Independent Mortgage Brokers
How we are paid...
We are paid in several ways:
1. For mortgage advice you can choose how we are paid, pay a fee of usually £500, or we can accept commission from the lender. The amount of this payment shall be disclosed to you at the outset if it is more than £250. Please note that the amount does not affect the rate that you receive neither is it added to your mortgage or paid in any way by you. It is a low cost way of the lender ensuring that they can attract new customers without relying on them walking through their doors.
2. We are paid commission by the insurance company for any protection affected by you. This amount can be clawed back from us by the insurance company if you do not keep up the premium payments for a between 24 and 48 months depending on the companies rules. Because of this we will ask you to sign a fee agreement which states that you will pay a fee of £295 to us if you cancel the policy within the clawback period.
3. We do not like to charge you a fee because we are receiving payments from the above sources for arranging your new mortgage however, if you decided that you only require a mortgage from us and no protection then we will charge you a one off fee of just £295 on completion of the loan. This covers our costs and ensures that we can continue to give quality advice and services to our clients. The amount is less than you pay a solicitor and far less than you pay in interest to the bank or building society. The protection policies referred to above only include life cover, critical illness cover and income protection not buildings and contents or redundancy cover.
4. We may also charge a fee where it is a particularly tricky to find a mortgage for you, for example you may have a very poor credit history or you may have difficulty proving your income. If this fee applies to you we will make you fully aware from the outset. The maximum fee will be £495 unlike some mortgage brokers who will charge up to 2% of the mortgage. Our opinion is that the fee should be charged on the amount of work involved rather that the size of the mortgage.
Please do not hesitate to ask if you are unsure of what fees you will need to pay as we try to keep our fee structure as straight forward as possible to avoid any nasty surprises.
Your home may be repossessed if you do not keep up repayments on your mortgage.
For mortgage advice you can choose how we are paid, pay a fee of usually £500, or we can accept commission from the lender.
The FSA does not regulate legal advice and some forms of mortgage.
The overall cost for comparison is 9% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
