95% deals disappearing

going2die_rich

Thats good news. It means buyers actually have to learn how to save before buying, showing them just how much money really is. Rather than borrow a ton of it and then find themselves out of their depth.

Personally, I think the minimum deposit should be 20%. If you have to work for it, it'll help put things in perspective.

minimike2

mrstinchcombe wrote: »

Im sorry but I don't see how paying £500 for something you can get for free or even do yourself in this internet age) is good for the customer.

This is because you do not understand the concept.

This is exactly the point I made in my post and exactly why model B is what most advisers work to, despite model A usually working out best for both client and adviser.

Im not going to re-iterate the whole deabate, but some people who are not knowledgeable on mortgages will save themselves a FORTUNE in the long run by getting a suitable mortgage deal through a broker instead of going direct, non-advised and making a horrendous mistake in choice of product and as I said, may actually make more money back than the £500 through a commission rebate. I.E £700 commission = Client has had suiatbale advice and earns £200 from the deal.

mrstinchcombe

minimike2 wrote: »

This is because you do not understand the concept.

This is exactly the point I made in my post and exactly why model B is what most advisers work to, despite model A usually working out best for both client and adviser.

Im not going to re-iterate the whole deabate, but some people who are not knowledgeable on mortgages will save themselves a FORTUNE in the long run by getting a suitable mortgage deal through a broker instead of going direct, non-advised and making a horrendous mistake in choice of product and as I said, may actually make more money back than the £500 through a commission rebate. I.E £700 commission = Client has had suiatbale advice and earns £200 from the deal.

Surely to save the most on a mortgage you need to switch mortgages every few years. £500 each time you do this isn't very cost effective.

I can see why you are trying to scare people into using a broker, its your business, but not everyone is easily swayed.

minimike2

See....you are ill-advised. Why would switching every few years be the chespest option?

What about the average £1k arrangemnt fee from the lender every time? Over ten years, thats £5k. Or you could fix for ten and pay £1k....and you STILL overlook the fact that the £500 most of the time would be offset against commission, so that £1k could become £800, or less, in a lot of cases, so the client is actually reducing thier lenders arrangement fee in effect, by using a broker.

I resent your quite frankly abusive comment about scaring people - but it doesnt matter because you have already proved by saying "Surely to save the most on a mortgage you need to switch mortgages every few years" that you have no idea what you are talking about.

IT_nerd

Gorgeous_George wrote: »

According to the BBC (clicky).



GG

Good?
I think it's high % LTV that caused a lot of this mess.

mrstinchcombe

minimike2 wrote: »

I resent your quite frankly abusive comment about scaring people - but it doesnt matter because you have already proved by saying "Surely to save the most on a mortgage you need to switch mortgages every few years" that you have no idea what you are talking about.

Its not an abusive comment, you gain custom through making people believe you will save them far more than the £500ish outset, which isn't always going to be the case (unless they are incredibly clueless).

I find it hard to believe that there is a mortgage that you can have throughout a whole 20-30 year term that is cheaper than switching! It pays to switch with many things nowadays including mortgages because banks and building societies don't think we will switch (and many don't).

Some arrangement fees are £1000 as you quote but as you know the vast majority are far less than that, there goes the scare tactics again!

mrstinchcombe

"I am calling from your mortgage broker, I can save you thousands of pounds. All I need is your account number and sort code"

herbiesjp

mrstinchcombe wrote: »

Some arrangement fees are £1000 as you quote but as you know the vast majority are far less than that, !

There are also many more schemes with fees over £1,000 :rolleyes:

minimike2

mrstinchcombe wrote: »

Its not an abusive comment, you gain custom through making people believe you will save them far more than the £500ish outset, which isn't always going to be the case (unless they are incredibly clueless).

I find it hard to believe that there is a mortgage that you can have throughout a whole 20-30 year term that is cheaper than switching! It pays to switch with many things nowadays including mortgages because banks and building societies don't think we will switch (and many don't).

Some arrangement fees are £1000 as you quote but as you know the vast majority are far less than that, there goes the scare tactics again!

ROFL. Its like pulling teeth. £1k is about an average arrangement fee these days. The fact is people DONT go down the fee payment route, because they are like you - they think they know everything, but in fact have a lot to learn. Im done trying to explain politely, your abuse has continued in the form of your George Adgdgdgdgwengo post.

The last thing I have to say to you is continue doing what you are doing with your mortgage....if it makes you happy then that is no skin off my nose. Maybe one day you will re-read what I have been trying to explain to you and reaslise that actually it was right and did make sense - but im not going to continue with this now....I will end up being banned....

mrstinchcombe

minimike2 wrote: »

Im done trying to explain politely, your abuse has continued in the form of your George Adgdgdgdgwengo post.

You mistake debate and humour for abuse, my posts are rarely abusive.