We all know that nothing in life is free, so the finance broker who claims “our service is free to use” actually means that you are paying for their service through a higher charge from your chosen lender.
You probably know that they are not working for zero income and you may guess that they are getting commission from the lenders that they suggest you use. It seems only natural that they would want you to use a lender that maximises their income?
So how do you know that you are truly getting the best possible price for your new loan?
I came across a website from a debt advisory firm that spelt out the fallacy of ‘free’ debt arranging – they said:
“If you decide to use a finance broker that presents a ‘no fee’ service, they will receive commission from lenders, meaning that their advice is not independent.”
This seems the right way to do business. Plus contingent fees ensure alignment between client and service-provider, and business owners will only pay for results.