I was recently asked this question on my Facebook page – what is the difference between those brokers what want to charge a fee and those that dont?
The mortgage advice I give to all first time buyers is to use a “no fees” broker, unless you feel that your mortgage application is going to be complicated or difficult. For example, if you have good credit then you should’nt have any problems getting a good deal with a “no fees” mortgage broker with any of the mainstream lenders.
However, the mortgage broker who is charging no fee will only refer lenders to you who pay a commission, and rightly so they need to earn an income for their work!
This means however, that if you choose to pay for advice – perhaps in the region of £200 – £700 depending on your mortgage, then you will have the choice of direct only mortgage lenders, and wider choice overall.
What do I do if I have bad credit?
This may be an option if you have a difficult credit history and the mortgage broker will need to provide above and beyound mortgage advice to get you the right mortgage deal for you. Your mortgage broker may need to go to several lenders in order to find a mortgage lender willing to accept your application, this off course would take up a lot more time and may require a advisor fee.