MoneyBackMortgages

ReportInvestor · 8 October 2006 at 3:19AM

Any thoughts on

https://www.moneybackmortgages.com

which claims to let you search 90% of the market and get 1/2 the broker's commission when you clinch your own deal?

Sunday Times - Mortgage deal with a "windfall"

The Sunday Times covers its back:

".....Those who want an expert to search out the best deal from the whole mortgage market will be better served by a mortgage broker or an independent financial adviser (IFA), as the long-term price of a bad choice of loan could be tens of thousands of pounds...."

kenshaz · 8 October 2006 at 8:48AM

We are moving towards a situation ,similar to the one in the travel agent sector,whereby the consumer is becoming more sophisticated,provide the tools(ie software)and it will happen,and this will have an impact on the industry.I would not endorse this company without full research and a history and analysis of it's transactions,but they are ahead of the game, it will happen,because it is not rocket science.

kenshaz · 8 October 2006 at 9:06AM

MortgageMamma
Mad Maverick MoneySaving Maniac

I've not found a software wizard anywhere near as sophisticated as the one's a broker uses (the main being trigold, mortgagebrain, mortgage encore 2000, mortgagelink enterprise) - I think you would really have to have a look at the systems themselves and their capabilities before you could really justify that comment

I agree I do network with other professionals, for example I get 30% of my business through 2 firms of solicitors, a bit more through a small local building firm who build small estates, I get referrals from two local IFA's who don't do mortgages, and one estate agent who does not have an inhouse mortgage broker. Most of these I pay a referral fee upon completion of a sale - but it works both ways as I refer business back to them also. I also get paid for any referrals that I make to a conveyancing firm - so thats another source of income. However the key to all this is disclosure, and in line with the FSA and Law Society regulations anybody who pays me a fee/who I pay a fee to is disclosed to the client.

Another thing that concerns me is, and I don't know why/the technicalities so forgive my ignorance - I have yet to see companies such as Egg, HSBC etc appear on my sourcing system. Of course Britannia do, and I think I saw Direct Line appear once last year - but thats about it - surely it would be better to have these on a sourcing system rather than brokers having to periodically update themselves on these companies products via other means?

I believe that this quote by MM,is relevant to this thread and highlights some points in respect to software required

Ian_W · 8 October 2006 at 10:46AM

Interesting, but no different in concept than mortgagegenie who Martin mentions in his sneeky ways to get mortgage advice article.

In fact, having used their search facility to look for a 2-3yrs fixed or discounted rate, it threw up 1200+ possibles BUT only 3 deals out of the 1st 50 actually offered any cashback at all. Whereas MG only lists those with cashback and compares them using it's own True Introductory Interest rate measure which compares them using the total cost over the deal period rather than the headline grabbing %int rate linked to huge arr fees.

Nothing new to see here, I'm afraid RI. Move along please!

payless · 8 October 2006 at 11:20AM

From their FAQs ...There is nothing to stop you speaking to a mortgage adviser who does not charge a fee to get the information on the mortgage that you require and then come to us.

Apart from morals !

Of course if the "adviser" gave bad advice, and you processed it via this site, you have no comeback.

I'm all for consumer power/ shopping around... but thats just underhand, and if any firm ( talking wider than just mortgages ) offered me such a service , I would have to think if I really wanted to do business with a firm with those morals .

kenshaz · 8 October 2006 at 12:06PM

payless wrote:

Apart from morals !

Of course if the "adviser" gave bad advice, and you processed it via this site, you have no comeback.

I'm all for consumer power/ shopping around... but thats just underhand, and if any firm ( talking wider than just mortgages ) offered me such a service , I would have to think if I really wanted to do business with a firm with those morals .

Valid point,I would describe them as ethics,but are we not discussing ''protectionism'' .I tried to analyze and justify ,but I came back to the fact that companies sometimes undermine others.ie Npower .and British Gas in the pursuit of customers and competition.So why not suggest using others for information and then returning to them to complete.

ReportInvestor · 8 October 2006 at 12:12PM

Re Morals:

MoneyBackMorgages is a bit like Martin's "using mortgage brokers" article but more brazen and explicit. Am I right in thinking he has changed the title of this to edit out the word "sneakily" from the title?

If so he forgot to change the wording on the window opened in your browser

.

