A mortgage broker typically has a number of ways to make their money. All mortgage brokers charge different fees, so it is essential that you find this out prior to working with one. Below are the different ways that mortgage brokers can collect their fees.
1) Fixed Fee. A mortgage broker can charge a fee at a fixed rate which is determined prior to work with you. This charge will apply to all their mortgage advice and services.
2) Percentage. Some mortgage brokers charge by accepting a proportion of the mortgage. E.g. A 1% fee on a mortgage that is worth a total of £250,000 would be £2,500 paid to the mortgage broker.
3) Hourly Rate. The more advice you receive from them by the hour, the more that they will charge you.
4) Procuration Fee. Lenders pay brokers a procuration fee on completion of the mortgage,