Whole of market, fee-free, mortgage advisors

redzak

Do they still exist? I know there are telephone based one's around but I would like to see someone facet-to-face

Been looking round the Manchester area and cant seem to find any.

Are the lender commissions so bad now that they need to take a fee on top?

As an aside, are mortage advisors affected by the RDR?

FinAdv

Hi,

Thats the truth. Because of the competition alot of lenders dont pay good commission and therefore, the brokers have to charge on top.

Not sure if mortgage advisors are affected by RDR. They are regulated by the FSA but not sure about RDR.

GMS

It really depends on each particular deal. If the mortgage amount was low then there is little commission in it which will soon be eroded after taking into account broker costs. Home visits add further costs.

Would you be prepared to travel to the broker's office? Would you not do it over the phone? Many prefer telephone interviews for the convenience of it.

redzak

GMS wrote: »

It really depends on each particular deal. If the mortgage amount was low then there is little commission in it which will soon be eroded after taking into account broker costs. Home visits add further costs.

Would you be prepared to travel to the broker's office? Would you not do it over the phone? Many prefer telephone interviews for the convenience of it.

Normally, I wouldnt mind doing things over the phone but I think I have a potentially complicated (ish) issue - See my thread on here from yesterday https://forums.moneysavingexpert.com/discussion/2947372, hence why I would prefer to see someone office based.

Happy to be persuaded otherwise.

betmunch

With a complicated situation and a desire to see someone face to face I would be prepared to pay a fee.

Ideally a fee that is payable on completion only, but a fee none the less.

dunstonh

Don't rule out a fee charging independent. This can actually work out cheaper than a fees free whole of market adviser.

lordhaldon

Well done dunstonh, you have put it more politically correct than I would. What would the OP say to his boss if he suggested working for nothing? It's like saying "I want the best deal, I want you to research the market for MY mortgage deal but I don't want to pay you anything so that you can pay YOUR mortgage." Get real.

redzak

lordhaldon wrote: »

Well done dunstonh, you have put it more politically correct than I would. What would the OP say to his boss if he suggested working for nothing? It's like saying "I want the best deal, I want you to research the market for MY mortgage deal but I don't want to pay you anything so that you can pay YOUR mortgage." Get real.

err, no you missed my point. I was asking the question, whether commissions were now so low that a fee had to be paid?

A bit different from the advisor not getting remunerated at all.

When i first dealt with a broker they did it fee free but took a whacking great commission from the mortgage company. The difference now is that apparently that fee needs to be split between the advisee and the mortgage comany.

Incidentally, what sort of commissions/introducer fees or whatever are advisors typically getting from mortgage companies.

Also, am I able to agree a fee off-set deal with a mortgage advisor?

GMS

redzak wrote: »

err, no you missed my point. I was asking the question, whether commissions were now so low that a fee had to be paid?

A bit different from the advisor not getting remunerated at all.

When i first dealt with a broker they did it fee free but took a whacking great commission from the mortgage company. The difference now is that apparently that fee needs to be split between the advisee and the mortgage comany.

Incidentally, what sort of commissions/introducer fees or whatever are advisors typically getting from mortgage companies.

Also, am I able to agree a fee off-set deal with a mortgage advisor?

Standard commissions would be around 0.3%, £300 per £100,000 of loan.

You could agree a fee with the adviser up front. Can be fee up front with commission refunded, or a combination of both.

redzak

GMS wrote: »

Standard commissions would be around 0.3%, £300 per £100,000 of loan.

You could agree a fee with the adviser up front. Can be fee up front with commission refunded, or a combination of both.

Wow, that does seem very low, especially compared to the fees i see IFAs involved in setting up pension schemes getting.

No wonder the RDR is coming for these guys.

dunstonh

Wow, that does seem very low, especially compared to the fees i see IFAs involved in setting up pension schemes getting.

No wonder the RDR is coming for these guys.

A pension and a mortgage are way apart in the food chain of qualification requirements, knowledge and liability & regulation costs. You cant compare the fees for the two. The pension should be more expensive than the mortgage. It shouldnt be that way but its an unfortunate consequence of FSA regulation.