Why do people use mortgage brokers?

macaque_2

Ian_Griffiths_Halifax wrote: »

The majority of your post makes sense Conrad, but this bit troubles me.

Somebody could have a straight forward case, but may need help and advice because they don't know what they are doing. After a couple of time of using a Mortgage Broker they may then have the experience, time and confidence to do it them selves.

The conclusion I draw from the Times article is that less experienced people may be well advised to steer clear of brokers.

"In every case, the brokers gave us details of tracker and fixed-rate deals with higher rates and larger fees than the best direct-only deals."

This conclusion concerns me and has a strong whiff of predation by unscrupulous advisors.

Ian_Griffiths_Halifax

Ah, but that pre-supposes the broker is in a position to give sound advice.
Whilst your good self would clearly be in such a position, there are truck loads of grunts that have merely been on a few weeks training, and more likely to read the Sun than the Times, and these 'sales people', often straight out of college are definitely not qualified to give such advice.

We wouldn't for example expect to find a chef that had done nothing more than say 2 months training, in posession of a Michelin Star.
We wouldn't allow our loved ones to go under the knife where the 'Surgeon' had merely attended a weeks training!

Ian, like me you must attent the odd seminar where these shiny booted, Sun reading, chain smoking types are present.

I stopped going to "Roadshows" and the likes a while ago. I find that they are generally attended by people looking for free pens and golf T's.

I posted on another thread (may even have been this one but I can't be bothered looking) that the industry could really do with some form of Apprenticeship, just like the Building Trades used to. People cannot be expected to leave "school" with a fresh qualification and not have a Mentor, with time served experience, watching over them.

I really don't think that people should be allowed to leave Bank or Building Society employment and simply set up as a broker, as they don't have experience on assessing the clients needs. They've come from a Sales background and not a Consultancy background. Also, they are only used to looking at the one lenders products, not numerous lenders.

Ian_Griffiths_Halifax

macaque wrote: »

The conclusion I draw from the Times article is that less experienced people may be well advised to steer clear of brokers.

"In every case, the brokers gave us details of tracker and fixed-rate deals with higher rates and larger fees than the best direct-only deals."

This conclusion concerns me and has a strong whiff of predation by unscrupulous advisors.

How many times do you need to be told that their research was flawed?

macaque_2

Ian_Griffiths_Halifax wrote: »

...the industry could really do with some form of Apprenticeship, just like the Building Trades used to. People cannot be expected to leave "school" with a fresh qualification and not have a Mentor, with time served experience, watching over them.

When I saw this, the word Fagin immediately sprang to my lips (no offence meant).

Ian_Griffiths_Halifax

macaque wrote: »

When I saw this, the word Fagin immediately sprang to my lips (no offence meant).

Did Fagin teach his pupils well?