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  • FIRST POST
    • tingly
    • By tingly 9th Jan 18, 7:33 PM
    • 208Posts
    • 171Thanks
    tingly
    Fee waiver if take life cover out-is this the right thing
    • #1
    • 9th Jan 18, 7:33 PM
    Fee waiver if take life cover out-is this the right thing 9th Jan 18 at 7:33 PM
    Hello

    I have just been to a mortgage broker who is independent.
    Rather than pay a fee for the advice, circa £599 , they have offered to forego the fee, providing i take life cover out with them- which is fine as i need it to cover the mortgage
    The only thing is that if i stopped the premiums any time in the next 4 years i will be charged the original £599.
    Does this sound normal to you?
    Thanks
Page 1
    • amnblog
    • By amnblog 9th Jan 18, 7:43 PM
    • 10,148 Posts
    • 3,965 Thanks
    amnblog
    • #2
    • 9th Jan 18, 7:43 PM
    • #2
    • 9th Jan 18, 7:43 PM
    If you stop the insurance short term they won’t earn their full due from it to compensate them for the loss of the Broker fee.

    Makes sense, but not an approach I like. Not a fan of subsidising one element of work with another.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • ACG
    • By ACG 9th Jan 18, 7:44 PM
    • 16,100 Posts
    • 8,278 Thanks
    ACG
    • #3
    • 9th Jan 18, 7:44 PM
    • #3
    • 9th Jan 18, 7:44 PM
    Some brokers do it.
    It is not something I do personally, but not abnormal.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • tingly
    • By tingly 9th Jan 18, 7:51 PM
    • 208 Posts
    • 171 Thanks
    tingly
    • #4
    • 9th Jan 18, 7:51 PM
    • #4
    • 9th Jan 18, 7:51 PM
    Thanks for the replies. What are the best alternatives to this please? Do some brokers give the advice in a different/better way to this?
    Also , is it true some brokers have access to “exclusive deals”
    Thanks
    • ACG
    • By ACG 9th Jan 18, 8:01 PM
    • 16,100 Posts
    • 8,278 Thanks
    ACG
    • #5
    • 9th Jan 18, 8:01 PM
    • #5
    • 9th Jan 18, 8:01 PM
    I charge a fee for the advice and there is no reduction for taking out insurance. My thinking is that I get paid for the Mortgage job and I get paid for the insurance job.

    If you cancel the insurance down the line, I will not be chasing you for payment. If you cancel it, you cancel it and I just pay the clawback.

    Brokers do have exclusives and/or semi exclusives. It does not necessarily mean we will always be the best/cheapest.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • tingly
    • By tingly 9th Jan 18, 8:12 PM
    • 208 Posts
    • 171 Thanks
    tingly
    • #6
    • 9th Jan 18, 8:12 PM
    • #6
    • 9th Jan 18, 8:12 PM
    Thanks acg. Just to clarify- you charge for the advice regardless of what i take out with you and then i just pay you either before or after the mortgage? Is that right? .... just out of interest, what if the mortgage didnt go through- would i just sort of chalk it up to experience then?
    Thanks
    • ACG
    • By ACG 9th Jan 18, 8:26 PM
    • 16,100 Posts
    • 8,278 Thanks
    ACG
    • #7
    • 9th Jan 18, 8:26 PM
    • #7
    • 9th Jan 18, 8:26 PM
    I charge a fee on full Mortgage offer.
    I would refund or transfer to a new application if the mortgage did not complete because the lender pulled their offer because of my mistake or theirs.
    Last edited by ACG; 09-01-2018 at 8:34 PM.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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