Lack of fee transparency for banks selling mortgages...

The lack of transparency in the mortgage industry has been somewhat of a bugbear for Enable Independent, unlike banks we keep all of our fees transparent, whereas if you go to a bank they hide their fees within a mortgage package.


Mortgage brokers by law have to disclose their charges up front, where as banks do not have to, which often gives the impression that banks’ mortgage services are free. Banks also receive incentives to sell mortgages to customers, and unlike independent advisors such as Enable Independent they are stuck with the mortgage products from their particular bank, which might not be the best for your needs. Whereas an IFA can access all of the mortgage products available on the market, making sure the mortgage fits your needs and not the other way around.

However this might all change in the future as the newly elected Lib Dem MP for Eastleigh and former mortgage broker Mike Thornton, they want banks to be made to be more transparent with their charges, which at the moment is obscured within the mortgage rate, staff salary or bonus.

LSL Property Services mortgages director David Copland says: “It is a problem that has always been prevalent in the market. Bank advisers do not show the cost of the advice through the salary or sales incentives loaded on.

“I wish it would change but it is not going to happen because it is too difficult for banks to work out their costs and say this is what we are paying the adviser for the mortgage.”

Until some real legislation comes into place it looks as though banks will get away with hiding their fees within their mortgage products. At the moment inexperienced bank staff can sell mortgages, where as an Independent Mortgage broker has to have several qualifications, and they normally have years of experience within the industry.

If you would like speak to a mortgage broker with years of experience why not come and speak to Richard at Enable, all of our fees are transparent and you will be talking to an experienced mortgage broker not a glorified sales man, and he will be able to give you a choice of mortgage products from across the market place.

In respect of residential mortgage advice Enable Independent charges a fee of 0.35% of the loan amount subject to a minimum of £500. Any payment we receive from the lender is offset against the fee charged by us. Therefore, for a loan amount of £150,000 our fee would be £525 less anything received from the lender. By charging for our services we are able to provide you with details of all lenders, including those who do not pay fees to advisers. For equity release mortgage advice we charge a fee of 1.00% of the loan amount subject to a minimum fee of £800. For adverse credit mortgage advice we charge a fee of 1.00% of the loan amount subject to a minimum fee of £800.

The Financial Conduct Authority (FCA) does not regulate some forms of buy to let mortgage.