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Mortgage broker fees

  • 26-08-2009 2:16pm
    #1
    meltdown01
    Closed Accounts Posts: 24 ✭


    Does anyone know what the fee is for a mortgage broker? Is it the case that the banks no longer pay them their fee and therefore the borrower must pay?


Comments

  • #2
    patbrady877
    Closed Accounts Posts: 46 ✭patbrady877


    brokers traditionally got 1% of the loan amount when the volumes of business were high - this is now around 0.5%. Brokers in the UK charge 1% upfront (2k on mortgage of 200k), but irish brokers havent gone that crazy. A fee of 500 is standard, after all the same amount of work goes into a mortgage of 500k, or a mortgage of 100k


  • #3
    meltdown01
    Closed Accounts Posts: 24 ✭meltdown01


    patbrady877 wrote: »
    brokers traditionally got 1% of the loan amount when the volumes of business were high - this is now around 0.5%. Brokers in the UK charge 1% upfront (2k on mortgage of 200k), but irish brokers havent gone that crazy. A fee of 500 is standard, after all the same amount of work goes into a mortgage of 500k, or a mortgage of 100k

    thanks for this! do you happen to know if some banks are still paying the fees?


  • #4
    eman66
    Closed Accounts Posts: 602 ✭✭✭eman66


    Some lenders pay commission to the broker. In this case the broker shouldn't charge you. If the broker is not getting commission from the lender he will charge you. I was charged 0.5%. I had 3 loan offers via a broker EBS: do pay broker commission, AIB: pay broker commission through broker channel only (not via local branch) ICS: pay broker commission. Your broker will tell you who on his panel of lenders will pay him and who will not.

    If the broker sources loans for you and you don't go with any of them there will be a charge. €500 in my case.


  • #5
    CleoD
    Registered Users, Registered Users 2 Posts: 20 ✭CleoD


    eman66 wrote: »
    Some lenders pay commission to the broker. In this case the broker shouldn't charge you.

    Depending on the broker, even if they are still getting commission they can charge you a fee, it will be in their terms and conditions.

    There are certain brokers though that wont charge you a fee, you can find them on google.

    My fee for my mortgage was €1,500, and they got commission asweel, its just a case of shopping around


  • #6
    eman66
    Closed Accounts Posts: 602 ✭✭✭eman66


    Isn't the charging of both sides illegal in some professions! :)


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  • #7
    havana
    Registered Users, Registered Users 2 Posts: 754 ✭✭✭havana


    I was charged €795 and that covered the valuation too. Only had to pay if I drew down the mortgage they sourced for me.


  • #8
    ferga_com
    Closed Accounts Posts: 159 ✭✭ferga_com


    There are no fixed rules for what fee a mortgage broker can charge. Each broker will decide its own policy so you should always ask before using a particular broker.

    You should also ask your broker which lenders they deal with, and what rates of commission each lender offers them. Then when a broker recommends a particular product to you, you should ask why this particular product is more suitable for your needs than those of the other lenders the broker deals with.


  • #9
    eman66
    Closed Accounts Posts: 602 ✭✭✭eman66


    havana wrote: »
    I was charged €795 and that covered the valuation too. Only had to pay if I drew down the mortgage they sourced for me.
    The seems like very good value indeed. Was it a percentage or fixed fee? How much of the 795 was for the valuation? Don't think I got the best value myself. €150 for the valuation. The broker wanted me to have the house valued for every application made. I contacted the valuer myself who told me the one valuation would cover all applications. 0.5% of mortgage (€1100) if the lender didn't pay commision. Only loan offers were from non-commission lenders. €500 survey fee and €500 to broker if we didn't take any of the offers. €1550 solicitors fee on top and it soon adds up.


  • #10
    havana
    Registered Users, Registered Users 2 Posts: 754 ✭✭✭havana


    Now that i think of it it was only €695. €150 for valuation that covered all lenders. It was a fixed fee. They dealt with a good number of lenders. I was very happy with the service- mine was a complicated case and i was afraid no one would be able to source me a mortgage.


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