Do I Need Mortgage Insurance?

AndrewSmith

But not every fees free adviser is estate agency based. There is nothing you can tell me about how estate agency bsed brokers work having previously been a sales manager and sales director for such a company prior to establishing my own firm.

It is not being a 'Jack of all trades' ensuring that the largest debt of someones life is adequately protected. it is called doing the job properly and acting in a responsible and professioinal manner, as opposed to simply not bothering with it cos it takes too much of your time.

You have still not answered the point about your remuneration for the referral to the IFA and whether they charge the client yet again?

Conrad

AndrewSmith wrote:

I agree with Dunstonh,

However as you will agree that does not apply to all mortgage brokers.

What conrad seems to be advocating is that it is better to simply not mention it rather than discuss the issue.

Conrad is assuming that all fees free mortgage brokers do not know about the correct protection strategie to apply to each situation. Totally unacceptable and incorrect.

Andrew, how many more times?

I encourage clients to carefuly consider protection both verbally and in my Reasons Why Letter. THAT DOESNT MEAN I HAVE TO BE THE ADVISER.

Id rather they took the requisite time and space to make informed decisions away from the complex mortgage advise space.
I prefer they see a dedicated protection specialist.

It is absolutely the case that all brokers try and sell CIC policies even where the client has an existing one. To my mind this is very likely to fall into the mis - selling arena.

AndrewSmith

:rotfl: :rotfl: :rotfl: Ill informed prejudice tripe :rotfl: :rotfl:

Conrad

AndrewSmith wrote:

It is not being a 'Jack of all trades' ensuring that the largest debt of someones life is adequately protected. it is called doing the job properly and acting in a responsible and professioinal manner, as opposed to simply not bothering with it cos it takes too much of your time.

You have still not answered the point about your remuneration for the referral to the IFA and whether they charge the client yet again?

It is prefectly responsible to ask people to consider protection by consulting a protection specialist.

Of course I get a small comission where the IFA does business with clients, but its vastly less that the figure I was earning when arranging protection myself.

Time is finite. Thats why I specialise.

Ill see a plastic surgeon if I ever fancy a facelift, not a GENERAL practicioner.

AndrewSmith

So if you are paid a commission one assumes that the IFA reoups this cost by charging the client a fee?

Conrad

AndrewSmith wrote:

:rotfl: :rotfl: :rotfl: Ill informed prejudice tripe :rotfl: :rotfl:

Is'nt that what you all said when the Daily Mail got on the endowment case a few years back?

Even 4 years ago I was getting correspondance from Scottish Provident, Prudential and Swiss life which set out why CIC definitions were being tightened.

There can be no justification for replacing existing decent CIC plans with newer models, but still it pervades.

I know many sales Managers who's only concern is how much CIC has been sold today. The mortgage business barely gets a mention even though they market thier companies as MORTGAGE ADVISERS!

Conrad

AndrewSmith wrote:

So if you are paid a commission one assumes that the IFA reoups this cost by charging the client a fee?

Absolutely not, he is'nt greedy.

AndyWallace

Conman wrote:

I was one of the lone voices way back when, critiscising the FS industry for endowment selling. At the same time I stopped selling Personal Pensions and would'nt touch bonds with a barge pole.

Fast forward to the late nineties and we found out that indeed the above products were very very poor value for money and that mis - selling had been uncovered on a grand scale.

I now predict the same is about to unfold with regard to Critical Illness and Income Protection policies. The FSA has just levied 2 huge fines against brokers selling mortgage payment protection - tip of the iceberge, and long overdue.

Brokers who promote thier 'free service' in my opinion are being economical with the truth. What they actualy are is insurance salesman and you can be sure that at thier monthly sales meeting much of the conversation will focus on insurance sales figures.

In terms of best advice, yes its at the core of everything I do, thats why I refer them to a specialist protection adviser who is dedicated to nothing but the subject.

This has to be best practice as it ensures the adviser is'nt spread too thinly in terms of knowledge and time AND allows the clients plenty of time and space to make the right decisions (ie not bombarded with huge volumes of insurance and mortgage information by one advice giver)

I can't believe you refer protection to a protection specialist, who might as well do their mortgage while they're at it. Probably fees free.

I also can't believe most of what you say, I'm sorry. You say that 15 years ago you stood up in seminars voicing your concerns over endowment mis-selling. That would make you quite senior in terms of your age but your vocabulary and grammar appears to indicate a much younger person.

As for specialist advice, do you honestly believe that to be a competent mortgage adviser you need to be doing only that to be any good at it? For me, it's all about initial education and ongoing updates on industry progression. I learned how to spell when I was 5 but 30 years on I can still spell most words without the need to keep referring to a dictionary. The same goes with my mortgage training. I don't need reminding that a 'fixed' rate mortgage will mean that the monthly payments will remain the same for the fixed rate period. I suppose I'm really proud to say that this information is in-built into my knowledge of mortgages. As for what products are on the market, well I'll admit my brain can't handle all of that information so I use sourcing softwares to help me. I admire you for knowing everything about mortgages Conrad but still think there is enough room to retain information and knowledge on other things.

Unless like Ruby Wax you have hyperlexia of course, which would explain your need to keep referring to mortgage literature and BDM's etc to find out what's going on in the market.

Andy

rmh_3

Be VERY careful when signing up to this type of insurance READ THE SMALL PRINT CAREFULLY. This insurance has been on BBC Watchdog several times. The insurance companies will do everything they can to AVOID paying out. If you went to the doctors in 1996 for a sore throat and did not mention this on your application form, then you insurance can be voided - as you have not supplied them with ALL your medical details! Even if you get a heart attack that has nothing to do with a sore throat!

It's a rip off, and people who sell it are con men!

AndyWallace

rmh wrote:

Be VERY careful when signing up to this type of insurance READ THE SMALL PRINT CAREFULLY. This insurance has been on BBC Watchdog several times. The insurance companies will do everything they can to AVOID paying out. If you went to the doctors in 1996 for a sore throat and did not mention this on your application form, then you insurance can be voided - as you have not supplied them with ALL your medical details! Even if you get a heart attack that has nothing to do with a sore throat!

It's a rip off, and people who sell it are con men!

Not another one.

In order for a company who does not know you from Adam to insure you, they need to be aware of any relevant facts. Any application form you complete will cover your medical history. If your application is honest and true then there is no basis for rejection.

Andy.