I have never used a Mortgage broker and am new to property investing.
How common is it for Mortgage Brokers to request a retainer? A retainer is a sum of money that is paid in advanced and is refunded on completion of finance and payment of brokers commission from the lender.
The only reasons I can see for demanding a retainer is that:
1.It limits shopping around. You are making a financial commitment to that broker.
2.They have a history of not going through with the “sale” so it limits their loss if the customer is not happy with their service.
I find this retainer demand unusual as many businesses invest in building the relationship and work hard for the sale.
Is it more important to shop around for a compatible mortgage broker than finding one who offers the best deal?
Is it common to compare brokers like you would with banks?
Your feedback on retainers and mortgage brokers would be helpful.
Jeremy
How common is it for Mortgage Brokers to request a retainer? A retainer is a sum of money that is paid in advanced and is refunded on completion of finance and payment of brokers commission from the lender.
The only reasons I can see for demanding a retainer is that:
1.It limits shopping around. You are making a financial commitment to that broker.
2.They have a history of not going through with the “sale” so it limits their loss if the customer is not happy with their service.
I find this retainer demand unusual as many businesses invest in building the relationship and work hard for the sale.
Is it more important to shop around for a compatible mortgage broker than finding one who offers the best deal?
Is it common to compare brokers like you would with banks?
Your feedback on retainers and mortgage brokers would be helpful.
Jeremy
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