Home buyers wasted £370m on their property purchase last year due to mortgage brokers “double dipping” on fees, it has been claimed.
Mortgage broker One 77 Mortgages claims some advisers unfairly charge buyers for advice despite also getting a procurement fee from the lender for arranging a loan.
Alistair McKee, managing director of One 77 Mortgages, which doesn’t charge fees, claims “double dipping” is rife in the industry and claims the average broker fee charged to buyers is £400.
Based on 926,220 mortgaged transactions last year, he claims this means consumers could have been paying £370.8m unnecessarily.
He said: “It’s truly shocking that brokers are double dipping on fees in this way and stinging the consumer in the process. This is a colossal sum of money that’s being thrown away unnecessarily, in many cases by the people who can least afford it.
“As ever, it’s a case of buyer beware, but understandably, many less experienced buyers believe this is the norm across the board and that they have no choice but to pay. Many clients find it hard to believe that some brokers don’t charge broker fees.
“This is a costly misconception as that’s certainly not the case any more.”