Bad Credit Mortgage Broker Fees
How much you should pay a broker can be a very confusing issue when you have a bad credit history. Due to the complexity of finding a suitable mortgage most mortgage brokers will charge a fee if the client has had credit problems in the past.
Unlike a client with clean credit where the broker can simply look to place you with a lender that has the best deals available, if you have some credit issues it becomes a much more complicated case and will take up a lot more of the mortgage brokers time and therefore they are likely to charge more for such a service.
In addition to the extra time needed to help a customer, it is vital that the broker is a specialist within the adverse credit mortgage market. Adverse lenders have very specialised criteria when it comes what bad credit they will accept. Whilst one might accept a CCJ over 3 months old others will need it to be at least 12 months, it is therefore essential that the broker you choose is a specialist in helping customers with previous credit issues to ensure you are getting the best deals possible.
Broker fees vary a lot across the market ranging from low fixed fees to a percentage charge of the loan up to 5% of the loan amount. Some brokers may insist on upfront payment whilst many brokers will allow payment on completion only.
Personally, I would be very cautious paying any broker an upfront fee that is not refundable if the mortgage does not complete. If the mortgage is declined you may not get back any fees that have already been paid.
At Plus Financial solutions, we do not believe you should be paying any upfront fees to a broker, therefore we never charge any upfront fees. Our broker fee just is 1% of the total loan amount subject to a minimum of £1495.
Regardless of your credit history, we would love to help you find your next mortgage, contact us on 01604 328 091 or email email@example.com to find out how much you can borrow today.