When it comes to getting a mortgage in Norwich, many people turn to mortgage brokers to help them find a suitable deal and navigate the complex mortgage market. However, not all mortgage brokers operate in the same way, and one key distinction is whether they charge fees or offer their services for free. In this blog post, we’ll explore the differences between fee free vs fee charging mortgage brokers, so you can make an informed decision about which type of broker is right for you.
What are fee-charging mortgage brokers?
Fee-charging mortgage brokers are brokers who charge a fee for their services. This fee can vary depending on the broker, this can often be a set fee per transaction or a % of the mortgage amount.
The advantage of using a fee-charging mortgage broker is they can take on fewer clients each month to earn a reasonable living, making the mortgage broker more freely available and allowing them more time with each client.
However, it’s important to be aware that not all fee-charging brokers are created equal. Some may charge high fees but not provide much additional value or offer poor customer service. It’s essential to do your research and choose a reputable broker with a good track record and positive customer reviews.
What are fee-free mortgage brokers?
Fee-free mortgage brokers, as the name suggests, do not charge a fee for their services. Instead, they rely purely on the commission they receive from the lender when they take out a mortgage. This commission is typically around 0.35% of the mortgage amount.
The main advantage of using a fee-free mortgage broker is that it won’t cost you anything upfront, and you can access their services without having to pay a fee. However, it’s important to note that fee-free brokers may either have to take on more clients to earn a reasonable living, giving you less opportunity to speak to your broker or could result in them focusing on easier cases or large ticket value mortgages.
fee free vs fee charging mortgage brokers
Ultimately, whether you choose a fee free vs fee charging mortgage broker will depend on your individual circumstances and preferences. Both options will have their pros and cons to them and therefore it’s not worth purely relying on price alone. It’s important to do your research and choose a reputable broker with a good track record, regardless of whether they charge a fee or not. Look for customer reviews and ask for recommendations from friends or family members who have used a mortgage broker before. With the right broker by your side, you can find the best mortgage deal to suit your needs and budget.