Mortgagegenie.co.uk

Lucy_Lastic · 29 June 2006 at 2:24AM

O.K. My 2 year fixed rate is coming to an end. I've read most of the relevant posts, I am pretty sure that I know what I want, but let's see......

I want a fixed rate,
5 year,
50/50 repayment/int only,
no tie in after the 5 years,
low fees
and no big discharge fee at the end
oh, and overpayments allowed, but not bothered about underpayments/payment holidays

should I use Mortgagegenie.co.uk - have I covered everything, or am I missing something?

Is it back to the broker for me?

I will be approaching my existing lender of course, but like to be well informed on my options first.

Your comments welcomed.
Thank you,

herbiesjp · 29 June 2006 at 7:53AM

Lucy_Lastic wrote:

O.K. My 2 year fixed rate is coming to an end. I've read most of the relevant posts, I am pretty sure that I know what I want, but let's see......

I want a fixed rate,
5 year,
50/50 repayment/int only,
no tie in after the 5 years,
low fees
and no big discharge fee at the end
oh, and overpayments allowed, but not bothered about underpayments/payment holidays

should I use Mortgagegenie.co.uk - have I covered everything, or am I missing something?

Is it back to the broker for me?

I will be approaching my existing lender of course, but like to be well informed on my options first.

Your comments welcomed.
Thank you,

To be honset based on what you have posted, it would be very difficult for anyone to come back with any deals. Simply because of the fact a lot of deals have different tier levels i.e 75% borrowing 85% borrowing 90% borrowing etc. At each level the rate may be different. So without knowing the following it will be difficult:

Property value
Mortgage needed
Term
Your income
Any other financial commitments in the background

I'm sure that with that information soemone will be able to give you an idea on rates.

What lender/rate are you looking at?

AndrewSmith · 29 June 2006 at 8:03AM

Secondly to that,

Unless you know the exact product / lender that you want, MortgageGenie will be of no use to you as they will not suggest a lender or product for you.

Also, if you are using a broker (as you suggest) to do the research for you why don't you allow him/her to place the mortgage for you? At least that way you are fully protected and indemnified against the advice given.

If you use the broker for research, then go direct to MortgageGenie using his/her results you will have absolutely no protection or indemnity against the advice given by the broker in relation to the suitability of the product.

Using brokers in this way is exactly what is forcing a number of them to have to start charging up-front fees to cover their costs as, on the commission only route, the broker is paid nothing until the mortgage completes.

MortgageMamma · 29 June 2006 at 8:45AM

AndrewSmith wrote:

Secondly to that,

Unless you know the exact product / lender that you want, MortgageGenie will be of no use to you as they will not suggest a lender or product for you.

Also, if you are using a broker (as you suggest) to do the research for you why don't you allow him/her to place the mortgage for you? At least that way you are fully protected and indemnified against the advice given.

If you use the broker for research, then go direct to MortgageGenie using his/her results you will have absolutely no protection or indemnity against the advice given by the broker in relation to the suitability of the product.

Using brokers in this way is exactly what is forcing a number of them to have to start charging up-front fees to cover their costs as, on the commission only route, the broker is paid nothing until the mortgage completes.

Yes and using brokers like this is a little bit on the immoral side as well. If you really want some cashback why not let the broker do some research for you and you sign a disclaimer and say you have not been advised on the mortgage, then apply for the mortgage through the broker and agree to a 50% commission cashback. this will only work if your mortgage will pay a decent procuration fee, usually .35-.45% of the mortgage, as the broker will still have to earn his/her pennies administering your case through to completion. Only self empolyed brokers can usually do this as employees usually only get a small cut of the commission and cant do it.

Its good to support local business and deal with a person rather than a genie that may never appear when you need them to!

payless · 29 June 2006 at 1:39PM

why not let the broker do some research for you and you sign a disclaimer and say you have not been advised on the mortgage, then apply for the mortgage through the broker and agree to a 50% commission cashback.

becareful this potentially dodgy ground, and might come back to bit ( the broker) on the bum.

