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With the rise in interest rates and the squeeze on everyone’s disposable income due to the cost of living, many people are now taking the opportunity to downsize from larger properties.
The main issue in the current property market is properties can take a longer to sell. Many have found their dream home but feel they are unable to pursue the purchase as their current main residence has not sold.
In this scenario, there is a solution.
Bridging loans or chain break finance allow you to raise funds quickly to secure your dream home, without waiting for your current, main residence to sell.
These lenders can fund up to 100% of the purchase price with additional security, meaning you do not need to put any of your own funds into the purchase.
Market research
With the rise in popularity of bridging loans /chain break finance and the squeeze on everyone’s back pockets, I decided to complete some market research to see what fees brokers are charging.
I investigated 5 brokers and found that 4 of these 5 brokers were charging broker fees. This broker fee is a percentage of the loan amount that is payable by you, on completion, to the broker.
Results
From this research, I found that these broker fees ranged from 0.3% – 1% of the loan amount with the average being 0.5% of the loan amount.
Based on this research the below table illustrates the average fee that would be chargeable for this advice.
| Loan amount | 0.5% Average broker fee others may charge! |
| £200,000 | £1,000 |
| £300,000 | £1500 |
| £400,000 | £2,000 |
| £500,000 | £2,500 |
| £600,000 | £3,000 |
| £700,000 | £3,500 |
How can Advocate Finance help?
At Advocate Finance we DO NOT charge broker fees.
We only charge a single, flat fee of £395 which is payable on a legally binding mortgage offer.
This fee is fixed and is the only fee we charge for our services. This fee remains the same regardless of loan size or complexity and is a large saving when compared to the fees in the above table.
Not only can you take advantage of our low fixed fee, but you can also take advantage of our award-winning advice.
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