Online mortgages

Borrowers can pocket commission rebates worth hundreds of pounds by taking out their mortgages through some online brokers

So who is offering?


Moneybackmortgages.com, Money4umortgages.com and Mortgagegenie.co.uk all pay users at least half of the commission they earn from lenders when they sell a mortgage. These commissions - also called “procuration fees” - are typically between 0.3 and 0.5 per cent of the loan amount, equivalent to about £300 to £500 for every £100,000 borrowed.

What about banks’ special deals?


Thanks to the credit crunch, some banks are only selling mortgages directly, not through brokers. They are also offering “retention deals” to keep borrows after discount periods come to an end. Even then, savings can be made online.

MortgageGenie says that Halifax borrowers now being offered perks to stay with the bank can still pick up a commission rebate by taking out the same new mortgage through its website.

With Halifax paying commission of 0.32 per cent, this would mean £160 per £100,000 borrowed on tracker rates starting at about 2.84 per cent and fixes from 4.39 per cent, it says.

What if I want a big mortgage?


Big borrowing and buy-to-let mortgages often earn more commission for brokers, typically 0.4 to 0.5 per cent, so these borrowers stand to gain most from sharing commissions.

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