Mortgage advisor - new to this site

Ian_Griffiths_Halifax

You get a lot of smug idiots on here who berate the Northern Rock Together Mortgage. People who often don't have a clue about what they are taking about and think that anybody who took one out was in negative equity fromthe start.:shocked: :rolleyes2 Not helped by incorrect statements made by a self proclaimed Money Saving Expert.

I did a number of Together Mortgages and these clients, more often than not, moved house and REDUCED outgoings, or through consolidation, could take the mortgage over a much shorter term than if they didn't do the consolidation.

These clients aren't in any more negative equity than any other person who took a 95% mortgage within the last 2 years, but I can only think of a couple I've arranged within that time.

Ian_Griffiths_Halifax

Just for the record koexelek, I know you are new to the site, but you'll find that neverdesparegirl isn't a smug poster, she's usually very knowledgeable and is an asset to the site.

koexelek

Ian_Griffiths_Halifax wrote: »

Just for the record koexelek, I know you are new to the site, but you'll find that neverdesparegirl isn't a smug poster, she's usually very knowledgeable and is an asset to the site.

Fair point.

I respect everyones' opinions, even if I have a different personal view. Healthy debate is always good , and I'm really glad I've joined the forum

payless

koexelek wrote: »

If you want to borrow 50% loan to value, have an exemplary credit rating and want to borrow well within your income multiples, you probably don't need the services of a broker at the moment.
Thankfully ( from a broker point of view) cases are not always as simple as that though, so many clients do need our help .

Actually that describes my typical client - yes lost some to direct deals ( usually as advised by me).. but even this typical client type often still wants advice

happybroker

I've not had any issues with dual pricing (touch wood) and find my clients value the quality of service and advice that comes with using a broker, "you don't get the feeling you are just a number" said one last week.

If the bank's keep on with the dual pricing the level of non advised business they do will go through the roof which will surely set the odd alarm bell ringing at the FSA. Once a couple of the banks have been turned over you would think they would back peddle on the issue.

I think the together mortgages had a place but should have been used as a tool of last resort, it was always a risky strategy. Ian mentions people "who often don't have a clue what they are talking about..." thinking that any one who took one was in negative equity from the start but I would thinnk that a 125% debt secured on a house would by definition mean they were in negative equity.

I am aware that there are ways around the "loan" element of the deal when trying to remortgage but fact is this...people borrowed more than the house was worth in order to buy it right at the top of the market.

I only post this to encourage debate and don't intend to offend, the high ltv mortgage is a subject worth debating

Alias_Omega

I went too see a mortgage guy today,

his fee is from the mortgage company, nothing from us. As were only borrowing around about £40,000 his fee is a little less than £150..

nice to see that ive found an all of market man, for not alot of cash, who we both think is a nice guy.

he said that its ok, we may recommend a friend who has £200k next time..

koexelek

Alias_Omega wrote: »

I went too see a mortgage guy today,

his fee is from the mortgage company, nothing from us. As were only borrowing around about £40,000 his fee is a little less than £150..

nice to see that ive found an all of market man, for not alot of cash, who we both think is a nice guy.

he said that its ok, we may recommend a friend who has £200k next time..

That's exactly the way I work. Once you start looking at your clients with pound signs in your eyes, you are on a slippery slope.

I have often carried out a lot of research and work for clients without being paid a penny, but those same clients often do refer lucrative business to you, or come back to you with transactions where you can earn money.

Ian_Griffiths_Halifax

happybroker wrote: »

I think the together mortgages had a place but should have been used as a tool of last resort, it was always a risky strategy. Ian mentions people "who often don't have a clue what they are talking about..." thinking that any one who took one was in negative equity from the start but I would thinnk that a 125% debt secured on a house would by definition mean they were in negative equity.

I sincerely hope you have a backup career if you think this is the case! :eek:

As a broker you should know that this isn't the case.

happybroker wrote: »

I am aware that there are ways around the "loan" element of the deal when trying to remortgage but fact is this...people borrowed more than the house was worth in order to buy it right at the top of the market.

Some people did, but not all. The Together mortgage had been around for many years prior to the peak of the price rises. Off the top of my head I'd guess around 5/6 years.

happybroker

Ian_Griffiths_Halifax wrote: »

I sincerely hope you have a backup career if you think this is the case! :eek:

As a broker you should know that this isn't the case.
quote]

I'm still writing 20 deals a month Ian so backup careers don't really come into mate.

You fail to explain why some body who owes more than their house is worth is not in negative equity.

To help you with your explanation here is the official description of the meaning of the phrase "negative equity";

"Negative equity is a term used to refer to when the value of an asset used to secure a loan is less than the outstanding balance on the loan. A person holding negative equity is said to be upside down."

please enlighten us Ian, I am sure every adviser who gives their time to help people on this site would be intelectually enriched if you could share your wisdom.

koexelek

happybroker wrote: »

Ian_Griffiths_Halifax wrote: »

I sincerely hope you have a backup career if you think this is the case! :eek:

As a broker you should know that this isn't the case.
quote]

I'm still writing 20 deals a month Ian so backup careers don't really come into mate.

You fail to explain why some body who owes more than their house is worth is not in negative equity.

To help you with your explanation here is the official description of the meaning of the phrase "negative equity";

"Negative equity is a term used to refer to when the value of an asset used to secure a loan is less than the outstanding balance on the loan. A person holding negative equity is said to be upside down."

please enlighten us Ian, I am sure every adviser who gives their time to help people on this site would be intelectually enriched if you could share your wisdom.

I think he was making the point that only 95% of the Together mortgage is usually secured, the rest being unsecured ?