Martins View On Using Mortgage Brokers...

BuffFatBoy

dunstonh wrote: »

A refund of most or all the fee is the norm when a case doesnt go ahead.



Its not their responsibility that you instructed people too quickly. You should have waited a week or two longer until the lender had given a yes decision. The UK system is a bit flawed on this basis that you can end up incurring costs if the property doesnt go through. However, thats one of the risks that happens. Has the mortgage adviser been able to get alternative borrowing arranged?

Hi, thanks for commenting.

In retrospect, I perhaps did proceed to quickly; however, it was necessary to do so as there was a good probability of being gazumped with cash buyers. Unfortunately, the broker could not arrange alternative borrowing as no further options were available. I am grateful that the broker is willing to refund their fees however

Gorgeous_George

As mortgage rates collapse, the proportion that the broker's fee consumes increases. A fee of 0.3% on a loan at 6% equates to a twentieth of the interest charged. As mortage rates approach 3%, the fee is one tenth of the interest earned by the lender.

With lenders' margins being squeezed it is not surprising that they increasingly turn to direct deals - especially as the number of mortgages being approved has crashed, leaving bank staff more readily able to cope with the smaller number of applicants.

Those who are finacially illiterate should still use a broker.

GG

GooWorld

Hi,
I have worked out that I need approx 10k I have already saved 15k in a very short time. I have roughly 6 weeks to get the dough, which I'm fairly confident I can get, as I'm self-employed and are on target! but just in case I don't make it!:eek:

minimike2

GooWorld wrote: »

Hi,
I have worked out that I need approx 10k I have already saved 15k in a very short time. I have roughly 6 weeks to get the dough, which I'm fairly confident I can get, as I'm self-employed and are on target! but just in case I don't make it!:eek:

Eh??????????

payless

As mortgage rates collapse, the proportion that the broker's fee consumes increases. A fee of 0.3% on a loan at 6% equates to a twentieth of the interest charged. As mortage rates approach 3%, the fee is one tenth of the interest earned by the lender.

With lenders' margins being squeezed it is not surprising that they increasingly turn to direct deals - especially as the number of mortgages being approved has crashed, leaving bank staff more readily able to cope with the smaller number of applicants.

Those who are finacially illiterate should still use a broker.

GG



Have you got a Scottish Bond with SCOTTISH FRIENDLY (tax-free with £25 limit)? Be aware that mine has lost £163.84 since July 2008 despite having paid in an additional £200 in premiums. I'm surrendering mine - should you be doing the same?

GG. did you pay for advice on that Scottish Bond ? RIY on current policy is 4.65%pa

...

I don't think my clients are financially illiterate, but feel I add value to their transaction ( albeit that may involve recommending a direct deal-)

re the commission as % of case - note many deals are long term so the cost is not an annual cost to lender) ... silly thing is the commission paid, or not paid in direct cases is not the real issue- many of us just want the access to the products, then we could advise and transact in the way we want to ( and pay fees for the required "licences") - although it may be renumerated by fee rather than commission... but hey it might be worth paying that fee, so to avoid buying the mortgage version of a "Scottish Bond" ( which is predomiately purchased direct... they do give £15 M&S vouchers though, so it must be good )

dunstonh

but hey it might be worth paying that fee, so to avoid buying the mortgage version of a "Scottish Bond" ( which is predomiately purchased direct... they do give £15 M&S vouchers though, so it must be good )

A bit like Michael Parkinson advertising the over 50s plan. Its a really awful product and you wont find advisers recommending it unless its the very last option available. Yet you see a lot of over 50s buy it because they get a free Parker pen and now they can get a TV as well. Plus Michael Parkinson, June Whitfield or Cilla Black wouldnt sell them anything bad.

Seeing an IFA in that case would mean the IFA would divert you to a different product which is better value for money. However, the IFA would be paid either by fee or commission. So, avoiding that fee or commission would have resulted in a worse product being bought.

Just look at the mugs that bought the AXA sun life cashbuilders (or other versions) where the charges were higher and less tax efficient than the advised products. AXA were advertising these up to 10 years after most advisers had stopped recommending them as they had become obsolete.

koexelek

dunstonh wrote: »

A bit like Michael Parkinson advertising the over 50s plan. Its a really awful product and you wont find advisers recommending it unless its the very last option available. Yet you see a lot of over 50s buy it because they get a free Parker pen and now they can get a TV as well. Plus Michael Parkinson, June Whitfield or Cilla Black wouldnt sell them anything bad.

.

you are so right.

the general public are, unfortunately, more likely to believe some celebrity paid a nice backhander to endorse a product, that a fully qualified IFA who has spent a lifetime in the business :rolleyes:

Ian_Griffiths_Halifax

Carol Vorderman has a lot to answer for!

Todays Countdown Con-undrum is: FLOGMEAPPIWITHTHAT

robberbutton

Just thought I would add my experience of using a broker vs. not.

Called London & Country after loads of recommendations from this site. Everyone I spoke to was lovely, but unfortunately it took over 3 hours for someone to call me back. In the meantime I had a look around for myself.

I needed £160,000 to pay for a £220,000 house, low monthly payments a top priority, so wanted interest free, fixed for 2 years.

London and Country's best offer (from Abbey): 3.99%, £707 a month repayments.

Me searching best buy tables and going direct (Natwest): 3.19%, £425 a month repayments.

The guy I spoke to really was nice, but he couldn't believe the deal I'd found by myself. So definitely look around too!

Elainer

Hi all,
Only read some of this thread so forgive me if im repeating.
Me and OH want to get a new fixed rate and have had appointment with 'your mortgage decision'. On reading the blurb, it seems that they charge between 3 and 4 % on completion. This seems a lot to me am I right?
Any comments welcomed