MSE News: Lenders' mortgage broker snub 'could harm borrowers'

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This is the discussion thread for the following MSE News Story:
"The proportion of mortgages sold via brokers has fallen since the credit crunch began as lenders make many of top deals available to those who apply direct to a bank or building society. ..."

Read the full story:
Lenders' mortgage broker snub 'could harm borrowers'


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Comments

  • MORPH3US
    MORPH3US Posts: 4,906 Forumite
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    The only time I have used a mortgage broker, he was only interested in flogging me the mortgage that made him the most commission....

    Obviously I told him where to go and haven't used a broker since.

    So its no surprise that they are losing business.
  • foreversummer
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    They are not all bad.

    Mine advised me to go with a fee-free Lifetime Tracker at .94% above base rate in 2008 rather than the fixed rate I enquired about.
    He could have quite easily steered me to the shorter-term fixed.

    I'll probably never have to remortgage again now thanks to him and his honest, genuine service.

    Foreversummer
  • dunstonh
    dunstonh Posts: 116,625 Forumite
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    The only time I have used a mortgage broker, he was only interested in flogging me the mortgage that made him the most commission....
    Unusual as most mortgages pay virtually the same amount. However, fee based advice gets round that perception.
    So its no surprise that they are losing business.
    All the mortgage advisers I know seem to be rather busy and having record years.

    I think what has happened is that the newbie advisers and quick buck types have gone or are going and the longer established ones are running fine. So, whilst the volume overall is down, its not being noticed as much by the established firms. I dont see that as a bad thing as there were far too many mortgage advisers for the peak levels of business let alone the lower post crunch levels. So, a Darwin event is helpful.

    Also, lenders are currently favouring in branch as they need to do something with the staff they employ whilst lending volumes are lower. Once they get back to capacity, they will start to focus more on brokers again.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • 0james0
    0james0 Posts: 523 Forumite
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    It's very rare that any clients will feel in safe enough hands to go direct to a bank, often any savings are lost through taking out the associated insurances direct through the bank also, which from my experience tend to be over priced.

    It would make life easier all round if dual pricing was stopped though.
    Saving and spending in equal measure
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