Do all mortgage brokers charge fees? Find out now!
Not all mortgage brokers charge a fee. At Beechwood, we take pride in offering a transparent and fair approach to our fees. Continue reading to learn more about mortgage broker fees, the expected costs, and when you may need to settle up with your broker.
So, why choose Beechwood Mortgages?
TRUSTED ADVICE
We’ve been making things simple for clients in Berkshire and surrounding counties since 2001.
COMPARE & SAVE
We have full market access, so you can compare mortgage and insurance rates and other products with ease.
ONE POINT OF CONTACT
Avoid confusion with one dedicated broker working with you throughout the entire process.
PERSONALISED SERVICE
Receive expert recommendations based on your circumstances. We take care of all your paperwork too.
How are mortgage brokers paid?
Mortgage brokers are typically paid a fee by the lender, known as the Procuration Fee. This fee is usually a percentage of the borrowed amount, often around 0.35% of the mortgage. For instance, if you borrow £250,000, the broker's fee in this example will be £875.
​
It's important to note that you, as the borrower, do not pay this fee directly. Instead, the lender compensates the broker, or at least a significant portion of it.
​
Additionally, some mortgage brokers may charge an additional fee, regardless of the loan amount. That's why it's crucial to do your research before choosing a broker. Here are a few instances where such fees may apply:
​
1. Upfront admin / application fee
2. Fee upon receiving your mortgage offer or completing the transaction
3. Possibly both!
Will You Need To Pay Us A Fee?
As part of our commitment to transparency, a fee may be applicable if you are borrowing less than £275,000. Please refer to our fee table below for full details.
Our team will promptly advise you on this matter and, providing you are happy to move forward, assist you throughout the entire mortgage application process.
​
And the best part? If we can't secure a mortgage offer for you, there are no fees to pay as we never charge any upfront application or admin fees.
We may need to charge a fee if:
-
You are looking to borrow less than £275,000
​
-
Your situation/requirements are complex, therefore demanding more time for us to thoroughly research, place and arrange your mortgage
Our fee will never be more than 2.5% of your mortgage and is payable when we secure you a mortgage offer. When we need to charge a fee which is based solely on the size of your mortgage, as a guide you can expect this to be:
​
50-100k - £700 - £1250
100-200k - £350 - £700
200-275k - no more than £350
>275k - no fee to pay
Are you looking to borrow more than £275,000? If so, our aim is to operate without adding to your costs.
Unsure about charges and costs?
Need immediate assistance? Contact us now via our Live Chat.
Don't forget to explore all your options before making a decision and avoid paying exorbitant broker fees!
​