We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Mortgage Advice Independent or Not??
rpmortgage
Posts: 5 Forumite
It was interesting from a mortgage brokers point of view watching Martin Lewis appear on GMTV Tuesday morning 24th February 2009. He was talking about people that have fixed rate mortgage products and if it would be good advice to leave the fixed product and opt for a Tracker and he mentioned that it would be good to talk to a ''Whole of Market'' mortgage adviser.
Although the term ''Whole of market'' sounds like a customer would be getting Independent advice in 99% of cases they would not be!
Since the credit crunch there are more and more lenders that will offer customers a better mortgage product if they go direct to the lender and there are some mortgage lenders that do not pay a commision to mortgage brokers for placing mortgages with them.
We now have a situation where the majority of mortgage brokers are caling themselves ''Independent'' or ''Whole of market'' but they are not recommending the direct lender products to their clients or the products from lenders that do not pay them a commision, so how can they be 'Independent''.
Our company has been advising clients since 1996 and allways had pride in being able to call ourselves ''Independent''. When the credit crunch hit we had to change as we did not want to have a situation where we would sit down with a client and recommend a mortgage product for them to say that they had found something cheaper on the internet.
We now charge an upfront fee of £199.00 for our research and can now truly come back with the best products on the market for our custmers even if its a direct product. And we have managed to save one of our clients over £2,500 compared to another so called ''Whole of Market'' broker.
I guess what i'm trying to say is that unless a mortgage advisor is charging an upfront advice fee how can they be Independent, how could an advisor that does not charge a fee recommend a product from a lender that only offers mortgages to clients that go direct, they would earn no income and go out of business.
I have tried to contact Martin Lewis to discuss this but cannot seem to get hold of him, I do feel that Martin should make this clear to the public when he is on TV as he is efectivley recommending that the public speak to advisors that may not be truly ''Independent'' and in my clients case not saving them money actually the opposite.
Martin if your listening please contact us to discuss!
Although the term ''Whole of market'' sounds like a customer would be getting Independent advice in 99% of cases they would not be!
Since the credit crunch there are more and more lenders that will offer customers a better mortgage product if they go direct to the lender and there are some mortgage lenders that do not pay a commision to mortgage brokers for placing mortgages with them.
We now have a situation where the majority of mortgage brokers are caling themselves ''Independent'' or ''Whole of market'' but they are not recommending the direct lender products to their clients or the products from lenders that do not pay them a commision, so how can they be 'Independent''.
Our company has been advising clients since 1996 and allways had pride in being able to call ourselves ''Independent''. When the credit crunch hit we had to change as we did not want to have a situation where we would sit down with a client and recommend a mortgage product for them to say that they had found something cheaper on the internet.
We now charge an upfront fee of £199.00 for our research and can now truly come back with the best products on the market for our custmers even if its a direct product. And we have managed to save one of our clients over £2,500 compared to another so called ''Whole of Market'' broker.
I guess what i'm trying to say is that unless a mortgage advisor is charging an upfront advice fee how can they be Independent, how could an advisor that does not charge a fee recommend a product from a lender that only offers mortgages to clients that go direct, they would earn no income and go out of business.
I have tried to contact Martin Lewis to discuss this but cannot seem to get hold of him, I do feel that Martin should make this clear to the public when he is on TV as he is efectivley recommending that the public speak to advisors that may not be truly ''Independent'' and in my clients case not saving them money actually the opposite.
Martin if your listening please contact us to discuss!
0
Comments
-
I totally agree rpmortgage, brokers are never whole of market as they dont tell you about the direct only mortgages. When I was looking my broker said the best he could find was c&g fixed for 2 years 5.65% but after hours of searching I found a 4.99% direct with the yorkshire. I feel that I could be a mortgage advisor after the amount of research that I have done.
All for nothing as i was purchasing a repo, but apparently someone has offered more, even tho wen it was advertised in the paper last night at the price i offered not the higher offer. I dont really know whats goin on0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.2K Work, Benefits & Business
- 600.9K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards