Mortgage Brokers Fee's

Qual123

thats a little unfair Ian, i wasn't slating you at all. but i am having a pop at the brokers who earn the commission levels that i do but feel they need to add a £500 fee just because the mortgage is self cert or sub prime.

IN MY OPINION this is being unfair to clients. I know we all want to earn a living but i truely feel that i earn much better by being fee free. It annoys me greatly that i HAVE to offer a fee option (sesame) and i wish i didnt have to.

Ian_Griffiths_Halifax

Qual123 wrote: »

thats a little unfair Ian, i wasn't slating you at all. but i am having a pop at the brokers who earn the commission levels that i do but feel they need to add a £500 fee just because the mortgage is self cert or sub prime.

IN MY OPINION this is being unfair to clients. I know we all want to earn a living but i truely feel that i earn much better by being fee free. It annoys me greatly that i HAVE to offer a fee option (sesame) and i wish i didnt have to.

I wasn't having a go at your comments. I thanked you for your response!

dunstonh

It annoys me greatly that i HAVE to offer a fee option (sesame) and i wish i didnt have to.

Sesame's main business area is IFAs. So, you are going to get a focus on being independent. Hence the fee option being a requirement.

It will be interesting to see what Sesame say post RDR when it looks likely that IFAs will have to be fee based or hybrid fee based only rather than commission. Will they extend that to mortgages? Probably not but if the FSA do move mortgage advisers to full authorisation (which looks likely) then I suspect they will extend much of the RDR to mortgage advisers in a second stage roll out.

Conrad

Ian_Griffiths_Halifax wrote: »

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.

I'm thinking of getting back into life. Are you advised or info only on the life side? Which companies pay drip?

Conrad

Qual123 wrote: »

thats a little unfair Ian, i wasn't slating you at all. but i am having a pop at the brokers who earn the commission levels that i do but feel they need to add a £500 fee just because the mortgage is self cert or sub prime.

IN MY OPINION this is being unfair to clients. I know we all want to earn a living but i truely feel that i earn much better by being fee free. It annoys me greatly that i HAVE to offer a fee option (sesame) and i wish i didnt have to.

To follow your logic to it's only conclusion, we would have to say on remuneration the following apply;

1) J Ross / Billy Connely / R gervaise et al are rip off merchants

2) Good lawyers should charge no more than poor / average lawyers

3) Maddona should charge no more than the bloke who sings in my local

4) Top surgeons should charge no more than average surgeons

5) Decent builders should charge the same as shoddy builders


Over my 20 years in the business, some of which was spent as an employed regional manager I found ALL brokers think they deliver as good a service as one another (just as 99% of us think we are good drivers - even those that pull onto a motorway at lower speeds than the prevailing traffic so causing the 'slow' l;ane drivers to slow unnecesarrily), however, actual delivery outcomes vary hugely.

dunstonh

I'm thinking of getting back into life. Are you advised or info only on the life side? Which companies pay drip?

They all do. However, you need to have a non-indemnity agency with some providers as well as an indemnity one. Others will let you choose on the single agency.

Benefit of drip is no clawback and over the 4 year period you get paid more than if taken on indemnity. Plus, it provides and income stream during the quiet months and you dont get carried away spending money that is effectively loaned to you.

Ian_Griffiths_Halifax

Conrad wrote: »

I'm thinking of getting back into life. Are you advised or info only on the life side? Which companies pay drip?

I advise and as far as I'm aware every company will pay on the drip if you ask.

payless

Yeah, although if you are part of a network or club - some make it more difficult - as they prefer their money upfront.

same goes for GI don't take the 2 or 3 yr upfront stuff.

Miss_Neo

Hello,

I've been trying to follow the threads about charging a fee or not. I was wondering where to look for a whole of market advisor? My boyfriend and I would like to part buy part rent a new build property in Harrow. I have a bad credit history with defaults against me but my boyfriend has a good credit history. Any advise would be much appreciated.

JAM1376

Oh heck, what have I started? I just wanted to know that I wasn't being ripped off and, has someone has said, I'm just more confused than ever!!!

I appreciate that you guys know all the in's and out's of these things but I haven't got a clue. I wasn't sure where to start looking for a broker and just used the 'find a professional' thing in the mortgage write up on here. Now I have found one, I just wondered if he seemed 'reasonable'.

If I meet him next week (he has not called me yet but he is on holiday), what do I need to ask? He has said he is whole of market. Is there anything else?

Or can anyone recommend a broker in the east manchester area? Or shall I just stick with this £250 man.

Oh, and natural mortgage solutions have sent me their news letter. Are they any good?

Any advice??????????????

Thank you for all your comments so far, even if I get lost in them!! :beer: