Mortgage brokers a question

cooper2110

Surprised you haven't heard from Thinc and 2plan, as these were with us, worked out how to make money from it and tried to set up themselves but to nowhere near as good an effect.

Seem to be getting quite a lot of Sesame guys joining us recently from what I can gather, they must know a good deal when they see it (0% retention after 150K business written in year)

dunstonh

The grass is always greener on the other side when it comes to networks. Some will have better tech. Some will have better admin. Some will added services. Some are intrusive into your business. Some let you run your businesss your way.

Seem to be getting quite a lot of Sesame guys joining us recently from what I can gather, they must know a good deal when they see it (0% retention after 150K business written in year)

I had a visit from a rep from your network and the whilst I would easily go through the £150k mark he couldnt come up with much of a saving over what I pay Sesame. I can see why a number of IFAs would like that package but when you already run your business with independent back office software, independent research, independent factfinds etc. then there is less for them to offer. It got to the point where if I was to move from Sesame to them, I would be going backwards. Even the rep agreed that it wouldnt be right to move and fair play to him. However, if you are currently a low tech adviser then I could see the package appealing to you because of what they offered would be miles above what Sesame offered.

HelpWhereIcan

dunstonh wrote: »

I had a visit from a rep from your network and the whilst I would easily go through the £150k mark he couldnt come up with much of a saving over what I pay Sesame. I can see why a number of IFAs would like that package but when you already run your business with independent back office software, independent research, independent factfinds etc. then there is less for them to offer. It got to the point where if I was to move from Sesame to them, I would be going backwards. Even the rep agreed that it wouldnt be right to move and fair play to him. However, if you are currently a low tech adviser then I could see the package appealing to you because of what they offered would be miles above what Sesame offered.

There do seem to be a lot of Networks (and I include the 2 who call themselves a National IFA) targeting Sesame members at the moment. I have had a few calls telling me how they have recruited loads of Sesame members on the back of {Insert Latest Incentive}.

The stage my business is at means I have no intention of switching at all, but a local IFA who introduces to me has been having conversations with all of them in recent months.

The fact of the matter is that, when he looks at what he gets for his money, he has always come to the conclusion to stay with Sesame and this is a largish producer who earns more in renewals than most Mortgage Advisers get in annual income. PS & PR targeted him on their support, practice buyouts etc but still no difference to Sesame for him - especially as he knows I am desperately saving for when he wants me to buy him out

The closest he has got to leaving is by going direct through Simply Biz, but still not enough saving.

I think Sesame target a certain type of adviser, producing a certain level. If you just meet minimum threshold (like me at the mo _pale_ ) they can appear expensive and I suspect that is the reason behind some of the exits. But, when you look at the % loss, Sesame loses far fewer than most.

Even if I have to pay a lump sum this year to meet their minimum charges I will (hopefully won't come to that). I think for the provider access, terms and compliance support we get Sesame have proven themselves and are financially more sound than most.

payless

cooper - you with PS ?

cooper2110

Payless - I am indeed.

TheGreatBear

are any brokers out there actually based in London?!?

It seems like most of you are based up north but it would be interesting to see how people have been affected in the South. Personally, my figures have dropped from last year but i am in my first year with a new company so it was to be expected anyway. Things do seem to have picked up again in the last couple of weeks but maybe this is just another 'dead cat bouncing' - (been reading way too many financial papers!!).

Sorry to hear, so many people moving away from mortgage advise, as i am not ashamed to say that i 'love the job'. Very sad i know

minimike2

Not sad...i love it too

cooper2110

I agree that I don't think it is as much doom and gloom as has been written in this thread. Over the past couple of days, mortgage companies are reducing rates and maybe I'm behind the times, but I can only think of one company whereby they offer a better rate in branch?

I enjoy it.......when it is going well........!!

dunstonh

I dont think things are as bad as the media are making out. I think they are talking it up a lot. Whilst there are some people who have felt the pinch. Others havent noticed it much and its only because the media tell them its bad that they think it is.

The shame of it is that the mortgage adviser cull that is going on at present will not necessarily remove many of the bad ones (as sales people tend to find ways to sell).. It will probably remove more of the good honest ones who are bring true and fair to clients and losing out because of it.

Ian_Griffiths_Halifax

Ian_Griffiths_Halifax wrote: »

A couple of years back I tried to get a proposal to the Government via my local Chamber of Commerce who were useless and so it didn't go anywhere.

I said that it would help FTB's and the market in general, without the Government losing money, if they changed how Stamp Duty was collected/paid.

If they collect Stamp Duty on Selling a property rather than buying, then FTB's won't have to find the minimum £1250 Stamp Duty as it would by paid by the seller.

The Seller would be paying Stamp Duty on the Sale, but would be saving less than on the typical up-sizing Purchase.

Their Seller however would be paying the Stamp Duty etc etc etc.

Then you get to the end of the chain. Usually it's either:

A. A builder (it's built into the sale price anyway)
B. A deceased persons Estate (Not around to miss it)
C. Somebody Emigrating (their income tax, vat etc is lost for good on leaving the Country so why not get something from them before they go)
D. Somebody down sizing (the ones that lose out, but they generally have the equity)

It makes sense to me, but I'm only a Mortgage Broker and what's the betting that if they went down this route they would eventually introduce Tax on Selling AND on buying? :rolleyes:

WOW a blatant rip off of my post on here by the former head of a BS :rotfl:

From The Mortgage Introducer trade magazine.

Call for change to Stamp Duty on sales

9 September, 2008

Former Building Society Chief calls for Stamp Duty to be charged upon the sales rather than the purchases of homes



Ken Culley CBE, Former Chief Executive of Portman Building Society, and former Chairman of the Building Societies Association, calls for the government to immediately stop the present Stamp Duty Land Tax on the purchase of homes and instead impose it on the sale of homes. “By switching stamp duty to sellers, all first time buyers will be totally freed of this significant tax burden. This will help stimulate the present beleaguered housing market. The Government would also not lose any significant tax revenues as the vast majority of sales mirror a purchase.


“In addition to permanently abolishing stamp duty for all first time buyers, it reduces the tax burden for homeowners seeking to trade up, as the tax burden will be based on the lower priced home sale. While homeowners trading down will pay more tax, they will have the benefit of the net proceeds to afford the tax. “The Government’s present stamp duty holiday initiative is misconceived as any benefits will be both little and short lived. Further a detrimental effect is likely when it is reimposed in a year’s time. For an initiative that is likely to cost already struggling taxpayers millions of pounds in lost revenue this move is truly a complete waste of time and money."