Martins View On Using Mortgage Brokers...

Paul_Herring

jimpeter01 wrote: »

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Mspir

I've used one of the recommended "big" brokers (LC). Very bad service: slow, they ask for the same documents repeatedly, no-one has overall responsibility for your application.
Any suggestions?

dunstonh

Mspir wrote: »

I've used one of the recommended "big" brokers (LC). Very bad service: slow, they ask for the same documents repeatedly, no-one has overall responsibility for your application.
Any suggestions?

Get a local mortgage broker you can speak to face to face and see the research and data right in front of you. Dont employ a large national firm. Support your local businesses. There are plenty of fees free advisers out there and there there also some occassions when fee based can work out cheaper than fees free.

nico1977

Hi
I am new to this site just registered today. I have always been interested in Martins views and have to say the difference between Whole of Market and Independant is a minefield. Being a Mortgage Broker I can see both sides of the fence regarding fee charging brokers and fee free brokers. I used to be Fee Free but have since adopted a new charging structure.

What you have to be careful of is that brokers can call themselves independant/whole of market but as rightly said earlier in the post they only have to proove they have a true representative of the market place to fit in this mold. By using the FEE FREE broker are you getting true advice? There are a number of direct to lender deals available at this time and lets be honest the majority of brokers wont tell you about these and are not obliged to either, as they dont get paid a commission. On the other hand by paying a fee the commission if any is then refunded to you so you are paying for a service and you are employing someone to find you the best deal on the market place for your current needs.

I understand that Martin states NOT to use a fee charging broker but not all but I would say a large proportion of brokers will not tell the clients about direct deals if they are not going to get paid for it. Nobody questions the fee you have to pay to solicitors but legally you dont have to use a solicitor to act for you on a sale/purchase but 99% of people do because it is there expertise and this is the same for Mortgage Brokers. If they do the job properly you will have the same advisor for as long as your mortgage and any problems or issues you may have they can be contacted to help resolve.

I apologise for waffling I just had to get that off my chest. Please take this post as a personal opinion. Hope to get a response from someone.
All the Best

IPP-Believer

To be honest I have started charging a fee up front to stop people wasting my time researching and then going elsewhere.

As for direct deals I have started driving customers to the bank or building society in question waiting outside for them and then taking them home afterwards.

Sorry I am being sarcastic there, I do make it clear there may be direct deals available that could be cheaper, but I certainly would not want the responsibility of recommending a deal I receive no income from.

Its up to the customer at the end of the day to respond to the service you offer as long as you are upfront about what is being offered.

magburner

Brokers generally put you in the direction of the lender who will pay them the biggest fee. This is why so many poor people are with Northern Rock as they used to throw money at brokers. I would never ever use a broker over my own research and going direct to a lender. No need to line the pockets of the most unscrupulous profession any further

dunstonh

Brokers generally put you in the direction of the lender who will pay them the biggest fee.

Rubbish. Research does not allow a bias for commission. Not that it really matters, the remuneration from providers is much the same anyway. If you are paranoid about it. Then go fee basis.

This is why so many poor people are with Northern Rock as they used to throw money at brokers.

Nothing to do with the lending criteria then.

magburner

You know as well as I do Rock used to pay some of the highest proc fees and bonus fees for Together. Don't just blame the lender. Anyone on this forum who has a Together mortgage should consider whether their broker acted in their best interest.

koexelek

magburner wrote: »

Brokers generally put you in the direction of the lender who will pay them the biggest fee. This is why so many poor people are with Northern Rock as they used to throw money at brokers. I would never ever use a broker over my own research and going direct to a lender. No need to line the pockets of the most unscrupulous profession any further

Urban myth.

Brokers have to justify their advice to the client, and prove it is the best deal available.
Not only that, if you don't offer the client the best deal, you won't get repeat business and referrals.
I know , in this day and age of technology and the internet, my clients will check up on what I have said before they commit to the deal.

Northern Rock did things in the mortgage market where they had no competition, that was why they got recommended a lot. It had nothing to do with commission

payless

magburner wrote: »

Brokers generally put you in the direction of the lender who will pay them the biggest fee. This is why so many poor people are with Northern Rock as they used to throw money at brokers. I would never ever use a broker over my own research and going direct to a lender. No need to line the pockets of the most unscrupulous profession any further

can't answer for others , but this year I have recommended more non-commission paying products than commission products ( and mostly without a fee !! )

I never really liked NR to deal with , but they did sometimes have some good rates (particularly long term flex fixed) ... so have used them for some people.. although can only remember 1 together mortgage