Do mortgage brokers get paid?

Run a mile from him - go to the lender yourself direct and see what they offer you directly - there are always better offers if you go direct.
 
Most sub prime lenders will charge a fee and commission!

Most prime lenders will charge commission only.

Its difficult to call as we dont know what service this broker is providing for you .i.e. Setting up life policy -- commission. Setting up mortgage -- fee.
 
He set up my mortgage, the company he works for set up my Life assurance.
 
Most Brokers will waive the fee rather then lose a client...
 
There should not be a fee in the first place - all lenders, prime or sub-prime pay commission. Plus he will be getting commission on the life cover.

Sarah

www.rea.ie
 
Sarah W said:
There should not be a fee in the first place - all lenders, prime or sub-prime pay commission. Plus he will be getting commission on the life cover.

Sarah

www.rea.ie
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Yes your correct there should not be a fee....

BUT Sub-prime brokers generally charge a fee because the cases they deal with are usually a fraction of the amount of most prime cases..



Esme

Explain to the broker that your not happy with the fee and you are considering going to another broker,,,, it would be interesting to hear what she/he has to say...
 
Hi Esme,
I was just reading this thread and this broker sounds like mine....
Because we are now not going ahead with his offer he wants to charge us the commission he would have got from the bank... how did you sort this out ?
 
Did you receive a copy of your broker's Terms of Business? If so, it should clearly illustrate the firm's remuneration policy.

Did you agree a fee with the broker in advance of making an application? Or that a fee would be payable in the event of your not proceeding?
 
I changed my broker coming up to sale of house, as it turned out, it wasn't ready until October. I would not recommend this guy to anyone, he's a cowboy!!! (And not just for charging a fee)
 
LDFerguson said:
Did you receive a copy of your broker's Terms of Business? If so, it should clearly illustrate the firm's remuneration policy.

Did you agree a fee with the broker in advance of making an application? Or that a fee would be payable in the event of your not proceeding?
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No, we have never seen something called Terms of Business. We did get a page once in which it is mentioned that "an administration fee will be applied if offer not taken up". We asked him about this a couple of times, but he always evaded the question, and in fairness, we were most of the time thinking of taking up the offer from him until a couple of weeks ago, when we got approval from another lender directly and thought that, having no contract with him we could be free to move. Had we known the "hidden cost" of such a move, we wouldn't have made this choice...
What does "administrative fee" exactly mean and how much would you expect to pay under such a clause ?
 
What does "administrative fee" exactly mean and how much would you expect to pay under such a clause ?
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It would be at the discretion of the broker. It does seem like you were given a written warning in advance.
 
LDFerguson said:
It would be at the discretion of the broker. It does seem like you were given a written warning in advance.
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To be fair and whatever about advance notice, an administration cost should be 50 or 100 euro not 2 or 3 grand lost commission.
 
To be fair and whatever about advance notice, an administration cost should be 50 or 100 euro not 2 or 3 grand lost commission.
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I'd agree that charging the full lost commission would be a bit much. But €50 or €100 would also seem a bit low. The broker would have presumably discussed options with the client, collected the necessary documents for an application, submitted the application (keeping a file copy of everything) and dealt with any queries from the lender prior to loan offer. Even on a (rare) straightforward mortgage application where all correct documents are sent to the broker without omissions and the lender approves immediately without queries, there's still a few hours work.

I don't want to re-open the old "what value does a broker bring" debate here, but just making the point that if a client does go as far as to make application to a lender through a broker and gets approved, there is an amount of work involved by the broker to get to that point. All things being equal, it's probably fairer if the client makes their decision who they're applying through before making the application in the first place.

There may or may not be specifics of this particular transaction that mitigate against this.
 
Should there not be some T&Cs, though, detailing these fees or an indication of how they are calculated ? And is the Consumer Protection Code enforced by the Financial Regulator at all regarding the need of disclosing any charge at the set out ?
 
The Consumer Protection Code is available for download here.
[broken link removed]

If you feel that your broker is in breach of this code, you should point it out to them. If you get no satisfaction, you can certainly take it up with the Financial regulator, who regulates all brokers.

Hope this helps.
 
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