Martins View On Using Mortgage Brokers...

markrobinson_2

Hello Friends
I am new here

payless

MLP

Have a read of FSA rules MCOB 4.3.7R &4.3.9G

In summary:


If a firm describes itself as 'independent', it must intend to:

• offer a whole of market service; and
• give the consumer the choice to pay a fee as the only remuneration for the service. As we explain in MCOB 4.3.9G, an 'independent' firm must offer consumers a purely fees-based payment option ( possibly in addition to other methods)

If a firm describes itself as 'independent' without satisfying these conditions, it is likely to be in breach of the Principles for Businesses. Principle 7 states that: 'A firm must pay due regard to the information needs of its clients and communicate with them in a way which is clear, fair and not misleading'.

Jammychips

How can I find out if Cooper Associates is a decent Mortgage Broker? I've had them round to the house and they seem okay, but I'm still not sure - Has anyone else used them? Any thoughts on the company and their ethics?:o

mcpee

Hi all

I have been following this thread and although it gets confusing at times I think I am making sense of it now.

Question: My Wife and I are remortgaging our property and have been recommended a financial advisor by a family friend. On his company's 'Services and costs' they say:

1. We offer products WOM
2. For new clients a fee of £250 will be payable with your application for a mortgage, in addition we will receive commission from the lender.
3. No refund if you decide not to take out a mortgage product.

With the remortgage being for £216,000 the company will receive £781.00 in cash or benefits from the lender.

Does this all seem like a fair deal, before we send off the paperwork?

Thanks

Mcpee

dunstonh

mcpee wrote: »

Hi all

I have been following this thread and although it gets confusing at times I think I am making sense of it now.

Question: My Wife and I are remortgaging our property and have been recommended a financial advisor by a family friend. On his company's 'Services and costs' they say:

1. We offer products WOM
2. For new clients a fee of £250 will be payable with your application for a mortgage, in addition we will receive commission from the lender.
3. No refund if you decide not to take out a mortgage product.

With the remortgage being for £216,000 the company will receive £781.00 in cash or benefits from the lender.

Does this all seem like a fair deal, before we send off the paperwork?

Thanks

Mcpee

Answered on your own thread.

For anyone else wanting to reply, to the poster, please use the other thread so we dont get multiple responses across two threads.
https://forums.moneysavingexpert.com/discussion/2594077

mcpee

Ooops! Sorry! Yes reply on other thread PLEASE!

bertie1234

Just wanted to add my two-pence worth and vent some frustration.

I used London & Country as my broker, mostly due to the advice of this site. I called up, got really really good service at first, they compared the deals for me, and as I wanted a quick mortgage I ended up going with the Abbey at a slightly higher rate as they offered a very good service and were very quick.

As soon as I'd decided on the mortgage, I was handed over to someone else at L&C, and SIX WEEKS! later, they still haven't sent out a valuer, as the Abbey have been asking for one piece of ID or information every week. I know that this isn't down to the broker, but after seeking advice elsewhere, I have been told that the info that has been requested is very standard, and the broker should have been prepared and asked me for it in the first place.

The info in question is simply bank statements, proof address and id. Yet it has taken this long to get the message across.

I have ended up going directly to HSBC, who offer a better deal and a much better service, that was last week, and the valuer is going out next week.

I suppose my point is, be wary of using a broker, even one that comes recommended by this excellent site, as you are one more step away from the actual lender. One as big as L&C means that you can rarely get to speak to your advisor as the phone is never answered! I feel that we were mis-sold the efficiency of the Abbey, as I have since learned they are famously pedantic and inefficient, I don't know whether that was because they offer better commission rates than other lenders, or is that me being paranoid?

GMS

This post saddens me. As a sole trader broker I am always available to speak to my clients, and having vast experience in the mortgage industry both as a broker and working for lenders I would have asked for all of this 'basic' paperwork up front.

Perhaps this post should be highlighted by the site who champion the said broker.

A broker cannot claim to have a complete file without all of the necessary items a lender may request. Bank statements may or may not be requested, but my philosophy, and that of many small brokers is to have too much rather than not enough. My files are robust and anything a lender should request would have been asked for from the client at the outset.

I completely understand why you chose to go direct to the lender, it is something we as brokers have to contend with daily.

I hope the previous post does not put people off using a broker. Sometimes the bigger companies are about volume and turnover rather than customer care. Companies are referred to as the answer by sites like this and often fall short.

Visit your local broker in the same way people visit their local butcher. You may find the butcher has a less fancy shop and less staff than the supermarkets, but he will help you with anything you ask where as the supermarket will direct you to the pre packed meat and send you on your way.

Good service should be at the forefront of any customer facing industry. I am available by landline, mobile and email to any of my customers. I would expect nothing less of a broker I dealt with, so offer the same.

dunstonh

As soon as I'd decided on the mortgage, I was handed over to someone else at L&C, and SIX WEEKS! later, they still haven't sent out a valuer, as the Abbey have been asking for one piece of ID or information every week. I know that this isn't down to the broker, but after seeking advice elsewhere, I have been told that the info that has been requested is very standard, and the broker should have been prepared and asked me for it in the first place.

Abbey and quick are not two words that normally go together. It is a requirement for the adviser to get the verification of ID information for themselves as well as the lender. The broker has to comply with the same ID requirements Abbey have. So, logically, the broker gets it, takes the info/copies for their own compliance records and sends it on to the lender for their records.

I suppose my point is, be wary of using a broker, even one that comes recommended by this excellent site, as you are one more step away from the actual lender.

Perhaps its better to say that be wary of using a low cost broker who is not local and cant just drop round to get information or sort problems out.

I feel that we were mis-sold the efficiency of the Abbey, as I have since learned they are famously pedantic and inefficient, I don't know whether that was because they offer better commission rates than other lenders, or is that me being paranoid?

Its not a mis-sale but it could be just down to the inexperience of the individual. Not getting ID forms and thinking Shabby are quick are basic errors that would not occur with experience.

L&C have a very good reputation and a considered a well run company. They are also very lucky to get Martin recommending them when you consider that the majority of local mortgage advisers in the UK work exactly the same way but with a face to face contact. It is not uncommon for companies as they get bigger to become less efficient. The brokers become less like advisers and more like order takers. Maybe that is what has happened here.

If you let L&C know of your problem, they will look into it as they are sensitive to problems and you will be doing them a favour if it is a training problem for the staff member involved.

bertie1234

Thanks for taking the time to respond to my rant!

I agree, I wish I'd gone to a smaller, local broker instead of using a big one. I didn't mean to paint a picture of all brokers being the same, especially small independents, but I wanted to let people know about my experience.

One of the reasons I went to HSBC is that my partner and I are both customers there and they are able to verify our identities, and have their own way of scoring our credit worthiness from our banking history with them. Which, hopefully, will speed the process along. *crosses fingers*