# Should mortgages be added to the school curriculum? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-31 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Mortgage Broker Fees: What You Need to Know Meta Description: Discover why five out of six homeowners don’t understand their mortgage and the benefits of using a mortgage broker to navigate through the complexities. URL: https://financedigest.com/should-mortgages-be-added-to-the-school-curriculumhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/img8350-266-sbi-300739665-1736837962168-compressed.jpg) **Five out of six homeowners don’t understand their mortgage – yet many have never sought the assistance of a mortgage broker** Research has revealed that only one in six homeowners (17 per cent) say they understand the details of their mortgage. When mortgage broker Boon Brokers questioned 1,100 UK homeowners to find out how much they understood about mortgages, 83 per cent said they weren’t sure how their home loan worked in terms of fees and interest rates. One in 12 (eight per cent) admitted they found mortgages very confusing – a figure which was higher with younger homeowners aged 18-24 (13 per cent) as opposed to only three per cent of mortgage holders aged over 65. It’s no wonder, therefore, that one in five mortgage holders (22 per cent) think mortgages should be on the curriculum at school. But despite the lack of understanding, well over a third of mortgage holders (39 per cent) have never used a mortgage [broker – even though a good one could explain products to homeowners and help them choose](https://www.financedigest.com/how-choosing-a-compliant-broker-benefits-traders.html "How Choosing a Compliant Broker Benefits Traders") the best one. [Mortgage broker fees can be a source](https://www.financedigest.com/caixabank-proposes-sector-wide-freeze-in-variable-mortgage-costs-source-says.html "Caixabank proposes sector-wide freeze in variable mortgage costs, source says") of concern for homeowners, with fees varying widely. Boon Brokers questioned 44 mortgage brokers across the [country which revealed](https://www.financedigest.com/new-research-reveals-the-countries-leaving-cash-behind.html "New research reveals the countries leaving cash behind") six out of 10 do charge clients a fee. The average amount was found to be £559, but some charged more than £1,000. This is despite all the [mortgage brokers](https://www.financedigest.com/smartr365-launches-mortgage-kanban-workflow-tool-smooth-mortgage-application-tracking-brokers.html "Smartr365 launches ‘MortgageKanban’ workflow tool to smooth mortgage application tracking for brokers") questioned admitting they also get a procuration fee from the lender. A [mortgage is likely to be the biggest financial commitment you enter into, and as such you want to choose your mortgage deal](https://www.financedigest.com/uk-watchdog-contacts-banks-following-huge-withdrawal-of-mortgage-deals-ft.html "UK watchdog contacts banks following huge withdrawal of mortgage deals -FT") wisely. [Working with a good mortgage broker](https://www.financedigest.com/real-estate-brokers-vs-agents-which-one-should-you-work-with.html "Real Estate Brokers vs. Agents: Which One Should You Work With?") can help make the process much easier. But what are the key [things to consider when looking for a mortgage](https://www.financedigest.com/4-things-you-should-know-before-getting-a-reverse-mortgage.html "4 Things You Should Know Before Getting a Reverse Mortgage") broker? - **Ask [family and friends](https://www.financedigest.com/generation-y-relying-on-friends-and-family-to-pay-their-energy-bills.html "Generation Y relying on friends and family to pay their energy bills") who they have used**. Word of mouth recommendations will often be the best way to find someone you’d feel happy using. - **Don’t equate paying a fee with getting a better service** – the two do not go hand in hand. All brokers receive a procuration fee from a [lender](https://www.financedigest.com/court-fees-and-access-to-justice-the-impact-of-the-supreme-courts-decision-on-lenders.html "Court fees and access to justice:  the impact of the Supreme Court’s decision on lenders") when you take out a mortgage so many do not charge you additional fees directly. - **Be clear on what fees may be payable and how they may vary.** However, be careful what you pay for as [not all mortgage brokers charge the same fees.](https://www.boonbrokers.co.uk/mortgage-broker-costs/) Some mortgage brokers operate on a fee-free basis for their clients, as they are paid a commission from the lender. - **Find out whether you’re tied into your current mortgage – or if you’re on the dreaded SVR.** It should be relatively easy to find out when any [fixed rates](https://www.financedigest.com/rci-bank-increases-rates-across-fixed-term-accounts.html "Rci Bank Increases Rates Across Fixed Term Accounts") you are tied into finish. You want to make sure you switch at the [end of the deal rather than getting stuck on a standard variable rate](https://www.financedigest.com/boe-raises-rates-again-as-investors-look-towards-end-of-hikes.html "BoE raises rates again as investors look towards end of hikes"), which will cost you more. If you use a broker, they’ll be able to flag to you every time your mortgage [deal comes to an end](https://www.financedigest.com/soccer-nike-ends-sponsorship-deal-with-spartak-moscow.html "Soccer-Nike ends sponsorship deal with Spartak Moscow"), so you never pay more than you need. - **Make sure any** [mortgage broker you use has whole of market access. This means they have access to every lender on the market and can therefore find you the best possible deal available to meet your individual needs](https://www.financedigest.com/4-things-you-need-to-know-about-mortgages.html "4 Things you Need to Know About Mortgages"). - **If you have tricky circumstances, a broker will be essential.** A broker will be particularly useful if you have any unusual circumstances like a bad credit rating, you’re [self employed](https://www.financedigest.com/3-common-financial-hurdles-for-the-self-employed-and-how-to-overcome-them.html "3 Common Financial Hurdles for the Self Employed (And how to Overcome Them)") or have some other situation which may unsettle the lender. - **Make sure you do your research.** Check independent review [services like Trust](https://www.financedigest.com/how-financial-services-can-secure-data-and-build-trust-in-todays-modern-environment.html "How financial services can secure data and build trust in today’s modern environment") Pilot and Feefo. Are they consistently rated excellent? - **[Trust your gut](https://www.financedigest.com/trusting-your-gut-how-to-harness-the-power-of-your-business-instincts.html "Trusting your gut: how to harness the power of your business instincts") feel.** You need your broker to be someone you feel you can rely on, who understands your circumstances and has your best interests at heart. If you [feel uneasy](https://www.financedigest.com/analysis-as-japan-aligns-with-u-s-chip-curbs-on-china-some-in-tokyo-feel-uneasy.html "Analysis-As Japan aligns with U.S. chip curbs on China, some in Tokyo feel uneasy") or don’t really like the individual, you’d be better looking again. - **[Ensure your broker is authorised and regulated](https://www.financedigest.com/the-lego-blocks-of-saas-how-microservices-can-help-ensure-compliance-with-changing-financial-regulations.html "The Lego blocks of SaaS: how microservices can help ensure compliance with changing financial regulations") by the FCA (Financial Conduct Authority).** This should either be directly or through a network. This provides you with vital [protection if you are given poor mortgage](https://www.financedigest.com/digital-id-revolutionises-end-to-end-mortgage-and-protection-platform.html "Digital ID Revolutionises End-to End Mortgage and Protection Platform") advice. --- This blog is powered by Superblog. 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