How are Mortgage Advisers surviving?

koexelek

naijapower wrote: »

Thanks. I have re-read it. My error. Apologies.
It seems i was deceived by the text colour as it identical to signature for Koexelek OR maybe i am due for eye test..lol

it confused me too

confused31_2

certain jobs thrive in times like this my wife works for a insurace brokers, and the amount of claims they are dealing with is unbelievable, people always use insurance, but it amazes me has i would and never have dealt with a broker.

I have also just ordered a new car and i was pleasently surprised how many other people were looking to buy when we was, the salesperson told me they had been very busy, whether its the truth we will have to wait and see.

I know there are some bargains out there i used a car broker and got the dealer to match, and its saved us nearly 5000 pound of the list price.

I think it will start to pick up about september time, the only worrying thing is when it does pick up, i think the interest rates will go back up as quick has what they come down, leaving a lot of people with negative equity stuck on hgh variable rates.

thats probably another reason mortgage advisers are not busy, people have no eaquity in their properties and have no choice but to go on the variable rates, and has they are so low now, in the short term it is good for them

Conrad

naijapower wrote: »

I hear the network called Network Data have lost their FSA authorisation. My close mate is with this network and now has to move.
He is thinking of packing up cos no mortgages is coming thru the door and he has to pay monthly fee of £100 even though no business is sold

I've long argued one does not need a network. Being directly authorised is far better for me, I am in full control. Compliance is simple enough - I get free compliance health checks and any help I require (such as document design), simply by using Premier Mortgage Services to submitt business under. They take a minimal amount of the proc fee, but tend to have negotiated higher proc fees anyway.

In return I get to use the considerable compliance srvices offered by Bankhall.

Conrad

DIVERSIFICATION - not for me. I firmly believe one should stick to thier core business expertise and with luck and hard work all will be well.

I do charge fees, often fairly hefty too, but people are happy to pay as I get the job done. Typically a client will come to me after having been turned down elsewhere. I have no magic, but I do know criteria inside out - I write everything down in a huge bible when reps visit me, and it seems this gives me an edge. Reps tell me all other brokers do not take such notes and file them in a structured manner, so the brokers forget key little know gems of info.

Also it can take me days, even weeks to place a case, and it might involve 3 full applications but I get there in end.

dunstonh

I've long argued one does not need a network. Being directly authorised is far better for me, I am in full control. Compliance is simple enough

The move from networks to directly authorised has ground nearly to a halt from what i understand. The RDR proprosals will effectively kill off most directly authorised small firms due to the increased capital adequacy requirements. The FSA have stated that there will likely be a regulatory dividend for firms using compliance companies/networks. The suggestion was that instead of having to have £50k in the bank if you are directly authorised, you will only have to have £10k or you may be able to have surplus assets. (dont know how this applies to mortgage only firms though).

My "external" view of mortgage only networks (or networks where mortgages are the primary business) is that there are far too many of them. Many are a complete waste of space and money and not financially strong enough and dont give you the service you pay for. Almost a repeat of the IFA networks about 10-15 years ago.

koexelek

confused31 wrote: »

thats probably another reason mortgage advisers are not busy, people have no eaquity in their properties and have no choice but to go on the variable rates, and has they are so low now, in the short term it is good for them

that's the main problem i personally am having

the remortgage market is effectively dead above 75% loan to value.
The fixed rates jusr aren't good enough to tempt the borrowers of the low svr's either.

naijapower

koexelek wrote: »

that's the main problem i personally am having

the remortgage market is effectively dead above 75% loan to value.
The fixed rates jusr aren't good enough to tempt the borrowers of the low svr's either.

Yes. very true. Remortgage mkt is dead and possibly buried.
Even when the base rates begin to creep up, negative equity would still exist as house prive would only increase marginally.
This is when repo would hit sky high...sorry to be a prophet of doom

silvercar

When house prices start to creep up, lenders will introduce products that will allow remortgages with neg equity (or at least high LTV) where the borrower is not increasing the mortgage - that is what happened in the last crash.

As this will happen at around the same time as base rates start rising, business should improve for you guys.

naijapower

Very useful info. I wasnt in this country during the last crash. I sincerely pray for the best as i am in the same shoes. Bought new build just over 2 years and now in negative like most peeps...