment upon completion of a service.
Lenders also pay brokers. In the UK, the standard procurement fee paid to brokers is 0.35%. This cost doesn’t affect your mortgage, and you will not need to contribute. Therefore, for example, most mortgage broker fees charged on a £150,000 deal is £1,500. However, many brokers charge a lot less, at around 0.3%. If you are unsure about any fees, make sure you inquire with your broker as they are legally obliged to explain charges to you.
The Reasons a Broker will Charge You
Of course, brokers do not work for free, and they are entitled to be paid for providing a professional service. It may look like brokers have an easy job, but it is complex and time-consuming.
The benefits of a typical mortgage broker include but are not limited to:
- Market analysis for the best price.
- Mortgage product price comparison.
- Negotiating terms and conditions with a lender.
- Finding a mortgage based on a complex affordability calculation.
- Filling out paperwork and meeting application deadlines.
Additionally, when you pay mortgage broker fees, you enter into a contract. This contract ensures that the broker acts on your behalf to the best of their ability. Because they have been paid for a service, they are obligated to work reliably and professionally.
Don’t Hesitate to Get in Touch with Us
At Airborne Mortgage Solutions, we can help you find the best deal, no matter your circumstances. Our focused and knowledgeable experts provide a supportive and approachable service.