Brokers can offer different level of service... so yes if a client knows what they want , by all means treat as non advised, and document it , but don't do one thing ( advice or research) and then offer to rebate on converting from advice to non-advised- the regulators will see this as mudding the waters , especially if it later turns into a complaint
( less hassle if moving from non-advised to advised)

Whether its advised or not, there's nothing to stop it be offered on either
a. Commission only
b. Commission only with a % rebate to client
c. Commission plus a fee
d. Fee with 100% commission rebate to client

Personally I have used all methods.. treat every case on its merits

MortgageMamma · 29 June 2006 at 2:37PM

Payless I think you misunderstand

Sourcing the cheapest and the most suitable product without actually offering advice, or saying "this is definately the best mortgage for you" and not giving reasons is classed as an information only service. I've checked this with my principal, and they are perfectly happy for us advisors to do it providing we have a disclaimer signed by the client saying no advice has been given.

I can see what you are saying about swapping between advised and non advised, but finding the cheapest product and putting it in front of a client without the advice, is not advice! So, dealt with in the correct manner this procedure is fine.

payless · 29 June 2006 at 4:01PM

MortgageMamma wrote:

Sourcing the cheapest and the most suitable product without actually offering advice, or ............ is classed as an information only service..

Its a very fine line... ( not one I would want to trend often)

offering a reserach facility / best buy list is not usually classed as advice ... the FSA even do this themselves,.... but even in your post you state " most suitable product "

I've checked this with my principal,

I've checked it out with my firm's principal and compliance officer ( well me actually

- as I'm directly authorised sole trader ) and feel, too many blurred lines (would not even dare ask my external compliance consultants -- they have thrown out less risky suggestions)

Guess we agree to disagree... although personally why worry... if you are doing the work anyway just complete the file as fully advised ( at this stage not really that much more paperwork anyhow) and offer a rebate ( if warranted ) and then all is safe ( for client and adviser) --- better than having to justify it to an FSA inspection team/ PI etc.

Lucy_Lastic · 29 June 2006 at 8:50PM

Hi.

Thank you for all your comments, but I may not have made myself clear in my original post.

I am not looking for the forum to suggest a lender or a deal.

My question was - I´m pretty sure I know what I want, so is there any reason for not to use Mortgage genie?

I have so far not approached anyone, not my present lender or a broker. When I say "is is back to the broker for me?" I mean as I did two years ago. If I decide to use a broker, then I would use one in the normal way, not try to do a deal.

I have looked at Mortgage genie and input my requirements. I got a list of suitable mortgages/lenders to compare. The one I favour is Nationwide, fixed rate of 5.58% for 5 years. (I have done other research by the way.)

Why would I need to bother with a broker? Is it that, should I make my own decision, I have no come back on anyone? (As has been suggested) I was not aware that using a broker gave me any sort of come back anyway. Surely they search out the best deals (in their professional opinion), then I chose one. If I don´t like my choice then is it not my own fault?

What would give me grounds to subsequently complain to a broker and what good would it do me?

There is obviously more to this than meets the eye!

payless · 29 June 2006 at 8:57PM

but mortgage genie is a "broker"
offering a non advised rebate route OR
an advsied route ( gives some consumer protection) no rebate

nothing different to what any other broker can do...

I for eample recently rebated over 60% of commisson on a fully advised case ( not saying I would do this for everyone/ every situation)-
this was for a long standing client on a particularily high commission product- hence happy to do to make the overall package market beating - client happy good product flex options but would otherwise not looked at this deal at nomal price .. & better than terms he would have got if he had gone to a broker offering no advice/rebate ..& I got paid a fair days pay for a fair days work...

The last bit is the way I always try and do business (not plying for business... doubt I would take on new clients at moment anyway)

AndrewSmith · 29 June 2006 at 9:16PM

A reasonable 5 year fixed rate but there are better ones with free legals, no valuation fee and allowing overpayments without any extended tie in's.

I have seen one today that beats the Nationwide rate you quote by almost 0.5% (5.09%)

payless · 29 June 2006 at 9:16PM

Lucy_Lastic wrote:

Hi.
I have looked at Mortgage genie and input my requirements. I got a list of suitable mortgages/lenders to compare. The one I favour is Nationwide, fixed rate of 5.58% for 5 years. (I have done other research by the way.)!

I can only assume you have a small mortgage for this to be a deal you are interested

Mortgagegenie.co.uk

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