How Much Does a Mortgage Broker Cost?

How Much Does A Mortgage Broker Cost?

Working with a mortgage broker can provide you with many benefits. They are there to understand your circumstances and find you the best mortgage deal. Many people seek help from independent mortgage advisors, as they have the relevant contacts and remain unbiased when offering the relevant deals.

Having the luxury of an experienced mortgage broker on your side and doing the groundwork for you will cost a fee for their expertise and time, and in return, you will have the right lenders who will find the appropriate deals for you.

To answer the question of how much a mortgage broker fee is, JG Mortgage Services Limited bring you this blog, so you can manage your expectations before you sign up with a broker and so you know the costs involved in the entire home-buying process.

 

How Much Does a Mortgage Broker Cost in the UK?

The amount a mortgage broker charges in the UK depends on the size of the loan you are taking out. On average, mortgage brokers usually get around 0.3% – 0.4% of your loan amount, and sometimes up to 1%. This is a commission that is paid once the mortgage process has been completed.

In some cases, a broker will charge a lower amount if you are applying for a larger mortgage. You can expect the fees mortgage brokers receive to be in the range of £400- £500.

Some mortgage brokers will charge a fee and a commission fee on top, while others have a fixed fee which can be useful to know the upfront fee. With all of this in mind, it is important to find this out in advance before you seek help.

You should get a written confirmation of the fees involved from your broker to refer back to for your own notes. It will also be handy to find out and get in writing what happens in the circumstances if the mortgage deal falls through, as there should be no fee to pay with most brokers.

 

Is it Worth Paying for a Mortgage Broker?

In short, yes – a mortgage broker can be very worthwhile. At first, it might seem like another expense, but investing in a mortgage broker means you can spend less money over the long term as they will find you the best deal.

This is something to keep in mind when weighing up whether the costs will be worth it, as the fees should be worth it if you end up paying less on your mortgage in the long run.

Brokers can provide you with more deals from the right lenders than you would not have access to without them. They know where to look to find you the best deal to suit your needs and circumstances.

Mortgage brokers will have established professional relationships with various lenders, who trust them to find the right clients for them that they will be able to make an offer for, and will be willing to offer them their best deals. If you want mortgage advice from an expert without the worry of them trying to sell you something, then a mortgage broker is definitely a worthwhile investment for you.

This is because they will remain unbiased throughout helping you, as they do not work for a particular firm and are trying to sell you a certain loan for their commission from the lender or gains or company targets. A mortgage broker’s aim is to find you the very best mortgage deals that lenders have to offer you. They have your best interests at heart.

 

Can I Go to My Bank For a Mortgage Deal?

You can choose to visit your bank for a mortgage loan, however, if you are looking to seek out the most competitive rates for your situation and budget etc, your bank will be limited on what they can offer you. In which case it will be better to look further afield.

 

Can I Search Independently for a Mortgage Deal?

The answer is yes, you can search independently for a mortgage deal. It is not impossible to do it on your own, and there is no harm in checking what’s out there for yourself.

It will be a lot more challenging to go mortgage searching on your own, as well as being very time-consuming. This is why seeking professional advice and support on this is advised.

Mortgage brokers know exactly what they are doing and all the best places to search for the best deal for you. They are on your side, they take the time to get to you and your circumstances, as there are many factors that can affect finding the right mortgage lender for you and everyone’s situation will be different.

 

Why Should You Use a Mortgage Broker?

We believe that using a mortgage broker is the best way to ensure you are securing the best possible deal. Find out more why with these reasons down below:

  • The right deals can be hard to find. Brokers are likely to know where to find the best deals on the mortgage market and what mortgage providers will be willing to offer you a deal.
  • Any risks your mortgage broker will be able to warn you of.
  • Mortgage brokers understand lenders’ criteria – even in the most challenging cases, e.g. bad credit history, or needing a mortgage loan fast, mortgage brokers will understand which lenders are open to certain conditions.
  • Having access to someone who understands the lender’s criteria is important, as it increases your chances of becoming accepted. This will not only add more time to the entire process, but it will also leave a hard search on your report, and the record of this search may then have an impact on your credit score.
  • Mortgage brokers also have access to information that can be otherwise difficult to find.
 

How Do I Find a Good Mortgage Broker?

To find a good mortgage broker, do your research! Look for those that have a good reputation through customer reviews. This is often a good indication of customer satisfaction and how well the brokerage handles the process from start to finish.

 

Speak to JG Mortgage Services Limited for Our Broker Services

Remember to check the mortgage brokers’ charges involved with your mortgage broker before you begin the process with them, it is also worth asking if they are tied to any particular mortgage lenders or if they have access to many. Overall, with the right mortgage broker, we are sure they will find you a good deal.

JG Mortgage Services Limited is an independent expert mortgage brokerage, we work with customers nationwide and have been successful in finding many people their perfect mortgage deal.

We deal with all third parties ourselves including lenders, estate agents, solicitors and accountants, providing a full five-star service for our valued clients. Whether you are a first-time buyer, remortgaging your home, or looking for a buy-to-let mortgage, whatever your circumstances, we have the knowledge and expertise to be able to help you.

To find out more about our fees, you can contact us, and we will be happy to provide all the information you need about our services. You can call us at 01244 738422 or email info@jg-mortgage.com to get in touch.