Martins View On Using Mortgage Brokers...

AndrewSmith

This is the trouble with moneysupermarket.

They do not employ or vet any of the broker's to whom they pass your details. In fact, moneyupermarket is nothing more than a lead generation company who sells your details to the highest bidding local broker firm via a site called PAA leads.

You have no guarantee as to the experience or character of the person to whom the sell your details.

Andy

Careful_girl

Just to add to the Moneysupermarket worries I will add my awful experience with Money Net. In the past I used Charcol to find a mortgage and it was successful. I thought I would save time by using Moneynet as their search is even easier. I played with the search engine until I worked out the most I could borrow. This was because I was going from a two salary situation to one. I chose my mortgage and then my house. I made my offer and then did a celebratory click. I was asked on numerous occasions if I wanted to talk to their advisors but I avoided this. I knew what I wanted and I have done this mortgage game before. However, I was told I would be called. The chappie asked for all my info again:mad: and told me that I could not have what I wanted. Being a kind and generous sort I listened to all he advised. As the week went on he asked how I already had a mortgage and that i could not have 2 (um I already have a house and surprisingly a mortgage young sir and I want an new one of each.) He came back with an unbelieveable figure and asked more questions which I had answered on numerous occasions.He also informed me of problems with my credit rating.
That is when I posted here. I didn't want to lose my house or let down my buyer or vendor. That is when I decided to employ Andrew Smith due to the knowledgeable content of his posts and liked the look of the website.
Within a week he had discussed my situation with a lender, I had checked my credit rating (glowing) all the paperwork had been sent and received. The eficiency of the man is scary. It is so important in house buying and selling because there can be so many hold ups. In my situation he has prevented us defaulting on the mortgage which was my concern all along.
I have had quite a few mortgages in the past. I am confident with selecting financial products. However in my opinion using a competent mortgage advisor more successful and efficient.
CG.:j

rossbenn

Beena_Rashid wrote:

Can someone clear this up for me please?

Martin says that the second key question to ask a broker is "do you charge a fee?" and if the answer is "yes" to seek another broker.

My mortgage adviser charges me a fee for giving me advice, and says that this is because she is an "independent mortgage broker".

She says that if I dont use an independent broker, I cant be offered all the mortgage deals in the market.

I have contacted another mortgage adviser, who was recommended to me, and he says that he is not an independent broker, he doesnt charge a fee, but can get "whole of market"

I am confused.

Does it mean that all independent mortgage brokers charge fees?

Not all independant brokers charge fees.
People in Ballymena where I have my office will not pay fees, and rightly so.

We are payed by the lender for introducing the mortgage, to ask for more is just greed.

And yes, we are independant whole of market. I hope this clears up your question.

BFN Ross

rossbenn

Beena_Rashid wrote:

Let me see if I understand you quite correctly.
You said - "No" - to the question "Does it mean that all independent mortgage brokers charge fees"

The reason I need to be sure on this is becasue I have just phoned my second advisor (I am about to make an offer on a house I have seen!), and I discussed this "independent" issue with him, and he said that if he wanted to be an "independent" he could be, but he would have to charge a fee, and he doesn't want to do that.

He says that it is in the new mortgage regulations that if he wants to call himself "independent" he has to charge fees.

Sorry to go on about this, but when Martin says "seek another broker" if they want to charge you a fee, I feel sure it must be good advice, but at the same time, I feel I am being misled a little by this first adviser.

I suppose what I really want to know is - can a mortgage broker be an "independent mortgage broker" and offer a "fee free" service ?

My second broker says, categorically "No they cant - they are bound by the regulations to charge fees, so there is no such animal as a "fee free independent mortgage broker" and that is why he is not one.

Who am I to believe ? help ! I need to make a decision.

In that case let him/her charge you a fee and then rebate it back to you.
We would'nt want he/she to get in to trouble with th FSA would we?

Problem solved, but will he or she like it ???

payless

An independent needs to offer client option to pay by fee ( with all commission rebated) , thats not to say he can't also offer a commission based service ( either with or without topup fees)

poorbutgettingricher

my brother has just arranged my mortgage, life assurance, buildings and contents etc, and does not charge a fee, to anyone! (i'd be very upset if he charged his own brother)

he also gave me 25% of the fees that he gets from the companies, as i was setting up for the first time, and kind of like his moving in present!

having seen the paperwork from the lenders etc, in particular the mortgage, which is for 102600, he gets £1500 on completion, which i think is very good for roughly 10 hours work, along with £150 for taking out life cover, and a monthly payment to him for every payment i make to the life assurance company, so, for a little over a 2 1/2 days work, hes netted himself nearly £2000, along with those little payments every month. not bad, but its not regular!

he was telling me that he is thinking on charging a fee to new customers, and refunding it if they use him for a mortgage etc. as hes fed up with people using him for free advice. as he doesnt get paid to give out free advice, which i agree on 100%.

dunstonh

he was telling me that he is thinking on charging a fee to new customers, and refunding it if they use him for a mortgage etc. as hes fed up with people using him for free advice. as he doesnt get paid to give out free advice, which i agree on 100%.

That is an option which is starting to be quite popular and understandable.

payless

25% to his own brother - I gave mine a lot more !

marcovan

Hi all,

I have been in contact with a broker who claims to be an "independent" broker but he does not charge a fee either???

Im confused as I was under the impression that in order to be classed "independent" then you had to charge a fee?

dunstonh

Im confused as I was under the impression that in order to be classed "independent" then you had to charge a fee?

No. You have to offer the facility for the client to pay by fee if they choose. You dont have to be exclusively fee based.

If you said to him that you wanted to pay be fee, then he has to transact on fee basis as described in his initial disclosure documents that were given to you. If you said to him that you prefer commission, then that is fine.