Mortgage Brokers fees

[TheRebelRam]

Quick question, how do mortgage brokers get paid?
Do they get a percentage of the interest on your mortgage from the bank?
Do they get a lump sum based on the size and term of the mortgage?
Are they paid differently somehow?
My mortgage broker seems to be incouraging me to 'take a few bob extra' for this and that. Is it for his benifit or for mine?????

 

[Sarah W]

Brokers get paid (up to) 1% of the mortgage amount borrowed - the term is irrelevant and they do not get a percentage of the interest. You should not borrow more than you need to although I can't see that the extra commission on "a few bob extra" is going to make much difference to the broker (unless you are talking €10,000s).

Sarah

www.rea.ie

 

[ClubMan]

My mortgage broker seems to be incouraging me to 'take a few bob extra' for this and that. Is it for his benifit or for mine?????

Have you asked them why? Sounds like ropey "advice" to me. Don't borrow what you don't need. If your broker is not acting in your best interests then find another one or just shop around independently.