Martins View On Using Mortgage Brokers...

MortgageMamma

ROFL John. initial deception documents - again ! x

Mr_helpful

MM
It is much better named as an Initial Deception Document even though I do it tongue in cheek. Without propper explanation it can confuse the client to hell. Another gem of regulation and a wonderful hypnotic sales tool that lulls the clients concious mind in to the belief of transparency and honesty, whilst the adviser can bypass the critical mind that has noticed the whole of market mortgages bit and get away with being single provider for all else. The great thing is that the client will go away and recommend you as a completely independent adviser to his friends when by careful but not illegal use of English you are anything but.
Put simply it is a salesmans dream but for all the wrong reasons.

MortgageMamma

Mr_helpful wrote:

MM
It is much better named as an Initial Deception Document even though I do it tongue in cheek. Without propper explanation it can confuse the client to hell. Another gem of regulation and a wonderful hypnotic sales tool that lulls the clients concious mind in to the belief of transparency and honesty, whilst the adviser can bypass the critical mind that has noticed the whole of market mortgages bit and get away with being single provider for all else. The great thing is that the client will go away and recommend you as a completely independent adviser to his friends when by careful but not illegal use of English you are anything but.
Put simply it is a salesmans dream but for all the wrong reasons.

If I didnt know you so well I'd think you were joking.

Mr_helpful

Its a bit like my old bosses presentation to his clients of a Knowingly False Illustration (KFI) when selling endowments which he did proficiently. This is yet another salesmans dream especially when used with a Ficticious Find.
Despite all the best efforts of the FSA the world is your oyster if you want it to be as far as getting the customer to sign up for something they didnt want. I think recently they almost admitted that themselves.

MortgageMamma

I guess covert hypnosis is a classic example of that sort of underhand behaviour! Its amazing the sales skills and persuasion tactics some of the old school advisers use - I know a local IFA who uses these methods!

pji2153

AndrewSmith wrote:

Martin,

Thank you for this post, I think it was needed as just of late there have been a few posters trying to imply that our motives are less than honourable.

From a personal point of view Martin you already know my motive and reasons for posting here, all of which fit in with the ethos and rules of this site, of which I am a loyal supporter. It is a welcome release to have an enviroment to give help freely and without obigation either way.

I will continue to support your site and, as long as you permit, will continue to help those who post here. After all I wouldn't have been thanked so many times in a short period without doing some good

Andy

we have recently gone through a re mortgage All finished we found we still had the mortgage deed as we had not sent it back as we disputed the advise we had and the mortgage offer as it would cost us a lot of money in early repayment charges. basically it was of no benefit to go ahead financially.
we have since found that the solicitor received the mortgage deed signed by myself and husband. Very confused we asked who witnessed our signatures
we do not know the named person who signed and does not or has ever lived at the address stated.
we have written to the broker fsa and involved the police.
a solicitor has agreed we have a strong complaint.
If you have any advise we would be grateful.
we seem to be going around in circles.

suepaul

i am in the process of purchasing some land to build but have yet to sell my property
any tips on short term bridging loans i am looking to borrow 150000
with thanks

Chris_the_IFA

Hi all,

This is my first post on here....

I'm an Independent Financial Adviser - meaning I advise on ALL aspects of financial planning from mortgage advice through to complex Inheritance tax planning.
I'm a firm believer in that age old adage...'You get what you pay for'... Yes I charge my clients a small fee for mortgage advice plus I still receive a procuration fee from the lender involved. But... and it's a BIG BUT, I have seen (at first hand) what constitutes mortgage advice from both fee chargers and non-fee chargers and I can honestly say that service is the key here... I charge fees as a business decision because I honestly feel that the service I provide warrants a fee. Meaning that I source from the whole of the market to ensure the most appropriate mortgage (not necessarily the cheapest interest rate) is recommended to my client, I expedite the process to ensure that everything runs smoothly, I act on behalf of the client when dealing with Estate Agents, solicitors and accountants, thus protecting them from the hassles and worries associated with dealing with these professions. I have been told countless times (especially by first time buyers) that the fee I charge is worth every penny - as I remove as much of the stress as is possible. I am also on hand at every stage to offer reassurance with every stage of the mortgage / house buying process.

Alternatively – if the client requires a straight forward remortgage and has no need to have the mortgage deed or the solicitors questionnaires explained to them – then it is obviously in the client’s interest just to have me take the procuration fee, in which case I do not charge a fee at all. It is all about TIME spent! – at the end of the day, if any body says they are doing it for nothing – then that makes them a charity!

I’m going to be controversial here…. Lender procuration fees vary greatly for the same client situation / lending, if a broker is not charging any fees at all – then can the consumer really be sure they aren’t being placed with a lender that offers a higher procuration fee or some sort of bonus payment just to make the brokers payment up because he/she has not charged an additional fee????????

So......the great debate continues...................... I believe that service is the key, If you are after a mortgage and your adviser charges a fee - ask him/her - what they are going to do for that fee, if they offer the service levels that I do, maybe it's worth paying (you decide) - If they are simply sourcing a deal and submitting the application on your behalf without the service levels described - then I'd say - probably best to shop around.

Remember – Independent Financial Advisers act on behalf of YOU – the client. All other forms of adviser, whether tied or multi-tied – represent the company / companies they deal with.

I hope this helps (it is my first post so please be gentle with me)

Keep well everyone...

Mr_helpful

do you offer an option to rebate the proc fee in full to the customer as without it you cannot call yourself independent.

toonfish

Chris - I personally think your post (first or not) is out of order. We run a perfectly viable IFA/mortgage company without charging fees, although we of course offer the option. Just because we do not need to charge fees, and gain a lot of business because of this, does not mean our advice is any better or worse than a fee charging company.

You should not judge other's business models without knowing how they work.