PIBA charge 250euro to avoid walking away?

S

svtest

Guest
Hi ,

I 'm applying the mortgage through a broker which is recommended by a colleague. My colleague told me no charge of application but the broker said PIBA (Professional Insurance Broker Association) will charge 250 euro unless the mortgage is drawndown and the 250 euro will return back. Does anyboday have the similiar experience with borkers recently?

Regards
 
The is a €100 application charge payable to PIBA before they will present your case to their panel of lenders. This is refunded to you once you drawdown your mortgage so in essence you are not charged. It is as a preventative measure as some people were applying direct to the banks and also through brokers and getting the same approval thus wasting time. The €100 basically shows that you are serious about drawing down through PIBA, if not you lose the €100.

On top of this PIBA also charge the broker 0.2% of the commission payable on a case with a minimum fee of €250 per case. The broker in your case seems to be passing this onto you.

You have three choices

1) Do the groundwork yourself and apply to the banks directly
2) Use another broker
3) Stick with this broker

Before you change broker I would double check with the recommended one as it may be unwise to go on "my colleague told me". Sometimes things are lost in translation. If the broker is charging you €250 then it may be wise to shop around.

[broken link removed]
 
You must log in or register to reply here.
Back
Top