Understanding Mortgage Broker Fees

Before taking the plunge and sitting down with your mortgage broker, you’ll want to familiarise yourself with the fees, so there are no surprises. We get it – if you’re seeing a mortgage broker it’s because you’re in the process of saving to buy a house.

That is no small purchase, and so you’ll want to make sure you’re getting the balance right between getting good financial advice but not spending so much that you end up eating into your house-buying budget.

One thing to remember is that brokers are in the business of comparing deals to save you money. They’re also there to find the mortgage that best suits your circumstances.

Most brokers will charge a fee, but differ in how much and at what stage they expect their clients to pay. In any case, a broker should be upfront about how they work and what fees they will charge.

When do you pay a mortgage broker?

While some brokers expect their fees to be paid upfront, others will only charge after a mortgage application has been successfully approved by the lender. In some instances, broker fees are paid by the lender rather than you, in the form of commission.

It’s important to ask for a breakdown of the costs, such as whether you will be paying the commission or a broker arrangement fee and whether the broker’s mortgage advice or other services are billable.

Other fees

Extra fees that mortgage brokers may charge include:

• Finder fees
• Underwriting fees
• Application fees
• Cancellation fees

It’s worth checking whether a mortgage broker charges any of these extra fees before choosing to use their services.

Final thoughts

We hope this article has cleared up some of your questions about mortgage fees. In most cases, we recommend asking at your initial enquiry or consultation for a breakdown of all the fees you’d be expected to pay.

If you’re looking for a Peterborough-based mortgage broker, Agentis can help. Our mortgage advice is fee-free, and we’ll only charge a broker arrangement fee should you select a mortgage through us.

Even with advisor fees, choosing a good mortgage broker can save you money on your mortgage. As ‘Whole of Market’ brokers, we have access to a broad list of lenders and know our way around the market to give you the best opportunity of securing a great mortgage deal.

Contact us today to speak to our mortgage broker experts.