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  #1  
Old 01-12-2004, 03:23 AM
rooneyp1976
 
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Default list of mortgage brokers offering commission refund?

hi folks,

doesn't anyone have a list of mortgage brokers that offer commission back on a sale. I know of the following :

ferga.com
rea.ie
moving.ie

I had a chat to rea but I wasn't too impressed, for a house valued 330k they wanted to tie up over 4200 of our money for 3 months. After this they would refund us this 3k, so this means rea's solicitor would cost 1200 (inc vat). I don't get this!!! I can go out tomorrow and get a solicitor for 850-950 (before vat).

thanks, Paul
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  #2  
Old 01-12-2004, 05:51 PM
Once Bitten
 
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Default another one for the list

I don't have a list, but if you arrange your solicitor through Home Buy Home Sell, the normal solicitor price is 999 + VAT + Outlay.

If you then arrange your finance with mortgage brokers Prima Finance, saying you were referred by Home Buy Home Sell, you will get your solicitor for a house purchase for 499 + VAT + Outlay. (i.e. they refund 500 out of their mortgage commission).

I am dealing with them at the minute (PrimaFinance that is) and find them very professional, efficient, and they got me a good rate.
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  #3  
Old 01-12-2004, 06:49 PM
Sarah Wellband
 
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Default Re: another one for the list

Hi Paul,

I'm not sure if the REA package was explained to you properly. I'm presuming that you were/are looking for the maximum 92% mortgage on a house costing 330,000 or 303,600. If this is the case REA would charge a fee of 3495 + VAT (4228.95). For this you would get;

1. Impartial expert advice on the best mortgage for your circumstances and full administration of the mortgage and mortgage protection from initial enquiry through to cheque issue.
2. Payment of the professional fee of the REA panel solicitor to handle the legal conveyancing (legal outlays - Stamp duty, Land registry, etc are payable seperately).
3. Disclosure and full refund of the commission paid to REA; in the vast majority of cases this is 1% of the loan amount or 3036.

Yes, you are correct in saying that the fee is payable on completion and the refund is sent to you within 90 days of completion but at a net cost of 986 + VAT we think this represents great value for money.

Kind regards,

Sarah

www.rea.ie
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  #4  
Old 01-12-2004, 09:53 PM
N0elC
 
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Default Re: another one for the list

You'd probably be better off going straight to your lender and asking them for a discount and or a refund of your legal fees. For a mortgage of this size, you'll certainly have some very strong bargaining power on your side. This way, you'll not have to tie up your cash, and you'll cut out dealing with a middle man.

Don't forget that any customer rebate in excess of fees paid to any of these brokers is also now taxed at your top rate of income tax.
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  #5  
Old 01-12-2004, 10:00 PM
oysterman
 
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Default Re: another one for the list

NoelC,

Sure about the tax treatment? How is it collected? Where on a tax return would one fill it in?

It seems bizarre and unjust - has anybody paid it?
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  #6  
Old 01-12-2004, 10:06 PM
ClubMan ClubMan is offline
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Default Re: another one for the list

Surely if tax did apply then it would be gift tax?
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  #7  
Old 01-12-2004, 10:12 PM
Sarah Wellband
 
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Default Re: another one for the list

"Don't forget that any customer rebate in excess of fees paid to any of these brokers is also now taxed at your top rate of income tax"

Because of the way the package is structured there would not be a rebate in excess of the fee; and, no, to the best of my knowledge, in the nearly nine years we've been offering this package no-one has paid tax on the refund.

Kind regards,

Sarah

www.rea.ie
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  #8  
Old 01-12-2004, 10:19 PM
Once Bitten
 
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Default Re: another one for the list

Quote:
You'd probably be better off going straight to your lender ... This way, you'll not have to tie up your cash, and you'll cut out dealing with a middle man.
With Prima Finance, you pay nothing up front. Their only fee is the commission from the lender. The lender deals with this.

In relation to cutting out the middle man ... if it is hassle you are trying to cut out, then going with the broker is the way to go. Let the 'middle man' deal with all the lenders, but by all means satisfy yourself they have found a good deal by consulting these pages for reference.

If it is costs you are trying to cut out, try beating a tracker of ECB + 0.95% (aka 2.95%) on a 73% LTV. And then there's the conveyancing for 499++
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  #9  
Old 02-12-2004, 01:37 AM
rooneyp1976
 
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Default news from moving.ie

A guy called Declan Clare from moving.ie got back to me today. He allowed me to choose a mortgage provider (PTSB tracker), and confirmed that the only money to pay is 675 + vat + outlays. (This of course includes a solicitor).

You can find more details on moving.ie
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  #10  
Old 02-12-2004, 05:09 PM
LASHEERO
 
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Default Re: news from moving.ie

I wouldn't recommend REA. I have just used them recently and wasn't happy. They charge you what they call a homebuyer package including the Solicitor fee and it comes to the approximate figure Sarah was talking about. The Solicitor fee is cheap but you have obviously found cheaper. They refund you the 1% commision on your mortgage from the lending institution in 3 months time. As far as I'm aware for some of this time it is sitting in their bank account. I was told to ring them to remind them in a couple of months!

You are better off going directly to a lending institution - shop around. With a broker you still have to do all of the form filling and I felt that they didn't do anything I couldn't do myself. A mistake was made by REA on the application which delayed the cheque issue a week. Stressful. At least if you do it yourself you can move things along quickly and only blame yourself if anything goes wrong.
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  #11  
Old 02-12-2004, 07:22 PM
ClubMan ClubMan is offline
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Default Re: news from moving.ie

I personally would be more inclined to go the direct route rather than through a broker too but it should be pointed out that the positive feedback on REA to date has far outweighed the negative feedback in case anybody was wondering.
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  #12  
Old 02-12-2004, 10:41 PM
MoodyToo
 
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Default Re: another one for the list

I've just used Primafinance and found them to be excellent. I had already decided I wanted a BOI tracker mortgage but instead of approaching BOI directly I got my mortgage through Primafinance so that I could avail of the 499 + VAT + Outlays offer. As a not too experienced house buyer (2nd house) it was good to be able to ring up and ask them to check my file to ensure everything was in place, or get advice on what was left to do. This was something I couldn't do the last time I went direct to BOI as the bank manager proved to be disorganised and delays resulted. Also this time there were complications with the seller which resulted in the solicitor having to do alot of extra work, it wasn't at all a straightforward closing. I fully expected this to be reflected in the bill but in the end it remained at 499.
Would recommend them.
MoodyToo.
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  #13  
Old 03-12-2004, 01:27 AM
rooneyp1976
 
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Default primafinance

Jesus, it keeps getting better. 499 is a very handsome figure.
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