Rea: Do they still operate the commission back facility?

Hi All,

I'm dealing with Rea mortgage brokers at the moment. They never mentioned anything about getting commission back from the bank. Do they still operate this facility? My mortgage is quite high so it would be better for me if they charged me their charge and I got the 1% back.

Re: Rea commission back...

REA operate in two ways;

For mortgages under €250,000 there is a flat fee of €2495 + VAT (€1995 + VAT for mortgages under €200,000) which includes the solicitor's professional fee for the legal conveyancing and a full refund of the commission back to the client within 90 days of completion. Typically the refund is 1% of the mortgage amount.

For mortgages over €250,000 the legal fees are reduced to €499 + VAT (irrespective of the purchase price) and there is no commission refund.

In both cases legal outlays (Stamp duty, land registry, searches, etc) are not included in the fee. Also the above assumes you use a solicitor from the REA panel - if you use your own solicitor there is no fee and no refund.

Sarah

www.rea.ie

Re: Rea commission back...

Thanks Sarah, that's pretty clear!

Re: Rea commission back...

Doberden - just keep in mind - everything is negotiable (despite what Sarah W may say in public), and even if Rea decided not to refund a part of the commission there are other brokers that might. Obviously the bigger your mortgage and the potential commission, then the bigger the incentive for the broker to do the deal.

That said the Rea deal is pretty good but may not be the best if you have solicitor costs if you are selling as well.

Re: Rea commission back...

What Sarah W says in public is what Sarah W says in private. Over the last ten years (is it really that long?!) that REA have been operating we have been transparent, honest and clear in all our dealings with clients. We don't do "nudge, nudge, wink, wink" deals - what you see is what you get.

This is possibly why we lent €242m last year and should lend in excess of €320m this year..........

Sarah

www.rea.ie

P.S. This is not meant to be a sanctimonious post but, in my experience, if a deal is done for one client another has to be ripped off to make up for it and that's just not fair.

What Sarah W says in public is what Sarah W says in private.

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Fair enough Sarah - I certainly wasn't having a go at you or your company - I think your contribution to this discussion board over the years has been invaluable to many people, including myself and I don't mean to denegrate this in anyway.

I was just pointing out to the OP that some brokers may do deals on commission.