euromortgage
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I'm sure most brokers would probably structure it differently as suits their circumstances but basically it would be that the broker would have to receive a certain percentage of the mortgage whether this is made up from commission from the banks or a form of both commission + client supplement. As always this should not effect the brokers service levels to act independent and ensure the client is getting the best advice possible .
Why should the fee be percentage based ? That is the most ridiculous pricing structure ever invented. Why should a broker get paid more for doing a similar amount of work on a 200k mortgage as opposed to a 2 million one ?
Same goes for solicitors - basing conveyancing fees on house price is equally as ridiculous.
Currently banks commission structures are percentage based. But what I should have said is the percentage structure would probably be linked to pricing bands, i.e. the percentage decreases the higher the mortgage amount but there has to be a minimum base level which covers the cost of doing business. Also your assuming there is the same amount of work involved in all mortgage cases. The more money your looking for, the more diligent the banks are (more risk to them) in their requests for information, which creates more work for the broker in getting the correct info from the client and preparing it for the bank
With the announcement this week of banks slashing their commissions to brokers, I'd like to get peoples opinions on their willingness to pay brokers a fee to supplement their costs. Would you pay a broker fee for a standard mortgage?
Much simpler and more transparent to just quote flat fees per pricing band surely?
As an FTB last year, I used a broker to check out mortgages for me. It was "free" and they ended up getting me a good rate (one that I could have got myself but it cut out all the individual applications to different banks to find it). I think if brokers have to charge, they should offer a flat rate charge of no more than 100euro. Well that's the max I'd pay for this service regardless of property value.
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