Mis-sold sub prime mortgage

dunstonh

£3000 fee is disgraceful. I charge less than that for handling far higher risk and more complicated advice issues. Some mortgage advisers need a reality check and its not fair on the majority of good ones that get tarnished by the bad.

However, if you agreed a £3000 fee at the start and you have been charged £3000 then you cant really complain about it. I wanted my garden sorted many years back. I got quotes ranging from £1000 to £5000 for the same thing. If I had gone with the £5000 one, I couldnt complain about the cost later.

Conrad

dunstonh wrote: »

£3000 fee is disgraceful.

Celebs can charge far more for no work at all - just an endorsement. Lawyers too.
I dont have any issue with fees as long as the OP knew up front.

I am perplexed by advisers that work for anything less than £100,000 pa - long hours, immense worry all the time, risk of being sued (a really honest IFA I know got a massive fine recently and it really was not his fault and his PI did not payout). Fees are your freind. IFA's offer a great service often, but clients desperate for a mortgage (ergo a home) will perceieve more value than someone selling something such as a pension - rightly or wrongly.

I charge large fees where there is a potential risk to me. For example an older person wanting interest only. I am very careful and thorough but in this letigious culture there is still a risk to me (my family in effect) so I want to be remunerated accordingly. Too many practioners rely on thier pi cover to come to the rescue, but there is a big risk it will not pay out even for the most careful advisers - read the small print and you'll see what I mean.

In other words we like a footballer may have a limited life as an adviser - so need to make as much as poss.

Another point - I've know 4 advisers in thier 50's die or suffer cancer recently. I'm sure it's down to the constant nagging stress and worry about cases going through.

dunstonh

I am perplexed by advisers that work for anything less than £100,000 pa - long hours, immense worry all the time, risk of being sued (a really honest IFA I know got a massive fine recently and it really was not his fault and his PI did not payout). Fees are your freind. IFA's offer a great service often, but clients desperate for a mortgage (ergo a home) will perceieve more value than someone selling something such as a pension - rightly or wrongly.

I dont disagree. I know one IFA that sets his minimum charge the same as the excess on his PI policy. Although typically his market is top end and it serves the purpose of looking cheap for them but expensive for the lower end which he isnt interested in.

I set my own minimum fee at £500 to match the FOS fee just in case you get some trouble making twerp. However, I cap my initial fee at £2000 for clients on my servicing contract. Although I have the luxory of being able to afford to do that by being around long enough to build up the business. I fear the rule changes coming in future will make it hard for new entrants to be affordable and make a living at the same time. Although I am really looking forward to those changes.

I wont employ IFAs that earn under £100k a year and mortgage advisers that earn under £50k. Its not worth it from my point of view and the hassle isnt worth it for them.