See here

HelpWhereIcan · 8 October 2006 at 12:24PM

Ian_W wrote:

Interesting, but no different in concept than mortgagegenie who Martin mentions in his sneeky ways to get mortgage advice article.

In fact, having used their search facility to look for a 2-3yrs fixed or discounted rate, it threw up 1200+ possibles BUT only 3 deals out of the 1st 50 actually offered any cashback at all. Whereas MG only lists those with cashback and compares them using it's own True Introductory Interest rate measure which compares them using the total cost over the deal period rather than the headline grabbing %int rate linked to huge arr fees.

Nothing new to see here, I'm afraid RI. Move along please!

Important that people notice that MortgageGenie will only share commission on remortgages, whereas MoneyBackMortgages appear to be offering it on all - so will include purchases. This would make it more useful to more people IMO.

Would also add that their search appears more user friendly and uses the same MortgageLinked system that many brokers offer (they are a broker afterall). MortgageLinked will allow people to narrow down their search more than MortgageGenie from what I can see.

They also appear to be offering an online tracking system for your mortgage which I always think is useful for a firm transacting business this way.

FSA register gives it as a trading style of Quay Financial Services Ltd which was registered 07/06/2006 with MoneyBackMortgages being registered 25/08/2006. The company itself was incorporated 06/04/2006.

The main director mentioned on the FSA register appears to have been with a firm called QFS Ltd (which was an appointed rep of Sesame ltd) until 01/09/2006.

Both companies are at the same address, so I would suggest that they have set up a mortgage arm that is directly regulated by the FSA and have the IFA arm of the business still under Sesame.

I post this mainly cos I am in an anal mood today, but also cos it is interesting to me (as a Sesame AR) that they have done this. I was refused permission by Sesame to have MortgageLinked on my site as they have an argument over who takes responsibility for the information provided by MortgageLinked (me, sesame or Network Data who provide it) and said it was too much of a risk under FSA rules for me to have it. Interesting that Quay seem to have come up against the same issue, but have set up a seperate (directly authorised) company to get around it. Nothing wrong with that, all allowed and ok.

All in all, seem to have a history in the industry and (IMHO) offer a better service than Genie (as not restricted to remortgage), better sourcing tools and an online tracking service. Will be interesting to see how they get on and if they can actually provide the service that customers need when it comes to processing the applications etc.

HelpWhereIcan · 8 October 2006 at 1:12PM

ReportInvestor wrote:

Sunday Times - Mortgage deal with a "windfall"

The Sunday Times covers its back:

".....Those who want an expert to search out the best deal from the whole mortgage market will be better served by a mortgage broker or an independent financial adviser (IFA), as the long-term price of a bad choice of loan could be tens of thousands of pounds...."

I also find this quote from the Sunday Times article a little confusing (worrying?)

Sunday_Times_-_talking_about_a_satisfied_customer wrote:

The couple have also saved nearly £300 a month after moving their home loan from an Abbey deal at 4.75 per cent to Northern Rock’s two-year fix at 4.69 per cent. Monthly repayments on the £278,000 mortgage have fallen from £2,380 to £2,100.

It may be a Sunday, and I may be being a little slow, but by my calculations the only way that this could be possible would be by extending the term from apprx 12.5 years to 15 years. The saving on the interest rate would save approx £10 pm even on that loan size. Most of the £300 pm saving could have been achieved staying with the Abbey and paying no fees to extend the term, or have I missed something?

Of course, I am maybe being just a little obtuse - I think it may be a typo and the Sunday Times meant 5.75% not 4.75% - just unfortunate that I, as a broker, could not make the same error in my figures/promotions without getting a right royal caning from the media and the FSA :rotfl: :cool:

payless · 8 October 2006 at 5:32PM

This companies are going to find it harder if
1. FSA start qusetioning "brokers" doing so much non advised business
OR
2. Lender decide to reduce commissions to brokers not providing advice
OR
3. Someone comes in with a silly figure ( in the cavendish £35 region) and blow them all out of the market

whambamboo · 8 October 2006 at 9:18PM

Gave a quick run through this, and it gave a very good selection of mortgages to choose from and quite flexible. It's not for the financially naive I think, as the subtleties of early payment charges, etc. aren't easy to compare, but there were so many mortgages thrown up by this (355), even specifying self-certify, no proof of income, I was impressed.

This is for the empowered intelligent consumer who understands all the numbers.

MoneyBackMortgages

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