Martins View On Using Mortgage Brokers...

dunstonh

Not having a go, just confused !

oh no, don't you say that. I thought I was the only one on here that was

Actually, it's been useful as I have picked up a lot from this thread.

Beena_Rashid

Me again!
No questions this time, I thnk I have got abasic understanding of how all this works now.

My second mortgage advisor has pointed out that he will earn 0.325% (£650)as a fee from the Nationwide Building Society, and if he were to charge me a fee of 1% (like in the other advisers web site, on here, as an example) it would be £2000.
If he gave me all the the commission I would still end up paying £1350 as a net fee.

He says some mortgage advisers that do charge fees, charge a high % so it's a "win win" situation for them, no matter which way the client goes.

I think I will go with the Nationwide 5 year fixed rate, and let him keep his commission.
As far as I can see he has earned it !

Sorry if I have caused a bit of a fuss, but I just wanted to get to the bottom of who was telling me the facts, and who was putting a bit of a "twist" on it.
In the words of Arnie, "I'll be back" but not for 5 years LOL

notiesmortgagegirl

Come back anytime.
If it were not for you, we would have never have sorted out the confusion LOL

sophistica

I have just paid a £399 fee to a mortgage broker who:
- got me a great mortage
- got me a money back option and solicitors fees back
- came to my house to do the paper work
- kept on the case and arranged it in less than a week
Yes, he is also getting £1700 from the mortgage company but this guy got me a much better deal than the free broker I was using before.

HelpWhereIcan

sophistica wrote:

I have just paid a £399 fee to a mortgage broker who:
- got me a great mortage
- got me a money back option and solicitors fees back
- came to my house to do the paper work
- kept on the case and arranged it in less than a week
Yes, he is also getting £1700 from the mortgage company but this guy got me a much better deal than the free broker I was using before.

Exactly why I have always said, including in this thread, to base your choice of adviser on the advice/service you receive. Some are better than others and the way they earn their money and how much they earn is far less important than the lenders they have access to and the quality of the advice/service they give.

lowis

this is from someone who is about to do a search for a mortgage...when are the fees payable to the broker?

i have the numbers of three whole-of-market brokers and was wondering whether it would be worth getting all three to do a search? will i have topay them anything for doing an initialy search for me?

dunstonh

this is from someone who is about to do a search for a mortgage...when are the fees payable to the broker?

Depends on their charging structure as disclosed in their initial disclosure documentation. Some may make a charge as soon as they start work. Others may allow an initial period before charging (such as a basic enquiry). Others may make no charge at all and only get paid on commission if you proceed.

lowis

these people have been recommended to me, does anyone know them? would they be classed as an independent?

http://cgprivate.com/index.html

thanks

dunstonh

lowis wrote:

these people have been recommended to me, does anyone know them? would they be classed as an independent?

http://cgprivate.com/index.html

thanks

Ok, is it just me or is the following a contradiction.

Unlike many brokers, we do not charge our clients a fee for advice,

So far so good but then it says....

however there is a non-refundable application fee of £195.

Isnt that a fee?

I couldnt find anything on the site to say they were whole of market. The link to their IDD is down at the moment. The FSA website shows them as being independent for invesment purposes but no mention of mortgages (which is normal). The fact they are indepedent for investment business would almost certainly suggest that they are for everything else.

lowis

thank you dunstonh

yes - i noticed that, i guess they class 'advice' and the actual application based on their advice as two seperate entities

and i STILL don't understand this thread about what is and what isn't a fees free independent broker! i need to re-read it a few times :rotfl: