Martins View On Using Mortgage Brokers...

xanderd

oh right,

We dont have any savings or upfront money, so I dont really want to pay if I dont have to! Is it possible to have the 'top-up fee' added onto the mortgage?

Also, is it morally and leagally acceptable to have this broker find the right deal for me then walk away and complete the deal somewhere else for free? Its just that this broker was recommended to us by a friend so I know they are good, but I dont want to waste hours of their time by walking away at the last minute which might upset them, and my friend who recommended them!

cheers

payless

If there's enough equity yes you might be able to add fee... although really its the same as reducing your deposit.

Morally ... NO

I don't have a problem with people shopping around, but IMO if you want to deal with them... accept their fees or strike an agreement... otherwise if you have no intention of using them - so eslewhere in first place.

Legally .. doubt they have a contract that would oblige you to complete with them ( although they might not tell who all the info initially) ... so unless they charge upfront....

MortgageMamma

xanderd wrote:

oh right,

We dont have any savings or upfront money, so I dont really want to pay if I dont have to! Is it possible to have the 'top-up fee' added onto the mortgage?

Also, is it morally and leagally acceptable to have this broker find the right deal for me then walk away and complete the deal somewhere else for free? Its just that this broker was recommended to us by a friend so I know they are good, but I dont want to waste hours of their time by walking away at the last minute which might upset them, and my friend who recommended them!

cheers

I truly hope you don't use the broker then walk away, as thats just wasting someone's time and you wouldnt like it if the boot was on the other foot.

Instead of doing this, why don't you specifically look for a fee's free broker, there are quite a few of them around, then you only gain from using the broker. I don't mean to rant or sound condescending, but its people that "use" a broker service and then go direct to the recommended lender which are forcing brokers, possibly soon myself, to charge a fee on each case. Either that or the broker will never disclose the lender until you sign up, but thats a bad way to start a long term client/advisor relationship, as trust should be built up and products should never be shrouded in secrecy.

Good luck whatever you choose, and remember, a broker/client relationship built on mutual trust and respect can be immensely benefical to you in the long run.

MM

xanderd

Hi,

I have now cancelled my appointment with the fee charging broker. I didn't want to waste anyone's time, I was just confused about the advice from Martin which said to find the best mortgage with a broker and then go elsewhere to complete the deal.

Although on the phone she said a fee-free broker's advice wouldnt be as 'good' as they would try to give us a mortgage from a lender who pays them the most commission. To what extent is this true?

Anyway looks like I am stuck with fees-free as I dont have any money! I have booked an appointment with a fees-free whole of market on Wednesday!

HelpWhereIcan

xanderd wrote:

Although on the phone she said a fee-free broker's advice wouldnt be as 'good' as they would try to give us a mortgage from a lender who pays them the most commission. To what extent is this true?

But she would say that wouldn't she. The main thing is that whoever you appoint to arrange your mortgage offers you the most suitable deal for you. If you have any doubts, talk to one or two before making your decision.

It may happen, but reccomending a deal on commmission payable is a very stupid thing for any broker to do as they will always be caught in the end. Any broker worth their salt (fee charging or not) will show you their research and be able to explain why the deal they have reccomended is better for you than the others in their research they may have dismissed. Insist on seeing the research and always get a Key Features Illustartion for the deal you are being offered. Then, leave the office and take what time you need to assess what you have been advised to do.

After all, you could always post details of what you have been reccomended on this site and use the comments posted by those that respond to ask questions of the broker about the product they have reccomended.

I use technology to be efficient - unlike a fee charging broker I know. I do more cases, but I have more time to deal with my customers than he does. Go figure. But I would say that wouldn't I

Hope this helps

AndrewSmith

xanderd wrote:

Although on the phone she said a fee-free broker's advice wouldnt be as 'good' as they would try to give us a mortgage from a lender who pays them the most commission. To what extent is this true?

But what she is failing to tell you is that she will also receive a commission from the lender in addittion to the fee of 1% that you are paying them. Therefore if this were true of a 'fees free' broker it would also apply to her as well.

That aside it is a ridiculous and childish statement for the broker to make and is based on nothing but sour grapes and desparation as you have decided not to pay their proportionately high fee of 1%, when she knows that you will get the same quality advice without such a fee.

Being fee charging or fees free does not change the market acces of the broker nor should it affect the quality of the advice, as all brokers are monitored on the advice given to ensure suitability.

What you should be more concerned with is the experience of the broker you choose, how long they have been arranging mortgages, and their market access. DOn't forget that 'whole of market' doesn't automatically mean every lender.

Andy

MortgageMamma

Well pointed out Andy, and the broker you spoke to was out of order to make such a statement as fee's free means not as good advice. who is she to judge? Someone with morals as low as that, who is trying to con you into paying fee's for peace of mind that you are getting the right advice is letting the side down big time and should be reprimanded for such a statement.

Care to name and shame?! lol

payless

Some of the 1%ers seem to be "sales forces" , keen on a one hit rather than people ( often firm owners ) interested in establishing a long term mutually beneficial relationship

xanderd

I don't mind naming and shaming! the 1% fee was 'Charmaine Consultancy Ltd' based in Ealing, NW London. They seemed nice enough so I dont want to slate them too much!

Anyway, I've had my fee-free advice now and I am pleasantly surprised they would lend us anything at all! The advice was clear and friendly so Ill name them too!: The Independant Mortgage Advice Bureau based in Uxbridge, NW London.

Thanks for the comments.

hi123

can i also share my experience
10 days ago clicked on moneysupermarket website ,had an email back with a gentleman seeking to see me
he took all my details and promised to get the best deal incl exclusives
i clearly told him that if/first direct were the 2 i was considering and can he find me a better deal
he mentionned about fees starting at 195£,which i was prepared to pay for the right advise and offer,he agreed to see me in a week;s time with his recommendations
before he came back i got letter from intelligence finance that my mortgage process has been sorted,solicitor appointed etc i had no clue as the broker had not discussed his recommendations with me till this time
most importantly there was a fees of 2995£ added to my mortgage
is this ethical/legal approach
how can they justify this fees for remortgage of 160k which they applied on my behalf only an hour after they saw me for the first time ,without discussing with me at all