Cashback Remortgages · Advice costs
How Much Does a Mortgage Broker Cost?
Mortgage brokers use different charging models. Some charge a fixed fee, some a percentage, and some do not charge the customer a broker fee. Many receive lender commission. The answer for your case should be clear before you instruct the service.
Different fee models
A fixed fee is a stated amount for the agreed service. A percentage fee changes with the loan amount. A broker may instead be remunerated by lender commission, or use both a client charge and commission. There is no single fee that applies across the industry.
For arithmetic only, a fee of 0.5% on a £200,000 loan would be £1,000. This is not Cashback Remortgages' fee or a market average. Always use the firm's actual written terms.
When could a fee become payable?
Ask whether the fee is payable at an initial appointment, application, offer, completion or another agreed stage. Find out what happens if the lender declines, you withdraw, the property transaction falls through or you change product.
Do not assume a fee is refundable or that a fee paid for one application covers all later work. If there are circumstances in which further charges apply, ask for them to be explained before committing.
Separate the broker fee from mortgage costs
Product, booking, valuation, survey and legal fees may still apply even when the broker charges nothing. Your existing mortgage might also carry an early repayment or exit charge. A fee added to the loan can accrue interest.
When comparing advice, consider service and available range alongside the charge. A lower advice fee does not establish that the eventual product is cheaper over your chosen period.
Cashback Remortgages' service
Our mortgage advice is free — there is no broker fee for our service; lender remuneration is separate. Ask for the disclosure for the specific service you need, including any purchase or specialist case, before instructing us.
Cashback eligibility and timing are also separate from the fee disclosure. An illustrated cashback amount is not a refund guarantee or proof that the mortgage has no costs.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the FCA.
Discuss the next step for your mortgage
Understand your options before you make a decision.