Homebuyers beware: mortgage advice fees vary widely
16th April 2013, 0 comments
Since January 1, banks and other mortgage providers have been banned from charging commission. Instead they have to charge clients a fee, whether or not the consultation results in a sale.
Banks are currently the cheapest option with an average fee of €2,036, the survey shows, but generally only advise on their own products. Specialist chains, by contrast, charge an average €2,784.
IG&H expects prices to fall as the market settles down and consumers take action to reduce their reliance on advisers. Online mortgage applications and consultations will also cut costs, the consultancy said.
ABN Amro, for example, has started offering mortgages without any advice necessary although consumers have to pass a financial knowledge test first.
However, Rabobank, the Dutch mortgage market leader, had planned to introduce a ‘no cure no fee' system but was banned from doing so by the financial sector regulator AFM.