I'm looking at buying my first house and was wondering how much is a reasonable/fair arrangement fee to pay a mortgage broker?

Do they all charge the same?

Asked by matt.t.marshall

1 Answer

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Answered by Arthur Wang
Mortgage brokers generate income in two ways.

(1) Commission - mortgage lenders pay brokers a fee ranging from 0.25% to 1% as a procuration fee. So for a typical mortgage of £200,000, brokers can earn £500 to £2,000 for helping someone secure a mortgage

(2) Arrangement fees - brokers may also charge you a fee directly. Based on my experience, you should pay no more than 1%. If they try to charge more, I would encourage you to get a second opinion. Also, I would make sure they don't charge you a fee until the mortgage is completed.

There are several guides on the site that you should read. Checkout www.simplyfinance.co.uk/mortgage/first-time-buyer.html | 11.04.10 @ 16:15
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