My Brokers Joke with a Jab!!

BurntOut

Just found out yesterday that my broker is not to happy with me lookin for a better deal on things like:

Mortgage Life & Critical Illness Cover etc (also MPPI, B&C insurance)

I had asked him to remortgage some time ago and things are getin rollin now. However since I frequent here I had taken the opportunity to look for better deals on the old protections.

He has organised my re-mortgage with my same current supplier (Woolwich), and then sent me out my new Mortgage Life & Critical Illness Cover at a whopping £45 per month (legal & general). I have since found Norwich Union do the same for £26 per month.

I contacted him to tell him that I would organise my protections myself and I am now gettin the old guilt trip but put forward jokingly. Awe big man your taken money away from me etc.
To which I replied sure you'll still get your commission from organising the re-mortgage. But apparently (???) most of his commission comes from the policies he flogs to you.
Then he went on to say that usually they would charge a fee for advice if I did get the protections myself, usually about £250 (is this excessive)?

I am feelin down now cos he is a m8 I have grown up with, but in fairness no longer see regularly, just when I need my mortgage sorted.

The way I look at it at is I need to do whats right for me & my partner, we need to be able to afford to pay our bills etc. Also I got an Advisor as I thought they would be checkin everywhere to get me the best deal, which in this case obviously isnt true.

Very disappointed at the mo in my m8's attitude, I have planned to meet him tomorrow in his office to discuss.

Thing is will it affect my re-mortgage position if he was to take it thran with me lookin at my protections elsewhere. The lending company have been out to re-value house, and I guess I am hoping if it does go pear shaped with him the lender will only be dealing with me at this stage (eg sending me my forms to sign and send back to them)

Anyone any advice???


PS sorry for ranting!

mrcow

BurntOut wrote:

Then he went on to say that usually they would charge a fee for advice if I did get the protections myself, usually about £250 (is this excessive)?

NO offence meant to any brokers out there, I work in sales myself, and I know how tough it can be.

In my experience, brokers will say just about anything to get you to do business with them. They'll go along with the "friend" ploy, but at the end of the day, all they want is the commissions they can earn of the back of you. This guy is not your friend, he only wants to see you when there's the potential of making more money out of you.

£250 for advice!! Did he gold plate it? Did you sign anything with him to say that you'd pay him if you didn't take out his expensive policy? If not, then he can take a running jump.

Don't let guilt come into it where your money is concerned!

BurntOut

mrcow wrote:

£250 for advice!! Did he gold plate it? Did you sign anything with him to say that you'd pay him if you didn't take out his expensive policy? If not, then he can take a running jump.

Don't let guilt come into it where your money is concerned!

No nothing signed with him ever

Ps thanx for your response,

dunstonh

He has organised my re-mortgage with my same current supplier (Woolwich), and then sent me out my new Mortgage Life & Critical Illness Cover at a whopping £45 per month (legal & general). I have since found Norwich Union do the same for £26 per month.

Considering the pricing difference between L&G (independent version) and NU, it appears that your policies will not be like for like. More often than not L&G are cheaper than NU but the differences would be no more than £5 a month.

By any chance, is your broker tied to Woolwich? IIRC, Woolwich are tied to L&G and L&G pricing for tied advisers is much higher than independents.

Emmzi

Price fee hourly advice from other IFAs and see if he'll match it??

Other question is - with everything you know from MSE - do you need a mortgage broker?

BurntOut

dunstonh wrote:

Considering the pricing difference between L&G (independent version) and NU, it appears that your policies will not be like for like. More often than not L&G are cheaper than NU but the differences would be no more than £5 a month.

By any chance, is your broker tied to Woolwich? IIRC, Woolwich are tied to L&G and L&G pricing for tied advisers is much higher than independents.

Unsure about the latter, he could be, he had initially mentioned a mortgage deal with Abbey, but then contacted me about a better deal the woolwich was doing.

BurntOut

Emmzi wrote:

Other question is - with everything you know from MSE - do you need a mortgage broker?

I know m8, tell me about it, when it comes to the Gettin The Mortgage part I wouldn't know where to start. LOL

A Lesson Learn't Here Mee-Thinks!!!

dunstonh

Before you pat yourself on the back, something is not right. L&G pricing compared to NU would not have that difference on like for like cover.

You are almost certainly not saving that amount of money because you are not using the broker but because you are not getting the same level of cover. Had it been a tied adviser then that sort of difference would be right. However, not with an independent.

I suggest you review the policy again and see what you have left off.

Other question is - with everything you know from MSE - do you need a mortgage broker?

Independent Mortgage brokers can source hundreds of mortgages almost at a press of a button. They also have mortgages not available directly. Many mortgage brokers dont charge any extra meaning it costs you no more to use them and get them to do the work than you doing it yourself. The mortgage section of MSE has had its fair share of people who thought they could do it themselves only to find out that the deal could have been bettered.

BurntOut

dunstonh wrote:

Before you pat yourself on the back, something is not right. L&G pricing compared to NU would not have that difference on like for like cover.
.

Thanx for your response:

But as far as I can tell its the same kind of policy.

Joint Mortgage Life & Critical Illness Cover
Level Term Assurance
Decreasing Term with Guaranteed premium

Could it possibly be what each company cover??? thats the difference??

BurntOut

BurntOut wrote:

Thanx for your response:

But as far as I can tell its the same kind of policy.

Joint Mortgage Life & Critical Illness Cover
Level Term Assurance
Decreasing Term with Guaranteed premium

Could it possibly be what each company cover??? thats the difference??

Though I have noticed now my L&G also includes something called Waiver Of Payment??

dunstonh

Waiver would only account for a couple of quid.

CI is available in comprehensive and budget options. It is also available in guaranteed and reviewable (you mention the decreasing term is guaranteed but no mention if it applies to all sections of the policy).