Once more, Mortgage Broker’s commissions is a topic in the firing line. I have opened wide my ears trying to understand what’s the matter with that (again), but I must admit that all arguments put forward by noisy people just do not hold water. They rather show how they lack knowledge and work ethic! I must recall why Mortgage brokers and commission’s scheme is essential.

It is understandable that mortgage brokers, like any other workers, need to make a living. If they are not given a commission by the lender for a successful application, who is going to pay for their service? Yes: the client. It will be another fee, added to the already existing costs of buying a property. Entering the property market can be tough for most of us, why putting more pressure on buyers?

Mortgage broking is all about networking and building confident relationships with clients. A Mortgage Broker will always look after his client’s needs first, and I am happy to think most of us do so. In fact, if the client is not 100% happy or find a better offer elsewhere, it is a lose/lose situation. He will not be trusted anymore, not be referred anymore, not have opportunities anymore, leading to a crumbling network and so: a decreasing business. A strong work ethic is a key in the industry and we all fully appreciate the importance of it. Thinking we can choose a lender because of the commission it pays is absurd, especially when we know that all lenders offer pretty much the same remuneration, there is no notable difference between them, or not that I am aware.

We offer advices, expertise, options, solutions, and the most important: choices. How long would it take an average person to visit and understand offers of 20 (or more!) different lenders? And because an average person wouldn’t undertake this step, only Majors would be considered, which means competition will be over and big banks could enjoy higher profits… at client’s expenses.