Wondering how a fee free mortgage broker is paid and if its a good idea to use one?
How is a fee free broker paid?
All mortgage brokers, including the ones that charge you a broker fee are paid a commission by the lender. Fee charging brokers are paid by you in addition to this commission. Fee free brokers are happy to work just based on this commission. Using a fee free broker will save you the cost of a broker fee which can be helpful if you are buying a property as you will have other things to pay for such as legal fees and furniture/accessories.
Is the commission added to my mortgage?
No, a fee free broker is providing you with a genuinely free service. The commission paid by the lender is not coming out of your pocket in any way and it is not added or included within your mortgage.
How do I know if my broker is fee free?
Your mortgage broker will let you know this before any advice is provided and will issue a disclosure document to confirm this. If in any doubt just ask your broker.
Will I get a better mortgage by paying a broker fee?
No, regardless if you are paying your broker a fee or not, it will make no difference to the outcome of your mortgage or the product that you take.
Will I get a better service if I pay a broker fee?
No, paying a broker fee has no bearing on the level of service that you will receive. The best way to establish if your broker provides a good service is to ask for evidence of online reviews.
Does The Mortgage Plan charge a broker fee?
No, we are a fee free broker, delivering expert advice without the fees. We use cutting edge technology, coupled with experienced, fully qualified advisers to make the process smooth, efficient and responsive. Our business thrives on client recommendations. So, if you’re happy with our service, we would much prefer that you refer a friend than charge you a fee! This is how we work to keep costs down whilst delivering a top class service.
What are the disadvantages of using a fee free broker?
There is no disadvantage at all of using a fee free broker.
What are the advantages of using a fee free broker?
The advantage is that it saves you the cost of paying a broker fee and receiving a professional service for free. If you are buying a property then this means that you have more money to spend towards legal costs and buying items for your new home.
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