Mortgage Brokers Fee's

payless

Ian/Qual.. yes my average mortagge size is also above average , never deal in the adverse stuff, so always attract the lower end % proc fees

Life/ GI - take it on the drip = No clawbacks . Indemnity commission is just an expenive loan at 9-12%pa.

Ian_Griffiths_Halifax

payless wrote: »

We all haver own own business models - but don't think its good to knock those that are charging a reasonable fee NOR to knock the service levels of those that don't charge when we don't know anything about it .

Exactly. Everybody thinks that their business model is 'the right one' and really it is down to location and average deal sizes as to whether or not you 'need' to charge a fee.

Ian_Griffiths_Halifax

payless wrote: »

Ian/Qual.. yes my average mortagge size is also above average , never deal in the adverse stuff, so always attract the lower end % proc fees

Life/ GI - take it on the drip = No clawbacks . Indemnity commission is just an expenive loan at 9-12%pa.

I've started taking all larger Life commissions on the drip and smaller ones on Indemnity. I've only got back into doing Life business in this last year or so and intend to go onto being paid on the drip completely.

ado

payless wrote: »

Of course there's still those out there charging likes of £995, £1995, or even 3-4%

I used to work for a broker which charged 1.95% of the mortgage balance, in addition they used to sell a huge amount of single premium ASU, used two fixed rate and relatively high fee solicitors, worked from a panel and had a couple of other little ploys which always ended up increasing the clients mortgage balance. At the time I was quite happy to work for them as I didn't have any other brokerage experience and quite frankly financially I did very well out of the job. Since then I've worked for a company which doesn't charge a fee and do the exact same job as my former company but offer value for money as there is no fee, whole of panel, a VFM solicitor and no mortgage balance increases unless required by the client. I earnt a lot less working for the latter but on reflection I felt a lot happier and felt much more honest about the service I offerred.

Ian_Griffiths_Halifax

You have to be able to sleep at night and if you know that at the end of the day you've done a good job for your clients and they will thank you for it, then it's a job well done.

There isn't a single one of my clients who I've seen in all my years, that I couldn't say hello to in the street.

Leon_W

As soon as a broker fee is mentioned in any post you all go off half cocked into the usual no fee/fee paying argument which is becoming really quite tiresome.

If you actually took the time to read the OP post properly you can plainly see that there is not half as much information as is actually needed to give an informed opinion either way.

If the mortgage balance is small then there is obviously a case for charging a fee (and £250 sounds reasonable), it might also be a difficult case that requires more time spent on than normal. But rather than gently get this information from the OP first AND THEN give a reasoned opinion, it decends into the usual tit for tat.

I think all you achieve with this nonsense is to frighten people off.

Regards

By The Way : Self Cert Mortgages. I can't see how you've lasted 3 years in this business (your words), as that is the most completely un-compliant financial promotions website I have ever had the miss-fortune to set eyes on. Dump it and Dump it quick.

Ian_Griffiths_Halifax

Well put Leon and you're completely correct. I'm guilty of it my self as I may not have charged a fee if it was a big enough proc fee. I simply applied the situation to my normal case size and I can assure you that if that were the case, i'd not do the mortgage.

arkie

Qual123 wrote: »

Payless is totally right, If you write 1 good case a week (mortgage, CIC or income protection) you will earn ok, its taken me a long time to build my client base but it is paying me back now.

yes thats it write the associated products take the money upfront, (Loan it in other words) and hold on tight so you do pay it back

arkie

The problem all us brokers are going to have is in the end , lenders will stop paying proc fee's , they have reduced them over the last year, life commissions etc have also dropped, so the broker who is SCARED to charge a fee for their professional service is a broker who will not be in this industry in the 2 years. Charge a fee , we are not a charity, we have overheads to cover, we have food to put on the table.

dunstonh

Taking indemnity commission in a period like this is very risky. During the last house price price/recession I knew a number of advisers that lost a lot of money due to clawbacks. One had so many he lost his home. He had used indemntiy in the good years and spent it and couldnt handle the clawbacks in the bad years.