Research from Boon Brokers has found most borrowers want more transparency from mortgage brokers when it comes to fees and commission.
The research, carried out by TLF Research, found that 96% of people wanted both written and verbal explanations of broker commission and fees before applying for a mortgage.
85% did not think brokers should charge both a client fee and receive commission.
67% said they did not get a full written breakdown of commission earned and 66% said they did not fully understand how brokers get paid.
87% said transparency played a big role in how much they trusted their broker.
People in the 55 to 64 age group preferred written documentation over verbal breakdowns, with 72% saying this helped them understand fees and commission.
Among 25 to 34 year olds, 47% would only use brokers who are fully transparent about how they get paid.
25% said commission was only mentioned briefly or not at all.
Confusion was widespread, with only 31% knowing that lender commission varies by case, leaving 69% unclear on broker income.
Some thought all lenders pay the same commission, others believed it is standardised, and a few said brokers always get a fixed fee whatever lender they recommend.
On the issue of brokers receiving both a fee and commission, 85% said this practice should be clearly explained to ensure fairness and trust.
Gerard Boon, managing director at Boon Brokers, said: “Mortgage brokers are required by FCA regulations to provide clients with clear breakdowns of their commission.
“However, what is often missing is a jargon-free explanation that helps borrowers fully understand both the broker fees and commission that they earn.
“Providing transparent, easy-to-understand information is essential to ensure clients can make informed decisions and maintain trust in their broker.”
