Nikko2

When I was in the estate agents arranging my mortage I wrote three cheques.

One for an Arrangement Fee
One for a survey
One was a client fee???

Whats this for apparently it isnt cashed till I move in.

Spoke to a friend who recently bought a house and he hasnt doesnt seem to have paid one of these.


[Edited by Nikko2 - 7/4/2003 9:39:13 AM]

Nimbus

If you are are getting your morgate through an estate agent, then i assume you are using their mortgage broker to find the best deal for you from all the lenders? If so, then I think, thats the fee you pay to the estate agent for that service (this is on top of the arrangement fee that the lender charges).

I think it sucks really. We went to B+B and they wanted £600 for a couple of hours work. We ended up going to our current lender and getting a better deal + the valuation free and £300 cashback too

Nikko2

I used B+B didnt realise they charged for finding you a mortage. Thought they would get there money off the mortage provider for introducing business. All they do is enter your details onto charcols website...

Nikko2

You live and learn

Stueyb

I went to an independant mortgae advisor and it cost me nothing and got a damn good deal too. The advisor got the commision from the lender.

Nimbus

Nikko,

Excatly. They wanted to charge us AND get an introduction fee from the lender...

Nikko2

Just spotted this on there website frontpage in the small text at the bottom.

No broker fee payable on personal loans or mortgages if bought online. Otherwise, a broker fee for mortgages of 0.4% of the mortgage, minimum charge £200, applies.

This adds up to the exact amount of my client fee.

Not feeling so annoyed now as the rate I received is slightly better than I could get online through the same lender. And he did steer me away form having to fork out over a grand on a MIG.

Still think they are cheeky though.

Diesel

My IFA got about £800 for setting up my mortgage FROM THE LENDER - he would have asked me for a top up fee if the comission wasnt enough to cover his costs. He was very clear and upfront about it which was cool (and essential for trust). I'd be a bit p'd off to have to pay an estate agent broker this without any warning - esp as it includes no extras or financial reviews (as I had) and it involves the term 'estate-agent' shudder

RussP

Tell em to get stuffed and take your business to an IFA.

Russ (estate agent of 10 years... )

Nikko2

Too late now. I have already spent more on surveys and searches than I would get back with the client fee.

The annoying thing is it states on B+B's website that they dont charge this if you apply online.

Didnt spot it till today.

Nimbus

Didn't the advisor explaine the charge to you? Ours did, although he was trying to be a little vauge about what it was...

Witchfinder

I'd query it, and ask why the fee wasn't made clear to you up front. Unfortunately, mortgages aren't currently regulated by the Financial Services Authority, so I don't think there's a lot you can do.