Mortgage adviser fees

Loobysaver

Ian_Griffiths_Halifax wrote: »

At the end of the day you need to feel comfortable with the person you are dealing with and while their earnings from your case might only be around £150 from the lender and £150 from you, they may be expecting/hoping that you will do any protection (Life Assurance etc) with them, which will increase their earnings for your case.

If you need the protection, then do let them quote for you as they are providing a very cheap service and need to make a living somehow. Just think though:

Do you NEED it?
Do you WANT it?
Can you AFFORD it?

If the answer to any of these is NO, then don't take it.

Thank you all, you've been very helpful.

I can't see them making much money from me re: life assurance etc

I reckon I only need basic life assurance to clear the mortgage if anything happens to me and that should only cost about £6 a month!

Ian_Griffiths_Halifax

Are you single with no kids? If so you probably don't need Life Assurance, but consider Critical Illness or Income Protection.

Even if it is only £6 a month, it's still worth doing and reasonable top up in earnings for the Adviser.

Ian_Griffiths_Halifax

So Payless, now knowing the facts and being able to guess the level of earnings for this case, would you think it would be worth it to a non-fee charging Broker to do the case?

payless

If within a 30-40 minute drive I would do it -
( Fees free if it was based on " broker avialable deals-... I would however offer to include research on direct deals for a research fee , refunded if commission earning mtg arrange )

More so as it was refferal

( back to your McDonald's post - they don't decline a sale of a 59p burger - as you never know what comes off it- a friends children's party booking ? )

Loobysaver

Ian_Griffiths_Halifax wrote: »

Are you single with no kids? If so you probably don't need Life Assurance, but consider Critical Illness or Income Protection.

Even if it is only £6 a month, it's still worth doing and reasonable top up in earnings for the Adviser.

Hi, I'm a single Mum with 2 children at school age.

Before me and my ex split up we had mortgage life protection and he had redundancy insurance and life assuance as he was the main earner.

Ian_Griffiths_Halifax

Loobysaver wrote: »

Hi, I'm a single Mum with 2 children at school age.

Before me and my ex split up we had mortgage life protection and he had redundancy insurance and life assuance as he was the main earner.

Then consider what would happen to the kids if anything were to happen to you. Would they go to their father or would they go to your parents etc. Does the mortgage need paying off? Do you just want to make sure that they are looked after? Talk this over with the adviser and make a Will.

Also consider redundancy cover for your self.

Ian_Griffiths_Halifax

payless wrote: »

If within a 30-40 minute drive I would do it -
( Fees free if it was based on " broker avialable deals-... I would however offer to include research on direct deals for a research fee , refunded if commission earning mtg arrange )

More so as it was refferal

( back to your McDonald's post - they don't decline a sale of a 59p burger - as you never know what comes off it- a friends children's party booking ? )

McDonalds have people queuing up to hand money over and price their products to make a profit on anything they sell.

Arranging a mortgage will generally cost more than the earnings in this case unless there are additional sales.

£10-30 fuel depending upon 1, 2 or 3 meetings.
Telephone £10
Office space %
Staff wages %
Paper £1
Postage £2
Travel Time £? X 1,2 or 3 return trips
PI insurance
PL insurance.
Appointment time 1st appointment 1 1/2 hours, 2nd appointment 1 1/2 hours, 3rd (?) appointment 45 mins

It all adds up and while I have done cases like this for nothing in the past and lost money and got referrals etc, in the current climate most brokers couldn't do that case without charging a fee.

silvercar

I think £150 for someone that has been recommended and you feel comfortable with is good value.

It all adds up and while I have done cases like this for nothing in the past and lost money and got referrals etc, in the current climate most brokers couldn't do that case without charging a fee.

Interesting, in tough times I thought prices would go down not up. You haven't really "lost money" of you weren't doing anything else fee-earning in the time. If you have spare capacity, any work is valuable.

Ian_Griffiths_Halifax

You are right in one sense Silvercar, in that any work is valuable, but why take business that is going to take time and effort for less income than the outlay?

silvercar

Ian_Griffiths_Halifax wrote: »

You are right in one sense Silvercar, in that any work is valuable, but why take business that is going to take time and effort for less income than the outlay?

You don't, unless outlay includes costs that you would be spending regardless eg office costs, or unless the recommendations that may come from it may be worthwhile.

I have a friend who has such a wide and varied circle of contacts that anyone should be working for him for nothing, just for the openings. This doesn't happen because they can't realise it at the offset, but now he even has a Lonodon plumber that drops everything for him.