Morgage broker fees

[Sunshine2015]

I am considering equity release on my home to free money up , my research tells me I should go to pepper my dilemma is do I use a broker or go direct I contacted a broker today and they advised they charge 260 euro to do the equity release application not sure if I should pay a broker given they will most likely get commission from the lender also

 

[RedOnion]

Hi, for 260 I wouldn't expect them to do any more than fill in a few forms and collate your documents together. You can probably do that. Or ask the broker if they'll refund it if you draw down as they'll get commission.

Pepper will charge you an arrangement fee as well.
It'd be worth checking with them if you meet their criteria - while pepper are flexible, they're very selective in locations they will lend.

 

[LDFerguson]

Pepper charge more than other banks. Are you sure that no other bank will do what you want? If you go to a broker, the broker should assess your circumstances before applying anywhere and recommend the most suitable lender to you, which may or may not be Pepper. Additionally, if your application is not straightforward a broker may be able to add the benefit of experience in presenting your application to improve your chances of being approved. That's what you'd be paying a fee for. On the other hand, if you're 100% sure that Pepper are the best / only lender for you and that your application will be accepted by Pepper, then I'd second what RedOnion suggests and propose to the broker that they'll refund the €260 out of commission when you draw down.

 

[RedOnion]

I should note, I made the assumption, partially based on some previous posts, that you've already decided that Pepper is best option for your circumstances. Of course I'd expect a broker to analyse and find the best offer for you.

It might be worthwhile talking to somebody about your overall financial position, and whether an equity release is a route you should even be considering. But that requires a lot more information.