How Fee Free Mortgage Advice Works
Your home may be repossessed if you do not keep up repayments on your mortgage.
The biggest question we get here at Search Mortgage Solutions is how can we afford to give you mortgage advice when we don’t charge a fee? Lots of people think that there must be a catch, but to show that this isn’t the case, we’re going to explain exactly how fee free mortgage advice works.
Many mortgage brokers do charge their clients a fee for arranging a mortgage and are adamant that they will continue to do so. The argument is that, because of tighter regulations, arranging a mortgage is much more time consuming, so they need to charge a fee for their work. However, the truth is that these brokers are actually getting paid twice: once by charging a fee to you of up to 1.5% of your loan amount and again through commission which they receive from the lender (known as a procurement fee).
When we started the business ten years ago, our objectives were clear… to always put the client first. And based on the fact that we are a “whole of market mortgage broker”, we wanted to lead the way with being a fee-free broker too. Our business model was set up to allow this and, as a result, we save our clients several hundreds of pounds of initial set up fees which are unnecessary, instead taking our payment in the form of commission from the lenders.
Brokers who do charge a fee argue that this allows them to give a much better service and that they’ll go the extra mile, but surely this can be questioned as they will be paid a fee by the client irrespective of the mortgage being approved and completed. It’s much more the case that, as a fee-free broker, you go that extra, extra mile to ensure that you source your clients a correct deal to suit their circumstances and the case completes or there is no fee at all paid to them for all the completed work.
Most potential mortgage clients are not aware that there are fee-free, whole of market mortgage brokers and that they can get the same, if not better, client service from a fee-free whole of market mortgage broker while saving hundreds of pounds both initially and at the point of when the initial rate finishes and is up for a review. During the lifetime of a mortgage, there could be twelve initial rate reviews which could save a client an average of nearly £4,000 on unnecessary costs, simply by using and sourcing a fee-free mortgage broker such as Search Mortgage Solutions.
To find out more about how we can help you to secure your dream home, completely fee-free, be sure to give us a call on 0800 756 7794, request a call back, or pop into one of our offices in either Manchester, Leeds, London, Birmingham, Liverpool or Bristol.