No broker fees and why is this important

What are broker fees?

Broker fees are paid by the client (you) to the broker for work done to secure a mortgage.

The fees charged might be a flat fee or a percentage of the mortgage loan. This fee might be paid at the time of application. Or it may be paid later on when the mortgage offer is issued or possibly when the mortgage completes. 

The fee could be paid in two parts. An initial payment with the balance paid at a later date

Some brokers might offer an initial 'free' consultation with a fee paid later on the process.

Mortgages Direct do NOT charge ANY fees providing your mortgage is at least £100k.

Why do mortgage brokers charge professional fees?

There are several reasons why mortgage brokers will charge professional fees.

A common reason why is linked to how you made contact with your broker/advisor

Quite often brokers are referred by an estate agent or indeed the estate agent may have their own ‘in house’ broker. 

The estate agent will want paying for the lead and these leads are not cheap.

You may have found your adviser through ‘Unbiased’. Unbiased are a commercial organisation that charges the advisor a lot of money for each lead. These fees have to be paid somehow and are likely to be passed on to the client.

The time invested in a new enquiry is significant. The background to any application needs to be understood and information regarding income and outgoings will need to be checked and verified. 

Where are the deposit funds coming from? Have you allowed for payment of stamp duty and legal fees? 

There are quite a number of options to do with the mortgage that need to be discussed

Lenders will have their own requirements, and these will need to be checked

Next the financial advisor will handle the mortgage application together with any post application enquiries.

The mortgage offer is issued. 

What then follows is several weeks of legal enquiries. 

The whole process can take typically two months or longer to complete  

During this process, the advisor needs to be paid. It is quite reasonable for a firm to ask you to pay these fees.

Mortgages Direct uk do NOT use esgents or Unbiased to source our leads. Our clients find us on the internet or are recommended by another client.

How can Mortgages Direct uk offer this service with No Broker fee

How does Mortgages Direct uk get paid?

We receive a fee from mortgage lenders for mortgages that successfully complete. We only get paid if your mortgage completes. Our success is then deeply linked to your success. It is in our interests for your mortgage to complete!

Do all mortgage advisors get paid by the lender?

Yes, the amounts paid will be very similar. The difference is that some firms choose to charge a professional fee IN ADDITION to the lender fee

Is there a catch with No Broker fee?

No, there is no catch. 

Just good business. 

We have streamlined the process. You will need to fill in a fact-find online. You will need to upload your supporting documents. But you will have support when you need it.

There is no contract to sign. If you are at all unhappy you can just walk away 

Are ALL mortgage brokers fee free

No, this is an important thing to understand. Some brokers may offer an initial free consultation but there may be a broker fee or professional fee to pay later on. 

We make it very clear that we do not charge a broker fee providing your mortgage is at least £100k.

Why are no broker fees important to me?

Broker fees are an upfront fee you may need to budget for

If you spend your money on broker fees then you may not be able to put down a larger deposit.

Which may affect the rate you are offered.

Clearly, if you have the choice between paying a fee and not paying a fee, then not paying a fee should be chosen!

Mortgages Direct uk do not charge a broker fee providing your mortgage is at least £100k.

Ok I’m interested, what happens next

Please fill in our Mortgage enquiry form and let's make a start.