‘Colossal’ seconds fees keep mortgage brokers away – Star Letter 06/05/2016

This week’s Star Letter goes to an anonymous contributor [sic] for his or her comment on: Mortgage brokers must leap ‘mental hurdle’ of first secured loan deal, on our sister title Specialist Lending Solutions.

With secured loan fees remaining at a colossal 10% to 15% of the loan I seldom have clients in such dire straits that this is the best way forward. I don’t appreciate making high amounts of commission in this way, unless there is no better alternative for the client. Even then, I ask for the fees/commissions to be reduced. Unfortunately, a number of the main loan brokers will not allow a reduction.

At least, the restriction of the early repayment charge, a short while ago, was a great improvement.