A Mortgage Broker will usually see you free initially and then charge either an hourly fee – from £50 to £150 (typically £75) plus VAT – or you can agree on them taking a commission.
By law, all authorised Mortgage Brokers must explain their charging policy on your first meeting.
This will be set out in an Initial Disclosure Document which you should be given. It must state what you will have to pay for the service and explains whether the firm will refund a fee in any circumstances.
The commission normally comes from the company providing the mortgage that the Mortgage Broker has recommended to you.
If you pay by commission, the Mortgage Broker has to reveal what it is.
When recommending a mortgage, the Mortgage Broker has to outline why they are recommending this – using the Key Facts Illustration (KFI).
This KFI document includes details on the recommended mortgage and how much the broker’s fee or any commission will be.