Mortgage brokers a question

Ian_Griffiths_Halifax

Rcraigs. Now is not the right time to be joining the industry. Most people are just existing.

minimike2

Rcraigs wrote: »

Can any of you see the Market coming back with Mortgages? Surely everyone needs one?

Yes they do, but the problem is the number of people that CANT change thier mortgage because the products are juts no longer available, so it doesnt make financial sense for them to move (and they become stuck on SVR). Also the problem of dual pricing meaning that client go direct to lender to save 0.2% on the rate.

Interestingly, brokers, do all you guys have access to Woolwich Switch & Save Lifetime Tracker Base +0.69% £995 fee with the three year tie in up to 60% LTV??? - It says on thier website that its only available direct (and it does have the fee and three year tie in direct) but I can access it?? Do you guys all have it too? The others with no fees I can get, but only with the three year tie in, which they dont impose if you go direct, so they are correct in saying that they are only available from them direct, but the 60% LTV one I definately have as I am currently doing an application for it.

Conrad

Duhnston

I've been looking for a new IFA to refer to. I've called a few local to my work in South Herts - but only St James Place are interested so far and thier commission cut to me seems low. I guess they are employees so they pay less than a self employed IFA.

As to whether we are busy or not, it depends on your outlook. I would say if you earn less that £100k pa as a personal income after expenses, then you are not busuy no matter how much work you do.
I could be busier if I was fees free, but I am not interested in earning peanuts given the stress we put up with.

Rcraigs

If everyone is droping out what else are you guys going to do for work?

payless

minimike2 wrote: »

Interestingly, brokers, do all you guys have access to Woolwich Switch & Save Lifetime Tracker Base +0.69% £995 fee with the three year tie in up to 60% LTV??? - It says on thier website that its only available direct (and it does have the fee and three year tie in direct) but I can access it?? Do you guys all have it too? The others with no fees I can get, but only with the three year tie in, which they dont impose if you go direct, so they are correct in saying that they are only available from them direct, but the 60% LTV one I definately have as I am currently doing an application for it.

Yeah its on their current broker guide- almost used it myself the other day , worked out slightly cheaper than a part port deal I was did with another lender , but they struck with that as no ties.

HelpWhereIcan

The year started off very well, but plummeted in April, May & June - recovering slightly at the mo but probably at 2006 levels at the mo.

Have been having chats with some local firms about taking their client banks on as guys leave the industry, but the money some people want is pure fantasyland (and shows they have no idea about the way the FSA capital adequacy rules work and how they affect an offer they will receive).

One sub prime only broker locally still thinks his loss making business is worth six figures!!!

Have taken over an IFA firm and will be re-licensing for investments myself to enable me to act as the principal, take the firm on and make the model changes I want to.

Just had a conversation today with a very experienced guy who has recently left the industry and knows an ex collegue looking to do the same.

Their client banks may be coming over to my practice with the option for the advisers to return and service them at some point in the future (if they wish) but there is a good match between those advisers and me in terms of belief system and client profile and I know they (and their clients) will fit into my new model.

The main thing that has happened to me is the fact that I have been forced into a certain amount on introspection and my practice will be very different in 2/3 years as a result of some of the thoughts I have had and opinions of the future I have formed.

Mortgage business is still there and will come back in 09/10. BUT I will be very different then.

minimike2 wrote: »

Oi, get off my patch!




I will allow you as far north as Catterick, thats your lot!

And mine.... don't want any wezzie tykes in my neck of the woods :rotfl:(Don't cross the border at Selby!! You can have Withernsea though)

dunstonh

but only St James Place are interested so far and thier commission cut to me seems low. I guess they are employees so they pay less than a self employed IFA.

St James Place are not IFAs. I think their commission cut is lower because of what the salesforce side takes.

Try and avoid the salesforces. Much as we say with mortgage salesforces, invesmtent adviser ones are equally best avoided. Ideally, you want a small local firm that values service and you can have a consistent contact.

HelpWhereIcan

Rcraigs wrote: »

If everyone is droping out what else are you guys going to do for work?

People I have been talking to:

1. Debt Management
2. His own property empire
3. working for his dad's formalwear hire company
4. The banks (a common one for those staying in the industry)
5. Diving Instructer in Malta

As many options as there are people and backgrounds

minimike2

payless wrote: »

Yeah its on their current broker guide- almost used it myself the other day , worked out slightly cheaper than a part port deal I was did with another lender , but they struck with that as no ties.

So basically they are advertising to customers that they can only get it direct, so that they just think that is the case and dont bother going to a broker. Yet more underhand tactics from the Woolwich.

If there was any way around not using them I would, but in this case nothing beats it by a fair stretch. I always warn clients of the shoddy service and abysmal underwriting, but at the end of the day if it saves £6k in interest compared to the next best then most people will put up with it.

HelpWhereIcan

sarkin wrote: »

I wanted to know how everyone else is coping, my network went bust last Friday and we are being farmed out to MBSL, I am looking at other networks.

Can recomend mine even if they are seen to be a bit heavy handed at times (recently announced that all subprime cases have to be checked in future). Their compliance is pretty tight and everything they have predicted as a potential issue has become a worry for some. I am happy that my files are tight so no worries there.

Although having a network looking at the business you write is not freedom in its truest sense, I have no panel restrictions, get very good terms from lenders and insurers and I think most small firms will be better off as Network members in the future.

Other than regulatory creep and burden you have to consider that lenders may well be more choosy who they do business with. The Woolwich has dumped many and will only allow new registrations (or re-registrations) with their Network partners.

The mortgage club argument is dangerous (look at MX, Kensington's and Platform's recent moves).

Lenders will be looking for quality business in the next couple of years and no one man bands will be able to offer them the reassurance of robust procedures that the large networks can.

Another reason I like mine - they are one of the least likely to go under (although never say never).

sarkin wrote: »

My website is generating about 20 -25 enquiries a month of which none of them can be converted to business, either they dont have the income or equity, credit history is not A1 and the rate will be over 8% or its cheaper to stay wirth current lender on a tracker. Or they tick more than 1 box, so how is everyone else doing

Kind of the same problems but have options for those in financial difficulties and have a predominantly prime client bank so have found I am telling people to sit tight for the time being and I will review as and when the market turns.

Just cos it is not a case now, does not mean it will never be a case - especially if you can help a sub prime client do some damage limitation until their mortgage options improve - either due to market or their improving profile (eg mortgage arrears being historic rather than current).