Free financial advisor - what's the catch?

[Semple]

It's called a "proc fee" brokers typically get about .35% of the loan amount but that can vary.

I'm guessing based on that they don't earn a salary - it's purely commission based. As .35% on a starter mortgage you'd be looking at least 1k commission. No idea whether they have to split that commission with the platform they work on, but putting through say 10 a month which doesn't sound like that much work is then 10k a month.

We used hey habito for our first mortgage and you basically fill in some details and they put you in touch with a broker/advisor so it's not like they even have to go searching for business.

 

[HangTime]

Make sure you do your own research if going with a broker. Sometimes they will offer worse deals than the open market.

As mentioned above they will be looking to sell you life insurance income protection health insurance you name it.

Personally I would do it all myself now but if you are a bit unsure there's no harm (aside from the time investment) in speaking with a broker.

 

[dowie]

^^^ this. Check the comparison sites first and if they can't beat the best deal there then WTF use are they?

Maybe if you're a contractor or have bad credit or you're buying a flat above a shop or you're not a shop or whatever... but if you're just a Joe Average salaryman then they might be of little use.