You only give me your funny paper

New homeowners may face broker fee

Thursday, 24 April 2008 08:00

People hoping to take out mortgages will now face another charge if buying through a broker.
The Professional Mortgage Brokers Association has announced that it is strongly considering introducing the burden on prospective new homeowners.
The announcement follows the decision by several banks and other lenders to cut back the commission they pay to brokers.
Last year brokers were involved in 50% of mortgages taken out in Ireland.
Jack Fitzpatrick, Professional Mortgage Brokers Association Chairman, says that his 900 members are suffering the knock-on effects of volatility in the global markets affecting banks.
That volatility will have repercussions for customers using brokers to get mortgages.
In the last two weeks, seven banks have retuned their mortgage offering by putting rates up, putting loan to value up, saying they are pulling out of the broker channel, or cutting broker commission.
Yesterday AIB and EBS were the latest to make moves.
AIB said it is cutting the commission it pays to brokers to 0.5% of the mortgage amount drawn, down from 1%.
They blame the continuing high cost of funds in the financial markets and the effect it is having on margins in its mortgage business.