I have always believed in being like an open book with our fees. Of course we mention fees at the bottom of our page, we have to do that for regulatory purposes but that only gives an estimate.
Whenever I speak to a potential customer on the phone I try to bring it up on every call before getting too far down the line.
What do Mortgage Brokers charge?
It really does vary. I have seen mortgage brokers who do not charge and I have seen brokers charge £2,000 and beyond.
There are reasons why the figure differs so much, things like:
- the size of the business,
- their experience,
- whether or not they specialise.
When they charge can also vary. Some will charge at the outset, others on application, on offer of a mortgage or on completion.
What are Mortgage Success broker fees?
Up until earlier this years, our fees were a little flexible. We had some guidelines or “maximums” dependent on certain circumstances but could lower them if we wanted. However the FCA brought out some additional regulation on fees to try to make it fairer for customers.
There is a statement at the bottom of our pages which says we charge a fee of up to £1,495 but we estimate that it will be £549. This statement again is down to regulation, we have to tell people what our maximum fees are. But that can be misleading so we have also included an average of all of our fees from (I think) 2019. 2023 has been closer to £300! However this year we have done more product transfers and less purchases than usual.
Previously we had 3 fees – No or Minor adverse/Medium Adverse/Heavy Adverse, the fees for those were upto £750/£999/£1,495.
However due to the changes brought in by the FCA we had to break this down more. In fairness, this does represent what we have always charged more accurately but the table is much more complex.
| Mortgage Type | Customer Type | Broker fee |
| Residential | Standard | £500 |
| Standard (under £100k) | £750 | |
| Complex | £750 | |
| Adverse under 3 years old | £999 | |
| Adverse within the 3 years (under £100k) | £1,250 | |
| Adverse under 3 years with insolvency/DMP | £1,495 | |
| Adverse over 3 years old | £999 | |
| BTL | Standard | £599 |
| Complex (Ltd Co, holiday let, HMO) | £750 | |
| Adverse over 3 years old | £999 | |
| Adverse under 3 years old | £1,495 | |
| Remortgage or Product Transfer Residential & BTL | Remortgage existing customer (no adverse) | £299 |
| Product Transfer | £0 |
There may be some movement on the above. Its not something you need to ask for (although no harm eh!?). A good example here is if we have someone with a satisfied £12 default from 2 years ago, strictly speaking that would be a £999 fee. However if we think we can get it through without using an adverse lender we would lower the fee.
The reason we have so many different fees was because of the changes the FCA brought in. To stick to the 3 different fees would have meant some of our customers being charged more than we feel is fair. We have tried to re-jig it in a way that ensures nobody is any worse off under the new fee structure.
When do we charge our Broker fee?
For 99% of people we charge on full offer of a mortgage. The other 1% are usually for people looking to remortgage and pull money out of their property.
The reason we charge on offer is because at that point we have done 99% of our job. You came to us for a mortgage, you have your mortgage. The only bit of our job that is left is to be on hand should you have a wobble or any questions along the way.
If the property falls through after you have paid we would usually transfer the mortgage to a new property free of charge. Ultimately we want to work with our customers for the long term so we are not looking to just earn a quick buck and be done. We want you to call us throughout the process or even 6-12 months after completion if you have any questions.
What do you get for your Mortgage Broker fee?
To some extent this is dependent on you. You can have as much or as little involvement in the process as you like. Some people prefer to give us all of their documents and leave us to get on with it, others want to be involved at every step. We work for you, so what you want goes.
But in a list form, the typical things we offer are:
- Deal with the estate agents once your offer has been accepted.
- Discuss what you want/your options to help work out what you want from your mortgage.
- Find you the best mortgage we can and ensure you will get your mortgage offer.
- We will do some bits for your solicitor if you use our solicitor (we can certify/send ID for example).
- Make your application and deal with the underwriters (although I would like to think that one is obvious).
- Deal with any problems that arise. We try to do this without involving you in it to save you any stress but that is not always possible.
- Be on hand via phone/email/whatsapp should you need us. And that goes for even after completion has taken place. Once you are our customer, you are our customer forever even if you decide to never use us again. Pick our brains! Thats what we are here for.
Summary
So there you go, a full overview of the fees we charge, when we charge, why we charge and what you get for the fee. Open and upfront!
But I think for most the fee is for peace of mind and an easy life.
If you have any questions, please get in touch we are more than happy to go through it with you.