Martins View On Using Mortgage Brokers...

BrokeRage

AND "Whole of Market" means "Representative of the whole market", so you had the crazy situation about 3 years ago where one major adviser network was "Whole of Market", but excluded Abbey, Nationwide and C&G, three of the big five lenders (amongst others).

m.colak

Not bemoaning brokers as i think they do a good job (if you need them). Have just remortgaged myself and the total cost was £276 or which £34 what a shortfall between my new mortgage and old and £232 was the differences between the new mortgage i applied for and the settlement figure of my old one. My payments are now fixed for 10 years at 5.39% (Rather I tied in long term due to wanting financial stability) and i have saved £10 a month on my mortgage payments. It can be done without a mortgage broker if you spend the time shopping around for the best deal. However I still recommend them for first time buyers or people unsure of what they are doing.

druss

m.colak wrote: »

Not bemoaning brokers as i think they do a good job (if you need them). Have just remortgaged myself and the total cost was £276 or which £34 what a shortfall between my new mortgage and old and £232 was the differences between the new mortgage i applied for and the settlement figure of my old one. My payments are now fixed for 10 years at 5.39% (Rather I tied in long term due to wanting financial stability) and i have saved £10 a month on my mortgage payments. It can be done without a mortgage broker if you spend the time shopping around for the best deal. However I still recommend them for first time buyers or people unsure of what they are doing.

Well said that man, if you know what you are doing then you dont really need us brokers you never have, for the vast majority who arnt sure of what to do with their finances or those who are to busy to sort it themselves it's far better to see a good broker.

payless

m.colak wrote: »

Not bemoaning brokers as i think they do a good job (if you need them). Have just remortgaged myself and the total cost was £276 or which £34 what a shortfall between my new mortgage and old and £232 was the differences between the new mortgage i applied for and the settlement figure of my old one. My payments are now fixed for 10 years at 5.39% (Rather I tied in long term due to wanting financial stability) and i have saved £10 a month on my mortgage payments. It can be done without a mortgage broker if you spend the time shopping around for the best deal. However I still recommend them for first time buyers or people unsure of what they are doing.

although of course the comments about "costs " shows that perhaps you did not understand the " costs" totally + you might have found the broker had told you about the issues you posted about this week that caused you some concern.

m.colak

payless wrote: »

although of course the comments about "costs " shows that perhaps you did not understand the " costs" totally + you might have found the broker had told you about the issues you posted about this week that caused you some concern.

Actually do understand what the costs were for as ask for a complete breakdown. The final costs of the Conveyancer totalled £576 which i thought was reasonable seeing how little work they did lol. However when i bought the product it including £300 legal fees paid and therefore either way i saw that i was onto a winner. Are you going to tell me you could have got the same deal as me for less. Yes a broker on here has brought to my attention something I didn't know about and therefore thought about and thats is whether my exsisting mortgage payment interest was either advance or behind (can't remember the word I'm thinking of) and I thank him for that as I will look at it next time I remortgage. But apart from that when i initially looked at changing my Mortgage i did calculations factoring additional "costs" from the conveyancer and that is why my new mortgage was more than the settlement figure, that i derived when contacting the mortgage company prior to starting the whole regamoral, so as to absorb some of this additional "cost". The fact that the whole thing has cost me £276 is a moot point. What I am actually looking at is that my calculations actually were only £22.95 out (£20.05 interest for the day lost) which is a cause for celebration. How many times have you told clients there is a shortfall? How many times has this been less then £100? (This is including your own costs or do you charge them seperate or are they included into the new loan).

payless

Actually do understand what the costs were for as ask for a complete breakdown. The final costs of the Conveyancer totalled £576

If your conveyancer costs totalled £576 - then thats above average for remortgage ..

And what about the the BM exit fee ? was that included in your take on conveyance fees ( if so hence my comment about not understanding "costs" .

Costs do not equal the shortfall , as dates of payments , daily interest calculations and initial interest all play there effect on shortfall amount.

Are you going to tell me you could have got the same deal as me for less.

who knows as talking about products available on date of application - if it was a commision paying deal, then yes would have beaten it , if not then if it was the best deal really then maybe not ( after my small fee) or maybe yes if I saved this - say on solicitors - not forgetting value of input!

How many times have you told clients there is a shortfall?

doesn't happen ( unless they want it or give me incorrect figures themselves ) as I calculate with a small surplus to avoid last day hitches - which client get back-- and can over pay off mortgage if required.

How many times has this been less then £100?

see above

(This is including your own costs or do you charge them seperate or are they included into the new loan).

when you started this I was doing fee free - these days I make a small upfront cost for research - refunded ( often with a bit more ) if the deal is a commission paying arrangement.

Other brokers may be different- but I know a lot that would work on a similiar basis

Not saying you did a bad job... just that a good broker would have covered all these bases , usually been able to do work on your behalf, put your mind at rest when problems arose , offered indemnified advice.......

m.colak

payless wrote: »

If your conveyancer costs totalled £576 - then thats above average for remortgage ..

And what about the the BM exit fee ? was that included in your take on conveyance fees ( if so hence my comment about not understanding "costs" )



who knows as talking about an old product - if it was a commision paying deal, then yes would have beaten it , if not then if it was the best deal, maybe not ( after my small fee) or maybe yes if I saved this say on solicitors .



doesn't happen ( unless they want it! ) as I calculate with a small surplus to avoid last day hitches - which client get back-- and can over pay off mortgage if required.

see above



when you started this I was doing fee free - these days I make a small upfront cost for research - refunded ( often with a bit more ) if the deal is a commission paying arrangement

Yes the BM exit fees were taken into consideration as they were £150, this was included in the settlement figures. Don't worry about the conveyancer fees as will be scrutinising them when i see them. However as I said i don't think i did bad for my first attempt. Yes you could get more or better deal but then again you have been doing it for a while. I had one attempt and didn't get stiffed (Or maybe i did but not as much as some people). All i stated is if you have the resources/time/dedication and a bit of common sense to do it then yes attempt it yourself, as you gain by experience. If however you are a first time buyer or not happy with risks/outlays/possible outcomes or possible not happy attempting it then contact a Mortgage Adviser.

ps the costs of the conveyancer includes 3*funds telegraphs and a deed of postponement plus additional fax's and letters. I do feel that maybe it was a bit steep however won't know until i look at the breakdown properly.

payless

All i stated is if you have the resources/time/dedication and a bit of common sense to do it then yes attempt it yourself, as you gain by experience

yeah abit like me with plumbing DIY .. although if I knew that the majority of plumbers would do me a fair priced job ( ie maybe make their turn on parts - that I can't get at trade price , to cover labour)

Sarah_Williams_3

homer_j wrote: »

Welcome to the world of the FSA.

If you see value in paying a fee, that is fine but with independent based advice, you would at least get some of that back through the commission the adviser would rebate.

I see your point that if we went Independent than we would get some of it back through your commission. You said that the usual commission is around 0.3% to 1%. So are you saying that you would charge a fee of 0.5% but lender may give me 1% back? If this is the case then you are losing money?

dunstonh

Sarah_Williams wrote: »

I see your point that if we went Independent than we would get some of it back through your commission. You said that the usual commission is around 0.3% to 1%. So are you saying that you would charge a fee of 0.5% but lender may give me 1% back? If this is the case then you are losing money?

You are not losing money. You are gaining 0.5% instead of getting nothing.

I work as a [hybrid] fee based adviser with investment business and typically take upto 1% on investments (with a cap). I could take 3% or 4% with some. So, you could say I am losing out on 2 or 3% but I am not because I get more business because of the fair pricing than I would if I kept all the commission.