Broker Takes Client to Branch to Apply

chambta

An odd thing happened the other day and I wondered what thoughts other have on it.

We had a non customer call the bank branch I work at to book a mortgage appointment. Nothing odd in that as we have some pretty good deals on.

Anyway a nervous youngish lady presents herself to me, promptly joined by who I learnt was her mortgage broker. Now he'd advised her to take a particular deal out and of course I was happy to oblige. But, given he was taking a fee for his services, as he explained, is this good practice for the broker?

Other customers have actually been directed to us by brokers who can no longer offer deals through broker channels and I assume they've unfortunately missed out on any fees for doing so.

Is this sort of practice becoming more common in the market brokers operate?

TEDDYRUKSPIN

New to me. Does'nt sound right. I have heard IFA / MA charging a fee and then telling them to go to the financial institution. But not taking them there.

Joe_Bloggs

MSE Martin does mention that one of the drawbacks from going direct is 'sales pressure' to take on insurance products from the direct seller. If you are a first time buyer then an advocate at you side can advise you on what is going on and if it is in your interest. Perhaps they can explain terms or even strike a bargain ?

J_B. (What we forget is how ignorant we once were.)

koexelek

TEDDYRUKSPIN wrote: »

New to me. Does'nt sound right. I have heard IFA / MA charging a fee and then telling them to go to the financial institution. But not taking them there.

It's not something I woud do personally.

But if the lender is acting 100% in the clients interests, they should have no issue with having a third party there as a witness.

Joe_Bloggs

I can't see how the lender can act 100% in the clients interest. Surely it is the lenders purpose to make the most from their client without driving them away to another lender.
J_B.

dunstonh

I think the broker has acted fairly and sensibly.

I had a client do an investment in the week and their bank tried to derail it by making a load of false accusations against IFAs and trying to make HSBC sound better. Most of it was outright lies as well. e.g. HSBC are bigger and you may lose your money if you invest with an IFA, HSBC have better returns, HSBC is cheaper. All of which were not true.

I think the broker in this case was trying to protect their client from what has become a disagraceful level of sales pitch and lies that the banks give out.

An independent mortgage adviser is fee based and fee based advice is the future.

TEDDYRUKSPIN

I do laugh sometimes. Either way, IFA or branch based IFA / MA, they are all partly sales. All of you have been trained in the art of sales and are all after business. None of you can say, that you are not after a person's business. Without business - no money. Simple!

Dunstonh is correct. Commission based will be scrapped or non-existent soon. To be honest - it is so difficult to survive on commission basis. Fee based is the future and is more fair. The customer will obtain true whole of market service unlike restricted commission based.

Dunst, investments, pensions, life is a completely different ball game. It's correct that an IFA is the best way to go. But...many banks excluding building societies now have IFA's for HNW customers. Depending on the amount most of them do actually obtain whole of market information.

Obviously if you come in with a minor investment ranging from £3k to £20k, you won't get much service. Mainly due to the fact, the money made on these investments is minor and little.

Anyway....... Independent MA or not.......people have got smart.

chambta

koexelek wrote: »

It's not something I woud do personally.

But if the lender is acting 100% in the clients interests, they should have no issue with having a third party there as a witness.

Absolutely. I had nothing to hide. Customers can bring who they like. I had to treat it as a non advice sale in the normal way and gave them the various options otherwise I could have had an issue with our compliance departments and they do call customers. I even notes his presence on the system notes to ensure it was all above board.

Joe_Bloggs

I hope all parties were satisfied and that the deal went ahead. As a consumer I don't see a problem as we are not born with or educated upon the minutia surrounding the financial matters of mortgage deals. As a consumer, one tends to pick up a rudimentary understanding through luck, trial and error, personal research or advice.
J_B.