What do you look for in a broker?

The_Loan_Voice

There is a saying in the legal profession "that a man who represents himself has a fool for a client"

Now, I'm not saying the same is true when picking mortgages but, I would offer this: The general level of financial awareness in this country, if converted to an IQ score would not even make double figures.
Before you all rush in to take issue with that statement consider that you have all preselected yourselves as financially astute (or wishing to become astute) just by being a member of this site.
What I am referring to is the general population, those that feel intimidated by overly complex financial products and take products with little or no consideration. These people need the services of good honest brokers, brokers that are committed to delivering the best advice and selecting products based purely on the clients need and preferences without consideration of the commission. Does that mean that they should not be paid for there work? certainly not, this is a profession like any other and I doubt any member of this site could stand up and say, hand on heart "I work unpaid"
I believe that it was the clear intent of the FSA when drafting the MCOB rules that they desired that all members of society should have access to professional advice, that the standard of that advice should be measurable, the adviser accountable and that no particular group of consumers should be placed at an unfair advantage because of there circumstances. The "independent" tag whilst confusing in its use is, logical in its construction, the truth is most brokers don't like it because the public don't like it. hence, in operation we end up with a diluted and polluted form, that serves no one

Moreover, My interest resides in the Brokers that deliberatly target and then prey on these

The_Loan_Voice

right, lesson learnt... don't hit the return key or you get half a post..

as I was saying, deliberate targeting of the unaware by some brokers

Over the last two decades I have seen all manner of tricks and stunts pulled by financial advisers and I included those selling Loans under the CCA.

From the cutting off of the bottom of the old credit reports before sending the application to the lender so as to "lose" the court judgments to the charging of a £50 "deposit" by a mortgage broker to obtain a credit report costing £2 when dealing with Right to Buy clients. You only have to look around the t'internet to see national brokers charging £2000 & £3000 advice fees for relatively straight forward mortgages and as for the lump sum ASU policies pushed by many costing 5 times the monthly benefit but carrying a commission of up to 70% of the premium

Yes its true.. £1000 monthly cover costs £5000 as a lump and has £3500 of commission built into it.

Whilst I accept that all those who access this site want to save money and that may include not paying broker fees or even allowing a broker to be paid a commission and good luck to you all. I for one will not be pushing the regulator to change anything in this area, it is after all the public that have set the real policy, but I will continue to push for changes that make it harder and harder for brokers to get rich quick of the back of the uninformed:mad:

Arch-Angel

simonbh7 wrote:

You won't spend 5 hours per broker though will you. You might spend 5 hours in total! This then, using your figure of £250 back, equates to £50 per hour which to many people is worth it.

I have no idea how long it would take per broker since i've never used one! (FTB). Appreciate the correction though.

MortgageMamma

Depends on the broker, how they work, how much time they spend getting to know you. I know most of the info I need to know about my clients before I even get to fact find stage as I work mainly via email - keeps the phone bills low and my clients seem to like it as they have permanent reference and also do not feel they are being pushed/intruded upon

tomstickland

Having read a good deal of this thread I think it's very sad that some of the brokers who regularly posted on here with useful advice are staying away because one or two posters keep harranging them about their broker status.

AndrewSmith

tomstickland wrote:

Having read a good deal of this thread I think it's very sad that some of the brokers who regularly posted on here with useful advice are staying away because one or two posters keep harranging them about their broker status.

It's all about priority Tom to be honest.

I used this site as a way to unwind from the stresses of the working day and to offer help free of obligation etc, as it is in my nature. I have also found the site very useful on a personal basis when looking at moneysaving tips for other areas such as Tesco points etc.

I also used it to help take my mind of certain issues I have had to contend with over the last couple of years such as my Father being diagnosed terminally ill with cancer, followed by his now having developed the early stages of fast progressing Alzheimer's. He is a man to whom I owe my business acumen and my guiding moral principles. I find his illness' hard to cope with thus used this site by way of release.

I had another tough period earlier this summer when my partner had a breast cancer scare, hard to cope with for us both with everything else going on.

So you see my guiding motivation for using this site is one of selfishness. It is a way for me to escape some of the issues that keep me awake every night and do something useful (or so I though) at the same time.

It is obvious that there are some on this site who hold myself and others in complete contempt and are persistant in their claims that we post only to gain business.

I find this personally offensive and very upsetting given my true reasons for offering help on the site and have decided that why the hell should I bother any more when I am pathetically accused of self promotion by idiots who know NOTHING about me or my life or the reasons I post here (until now of course).

I do not expect or want sympathy for the situations I have to deal with, they are my personal issues and involve no one else, however I feel it is important for me to give the reasons and motivation behind my use of these forums so that the idiots making pathetic accusations against me can now hopefully feel just as small as they should, and how they are viewed.

Those who know me well will know that I speak only the truth and will know how hard this will have been for me to divulge, giving an indication of just how damned annoyed I have become by it all.

MortgageMamma

Andrew - knowing you reasonably well I know you wouldnt have said that unless you were pushed to the limit - hope everything is as good as it can be for you - I know its difficult(with your caring nature) and I too rise to the bait most of the time, but try and ignore the sceptisms and plod on doing what you do best - there is no bigger insult than complete ignorance! :grouphug:

silvercar

This thread has been read 1389 times! Just because one or two make scathing remarks doesn't mean the remaining 1387 don't appreciate your valuable input!:A

Your sig is misleading: I am a Consumer
My opinions on these forums are my own and should not be scoffed at just because of the job I do

will have people wondering if you are a tax inspector/ double glazing salesman / debt collector or an estate agent:eek:

homer_j_3

I think that Loan Voice has made a very valid point that people outside of the MSE world are very financially niave. This is SO easy to forget in here because we all share a common interest in looking after our own and other peoples finances.

I have come to the conclusion that without the input of the long term posters, this forum would not be the established forum that it is. It wouldnt have lasted long just posting links for people to read as people dont have time and often want specific answers to specific questions. They may not have time to read a full article or if they do, not have time to fully appreciate and digest. That said, posting a link does not harm or make the thread any worse.

Just look at the amount of posters that come on here saying "first time poster, please go easy on me" or people " What should I do with regards to.." or "I am not sure what this is/means" This is the reason for the forums. This in itself shows that there is a need for education and that these people are the few that will actually get off their backside and ask.

Looking at Joe Public who works very hard for their £250 a week to keep food on the table and their children in clothes, I understand why they do not have time to understand the ins and outs of their finances. Just as they probably shop at the same supermarket, bank with the same bank and will use the same travel agent to book their well deserved holidays. They do not understand the money they can save to allow them because they are so tied up in their own lives.

We have discussed the requirements for brokers 100's of times, and I think that there is market for brokers, a market for people to do their own mortgages and for people to use cashback sites. Its all down to the audience, on here the audience are slightly ahead of the general public as far as understanding finances are concerned.

kenshaz

personally think that Arch-Angel summed it up quite well.

A lot of people who simply remortgage regularly to get a better rate ALREADY research the market and then go direct to the lender.They don't need a broker if their situation is straightforward and they have the intelligence to understand all the details of their chosen mortgage.

I agree and a degree of sophistication is required.But like the corner shop a need will always exist,and statutory regulation has created a safer environment for those who find the need to seek help.:money: