Our mortgage fees are a fixed percentage of the amount you are borrowing. If commission is paid by a lender, we use that to reduce the amount you pay on completion. That way we avoid the commission bias and the lender subsidises part of your fee
Commission kills Independence
Mortgage advice is not free. We are not subsidised by any lender or the government. But there are many different ways of charging fees, and indeed some brokers who claim to charge nothing at all.
Historically, lenders have received most of their business from brokers and in return they have paid “introducer fees” (commission) back to those brokers. The problem is each lender pays a different amount. That means there is a real bias when it comes to choosing the right deal for you. Indeed some lenders don’t pay any commission at all for certain deals – often the best ones! A broker working on commission income alone is unlikely to show you these deals.
So what should you pay for mortgage advice? There’s no right amount, but in our view it should take into account what the lender pays the broker. When a mortgage is placed with a lender, if there is commission payable, it will be paid regardless of whether or not the broker charges a fee. So the broker could charge a fee and earn the commission – which obviously doesn’t solve the bias problem.
That’s why we have a fee which is a fixed percentage of the amount you are borrowing. If commission is paid by a lender, we use that to reduce the amount you pay on completion. That way we avoid the commission bias and you benefit if a lender is willing to pay – in effect the lender is subsidising part of your fees. Most lenders do pay an introducers fee, although the amount varies, so in most cases there will either be very little or nothing to pay on completion.