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How much are brokers' Mortgage fees?

So, you’re about to take on a new mortgage. And, you’re probably wondering how on Earth are you going to be able to do it all by yourself? What's the right deal for you, who will even lend to you & once that's sorted how do you work through the mountains of paperwork. You don’t have to worry. Mortgage brokers can be a great way of reducing stress when you’re going through the mortgage process. But with mortgage fees already mounting as you navigate through the application process are they an expense worth having? Let’s find out - ALWAYS CHOSE A BROKER THAT HAS ACCESS TO A COMPREHENSIVE RANGE OF LENDERS.

What are mortgage brokers?

Seeking the help of a mortgage broker can be a savvy decision. They can offer you information and advice on a wide variety of different lenders, deals, rates and market trends. This can ultimately be very helpful in finding the right deal for you and help put any property-buying / remortgaging anxiety to one side. But as we’re sure you’re already starting to see your mortgage fees mount up, you’re probably asking yourself if it’s worth having one?

Ultimately, it’s important to remember that mortgage brokers are there to work in your best interest. Make sure that when you’re hiring one that they do not have any ties or affiliations with another lender as it may impair any objective advice that you are expecting.

How much are brokers' mortgage fees?

The services of a mortgage broker can be acquired through a number of ways and through a variety of mortgage fee methods. Mortgage brokers have lots of different ways of charging for their services. Normally if a broker has requested a fixed rate then this will usually be around the £500 mark (however it varies from broker to broker). Though, this will be dependent on different factors such as the value of the property you are going for and the time the broker is expected to commit to your mortgage application.

Other brokers will ask to be paid in hourly rates. This is as simple as it sounds. Basically, the more advice that you receive by the hour, then the more that you will be charged.

The most costly way a broker can charge can often be by percentage. This is where brokers accept a percentage of the mortgage amount as payment. While this normally only tends to be about 1%, don’t be deceived! For example, if someone charges 1% of a mortgage which is worth £300,000 then you will be expected to pay £3000 to the broker.

Other ways of paying for mortgage brokers can be through combination. This is where mortgage brokers use different methods of payment. For example, this can mean that brokers charge a fixed rate but will also accept some form of hourly rate or percentage as commission.

How can Mortgages Online help?

While face-to-face mortgage brokers can seem like a great option, we know that if you’re strapped for cash and have mortgage fees in other areas already starting to build up, they might just be a little too costly. But, guess what? We’re free! There are no charges with Mortgages Online!

At Mortgages Online we can provide impartial, 24/7 mortgage advice through our website to help make the move into your new home far easier. Different to face-to-face brokers, our services will come free of charge – so put your credit card down! So, if you’re starting to worry about any looking mortgage fees then this could be the option for you!

LauraWaller

Laura Waller

Laura Waller has been working in the mortgages industry since 2013, joining an independent brokerage in Essex. Laura has CeMAP 2 & 3 – Certificates in Mortgages Advice and Practice. Since then Laura oversees marketing for Mortgages Online, using her experience and expertise to write articles and blogs about mortgages and related topics.

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