An Open Letter To Mortgage Brokers.

EdInvestor

minimike2 wrote: »

But you MUST be qualified AND regulated to offer "advice" on mortgages.

Martin is neither.

Martin doesn't offer "advice".:rolleyes: He offers journalistic information and opinion.

Chez_Guevara

dunstonh wrote: »

I had a life company rep visit a few months back about a new product. After letting me know the features, she went on to give the commission terms. I said I didnt care as it was the features and terms that mattered. Her response was that most IFAs said that but most mortgage advisers didnt want to know the features, just what the commission was.

Can't speak for most mortgage advisers, but only for myself. The only reps that try that on with us are the ones who sell Accident, Sickness & Unemployment policies - and that's a throwback to the door-to-door sales techniques: "John at no 5 and Margaret over at 17 think this policy is great"

It's the old 'are we salesmen or are we advisers' ploy. Whilst we work on a commission basis, it's hard to see where the lines are crossed. And then you talk about fees... but there's always someone willing to do it for 'commission only' or the banks saying 'we don't charge fees', which makes it an uneven playing ground. Don't know what the answer is, to be honest.

taxi73

Death threats to Martin...there was no need for that and it just shows up the bad apples amongst the brokers.
I have used a mortgage broker for my mortgage both for the original mortgage and the subsequent remortgages.He has always listened to what I require and come up with the best deals.I have never had to pay him any fees but if I needed to I would've done as he has always got me very good deals.I'm on a lifetime tracker now and will probably not need to use him again.He is worth his weight in gold.
I feel sorry for the lack of business for the genunely good brokers but have no sympathy for the brokers that are out to sell customers mortgages that they don't really want just so they can make a larger commission.I have nothing but contempt for those that are treating Martin awfully.
The recession isn't his fault...afterall a lot of brokers and banks pushed liar loans and it'sall coming back to bite people on the bum.
The amounts the first mortgage broker was going to put through for me to borrow was terrifying on my income and would've been unaffordable.So I went to another broker (the honest one I've used ever since)....
The honest ones on here that give there time are a great addition to the site vand I don't see why everybody can't work side by side.

minimike2

EdInvestor wrote: »

Martin doesn't offer "advice".:rolleyes: He offers journalistic information and opinion.

And Im sure the millions of people who listen to him see it that way too. :rolleyes:

payless

dunstonh wrote: »

To be honest and frank and this will irritate some mortgage brokers, I have been concerned that there are too many low skilled, commission hungry, layabouts on the mortgage side that are damaging reputations that had been improving. IFAs have suffered with sales reps, salesforces and those joining from closed salesforces but failing to upskill. However, mortgage advisers have suffered with an influx of greedy idiots who dont care about the job. These people damage the reputation not only of other decent mortgage advisers, but all other adviser types as well as the public often cant tell the difference.
.

As mortgage broker unfortunately - I have to agree with the above , there are a wide boys in the industry - some employed ( or were before the crunch) by the "national salesforces" and others running there own business . I've been on seminars and roadshows , and the way I hear some brokers talk about how they treat their clients are dreadful.

the big players though always make sure that there backs are covered.

Perhaps its time RDR was introduced for mortgages - greater level of qualification , and products priced from providers without in-built commission ( therefore priced cheaper than direct ) but with the option for brokers to charge either direct or as a loading.

lethal0r

I never said it was an easy job. My point is that you can become a mortgage broker in a few months, with a little extra knowledge and that a broker is not some sort of mortgage sage who can offer a level of advice unparalled by non-brokers, as some on here seem to think.

Martin always qualifies the advice he offers and always says speak to a broker as well!

Takes years of experience to become a " mortgage sage" !... too many big brokers are happy to let new advisers just go through the motions on the end of a phone- although does not do too much harm in most cases ... but whether its ultimately the best is really unknown.

koexelek

payless wrote: »

As mortgage broker unfortunately - I have to agree with the above , there are a wide boys in the industry - some employed ( or were before the crunch) by the "national salesforces" and others running there own business . I've been on seminars and roadshows , and the way I hear some brokers talk about how they treat their clients are dreadful.

.

There seem to be two ways a broker can operate..

1) Fleece the customer for as much as you can on a one hit basis, and hope they never catch up with you

2) Treat the customer with the same level of care you would give to your own mortgage, always be 100% honest( even if it costs you money) and rely on their continued loyalty and referrals.

I am firmly in the second category,but I know quite a few brokers in category one, who earn far more than I do.

I can sleep at night though

dunstonh

The RDR should be extended to mortgage advice. After all, the RDR is about raising standards and why should mortgage advisers be exempt from that. However, part of it is indirectly with the removal of indemnity commission. Many of these wide boys rely on that and it will probably see the end of some of them as they wont want to stick out the 4 years or so to get paid.

Leighthal

Martin,can you Sue?

MSE_Martin

Just to say I've updated the first post to answer some questions.

maveli

Looks like the death threat really worked. Martin's update got 'GO TO BROKER' in every paragraphs.