Why do people use mortgage brokers?

macaque_2

Ian Griffiths Halifax

You wrote

YOU need to take a hard look at your self and understand how disrespectful you are!

You did not show much respect when you wrote:

What total and utter bollox.

I have said nothing rude to you at all. I have however suggested that your profession uses weasel words to cover up bad advice. The evidence in the Times article tends to support my thesis.

Lifeisbutadream

macaque wrote: »

This is a very depressing response. If you were getting good advice you would be right. The whole point of the article is that you are getting the very antithesis of good advice from mortgage brokers. The mortgage brokers are deliberately steering you away from the best deals for their own benefit.

The combined efforts of the financial services industry and government have reduced our economy to smoking ruins. After all that has happened, why do people remain so trusting? If I was to use a mortgage broker, I would insist on written confirmation (free of weasel words) that they had proposed the best value deal? I suspect that such a request would be very revealing.

Well I know for a fact that my mortgager broker had a nightmare trying to place me with a mortgage, so I dont think I will make his life any harder by insisting that he give me a written statement!

I am also capable of saying yes or no to whatever he wants to offer me.

olly300

macaque wrote: »

This is a very depressing response. If you were getting good advice you would be right. The whole point of the article is that you are getting the very antithesis of good advice from mortgage brokers. The mortgage brokers are deliberately steering you away from the best deals for their own benefit.

Lots of mortgage brokers (and I can now include my own) don't actually sell you something if you are on the best deal for your circumstances already.

macaque wrote: »

The combined efforts of the financial services industry and government have reduced our economy to smoking ruins. After all that has happened, why do people remain so trusting? If I was to use a mortgage broker, I would insist on written confirmation (free of weasel words) that they had proposed the best value deal? I suspect that such a request would be very revealing.

Also as with builders, plumbers, hair dressers, accountants, solicitors etc you should go on the personal recommendation of someone you trust. Particularly if you know that trusted person acts like rottweiler towards specialised people who do them wrong.

stevetodd

Lifeisbutadream wrote: »

I see your point, but having done both (I used to arrange my own) I am much happier using one (at the moment) because I simply do not have time to spend ringing round or researching.

For our last mortgage I bought either 'what mortage' or 'which mortgage' (I forgot) spent about 20-30 mins looking at it, then selected Scarborough Building Society's BOE tracker + 0.39%. Including the call it was less than an hour to get the process under way. Obviously I spent a little time checking there was nothing cheaper via the net, but not too long.

Lifeisbutadream

stevetodd wrote: »

For our last mortgage I bought either 'what mortage' or 'which mortgage' (I forgot) spent about 20-30 mins looking at it, then selected Scarborough Building Society's BOE tracker + 0.39%. Including the call it was less than an hour to get the process under way.

Lucky you.

Unfortunately because we are self-employed the process is slightly more complex than that - yes we used to be able to pick and choose which mortgage we wanted, but unfortunately now we only have a few to choose from and I am happy for someone else to do all the messing about for me.

stevetodd

Lifeisbutadream wrote: »

Lucky you.

Unfortunately because we are self-employed the process is slightly more complex than that - yes we used to be able to pick and choose which mortgage we wanted, but unfortunately now we only have a few to choose from and I am happy for someone else to do all the messing about for me.

I am also self employed

Bodegroes

I used Mortgage Genie because he paid me half his comission! Had I gone direct, I would have had the same deal with no comission. No brainer.

RomansProperties

I am a Landlord and have used my mortgage broker a lot over the years.
They provide advice and deal with all the application process.
I understand they make their fees out of doing it but I have enough to deal with on a day to day basis.
They set up my residential mortgage which is now at 1.49% Abbey and I have approx 30% of mortgages on Tracker deals which have dropped down nicely.
The bulk is fixed as I like more certainty.
Also a lot of my property is terace houses divided into flats so these were more difficult to mortgage compared to a normal house.
I think its very much down to the person but I dont mind paying for advice that saves both time and money.
My broker has also put me in touch with other services which have saved me a lot of money.
My buildings cover was previously running at £5,000 until they put me in touch with an insurance broker who got me a policy for £3,200.
A nice afternoons work emailing over the lists of properties.
Just my thoughts

PasturesNew

On my first (SO) house, I went to a broker and had a special requirement.

On my second house, I went to a broker because I was a contractor, working 100 miles away from where the house was and didn't have the time to even start to contact EVERY lender to make enquiries as to whether they'd give me a mortgage, how much for etc.

A broker is doing it all day every day and know what they're looking for based on what you say your needs are.

The Internet hasn't always been there for this stuff to be looked up, compared etc.

As for these "deals", I've never done that. I had a 25 year mortgage, I paid money each month, job done.

macaque_2

Lifeisbutadream wrote: »

Well I know for a fact that my mortgager broker had a nightmare trying to place me with a mortgage, so I dont think I will make his life any harder by insisting that he give me a written statement!

And you know that because he told you so?

How much trouble would it be for him to confirm that he has given you the best value product?

There have been countless examples of miss-selling in recent years and the regulatory bodies seem to fail us every time. These problem won't go away until people take matters into their own hands. A good starting point is to get written confirmation that the advice given represents best value. If the adviser has served you well, everything will be fine and he/she will be happy to sign the paper. If not, you have to ask yourself why.

I don't want to be critical but I do think you are being far too trusting.