Martins View On Using Mortgage Brokers...

dunstonh

kangaroo321 wrote: »

It is helpful to first ask if the mortgage broker is independent or attached to another company. A brokerage company is a better option as they have larger database.

There are three classifications. Independent, whole of market or single/multi-tied to a limited panel.

Independent has the widest range as it considers commission and non commission paying mortgages. Whole of market comes next as that would typically only be commission paying mortgages and the last one needs no explanation.

Daniel_Elkington

To further on the post Dunstonh made above, the Independent can choose direct offer mortgages - which are the ones you would likely get if you walked into the branch.

We should move beyond the whole 'get the best deal' idea. The word cheap has two meanings - 'low cost' and 'rubbish'. Just because someone charges a fee doesn't mean they are bad.

A mortgage is pretty much the same process for most ideal clients, a mortgage broker may charge a £500 fee which can be offset by the proc fees. These proc fees are typically 0.3-0.5% the value of the loan.

This broker is simply setting a minimum payment amount which they feel represents the amount of work needed to get that client a mortgage.

The independent broker is working for the client, not the lender. The guys in the branch are working for the lender, not for you. You may have to fork out more for the independent solution, however you can be assured that said broker has performed to the best of their ability and got you the best product they possibly could.

Always go independent when it comes to advice, whether that is on mortgages, pensions, surveying or investments. It costs more, but the client is contracting the adviser, not inviting a number of sales pitches. - that's the principal anyway.

yonny_2

i have just come back from seeing a 'whole of market' advisor who tells me that once the mortgage offer has been made the a fee will be payable by me to him of £695!
Is it still the case as martin once said that if they charge to walk away?
I know its a different ballgame these days but its still very confusing!!!!!
Y

Daniel_Elkington

If you are not yet liable to any fees, have a look for more.

Ask him if the procuration fee (the mortgagey term for commission) will be taken off that fee.

You should look for one where you would be liable to fees on completion as well.

The thing is, Martin isn't always right (Icesave anyone) and if an adviser is charging fees then they are more likely to be truly whole of market as there is no commission bias.

harvey115

yonny wrote: »

i have just come back from seeing a 'whole of market' advisor who tells me that once the mortgage offer has been made the a fee will be payable by me to him of £695!
Is it still the case as martin once said that if they charge to walk away?
I know its a different ballgame these days but its still very confusing!!!!!
Y

If they say Whole of Market that means they are only looking at comission based deals. So ask them what happens with the comission from the lender.

A true Whole of Market broker 'charging upfront fee' should refund all the comission he/she gets to you. If not I would say this broker is way too expensive...

dunstonh

i have just come back from seeing a 'whole of market' advisor who tells me that once the mortgage offer has been made the a fee will be payable by me to him of £695!

Not good for a whole or market adviser but that is good if it was an independent.

Is it still the case as martin once said that if they charge to walk away?

if it is whole of market then walk away. if its an independent then its fine.

A true Whole of Market broker 'charging upfront fee' should refund all the comission he/she gets to you. If not I would say this broker is way too expensive...

a true whole of market broker charging a fee is called independent.

robertadico

this will help a lot.........thanks

yonny_2

and Im back with another question.............. another broker,,,,,,,,,,again 'whole of market' who charges nothing initially - but has a fee of £1045 - a £245 application fee with the balance payable on completion !!! Im still confused !!!:o

GMS

How much are you looking to borrow? Has the broker recommended any lenders as yet?

yonny_2

no he hasnt yet - and 150k !!:o:o