Anyone used moneybackmortgages.com?

PeteW

Hiya,

Has anyone got any feedback on Moneyback Mortgages? They give you half their commission back if you buy your mortgage via them.

Seeing as I've found a better deal myself than H&L could I may as well try and claw back some of that money.

However, I can't find any feedback on them and their website is shoddy as hell… so I'm a bit suspicious.

Does anyone have experience of them and can reassure me?

Cheers

Pete

dunstonh

They give you half their commission back if you buy your mortgage via them.

Unlike an independent who gives you all the commission back and will also consider non commission deals as well which may well make it cheaper over the term of the deal.

PeteW

dunstonh wrote: »

Unlike an independent who gives you all the commission back and will also consider non commission deals as well which may well make it cheaper over the term of the deal.

Do you mean one that charges the customer fees? Not sure how else anyone could give you all the commission back?

dunstonh

PeteW wrote: »

Do you mean one that charges the customer fees? Not sure how else anyone could give you all the commission back?

Correct. Fee basis with commission rebated or inclusion of non commission paying deals often works out cheaper than commission option. Smaller mortgages usually wont but bigger ones certainly will.

Its not quite the same service as moneybackmortgages is effectively letting you use their agencies to submit business and not giving the full broker service (i guess that is why you get half their remuneration back as you are only getting half the service). However, some people assume no fee mortgage advice is best when it may not be.

kingstreet

How about an example Pete,

You come to me and I charge you an advice and arrangement fee, agreeing to reimburse you any commission I receive from a lender we use for your mortgage.

On the average case I have on my screen now, there are 375 broker deals available and that increases to 745 if I include deals only available direct from the lender.

If we use one of the broker deals as that's the best for you, you'll get in the region of 0.3% commission from the likes of Halifax, Nationwide etc. You could get back more than you've paid out and have the comfort of knowing you got the best deal and you got an advice and recommendation service with all the added consumer protection that provides.

If it appears the direct deal is better, you won't get any commission, but you will know you've got the best deal and you'll get the advice and recommendation service, as mentioned.

An outfit offering to give you half its commission, by definition, can only offer those deals available through brokers. On my case above, that means half the products aren't available to you. Is it possible half the commission isn't as good as what the best deal could have given you?

PeteW

Thanks for the help. To explain, I've already gone through the two brokers MSE recommends and neither of them could find a better deal than the one I found myself. I believe L&C include direct lenders in their searches. This happened last time I looked for mortgages and is part the reason why I wouldn't want to use a broker who charges fees.

So as it's the best deal, I'd go for it anyway, with or without Moneybackmortgages. However if I go via MBM I get £273 and the mortgage costs me exactly the same as if I'd gone direct.

kingstreet

PeteW wrote: »

Thanks for the help. To explain, I've already gone through the two brokers MSE recommends and neither of them could find a better deal than the one I found myself. I believe L&C include direct lenders in their searches. This happened last time I looked for mortgages and is part the reason why I wouldn't want to use a broker who charges fees.

So as it's the best deal, I'd go for it anyway, with or without Moneybackmortgages. However if I go via MBM I get £273 and the mortgage costs me exactly the same as if I'd gone direct.

I see. So you've already done the work yourself and you're using MBM like Quidco? I'm surprised you've got a commission paying deal better than the direct alternatives. Would you mind saying what deal you're going for, just to satisfy my curiosity?

dunstonh

I've already gone through the two brokers MSE recommends

MSE only lists brokers that look at commission paying deals. This is partly due to the fact they can handle the volume that being mentioned on MSE brings them. The are no large independent mortgage brokers. That is a trend of smaller firms. They cant be named as they couldnt handle the volume if there were mentioned.

I believe L&C include direct lenders in their searches.

No they dont. They are not independent. They are whole of market. They only consider commission paying deals.

PeteW

kingstreet wrote: »

I see. So you've already done the work yourself and you're using MBM like Quidco? I'm surprised you've got a commission paying deal better than the direct alternatives. Would you mind saying what deal you're going for, just to satisfy my curiosity?

That's right. There were better direct deals but they wouldn't lend me enough so went for Nationwide's 4.29% 5 year fix which seems to be the best option of those that will lend me the money.

PeteW

dunstonh wrote: »

No they dont. They are not independent. They are whole of market. They only consider commission paying deals.

Ah OK, I see. So would there be direct deals that an independent broker could find that aren't listed on comparison sites and the lender's own sites (which is where I've been looking).

Just trying to see if there's anything that could have been missed from my/the brokers' searches.

Thanks for the help.

kingstreet

I don't know if this will work, so bear with me. I love my examples and real comparisons, particularly while I'm running in our new sourcing software, Mortgage Brain.

Nationwide pays 0.35% commission from what I can see. For you to get 50% to be £273, the total commission is £546, so your mortgage advance is £156,000?

Nationwide is offering you the broker deal, 4.29% fixed for five years so you can get the amount you need?

If you went to an independent who charges, say, £245, you'd get the option of the direct deals (if any) which you could choose from if they're better, or failing that, the full £546 from going with the Nationwide deal. You'd have paid £245, so you'd end up £301 ahead.

On this occasion, only Yorkshire BS is better and you're sure you can't get the amount you need from them.

Finally, whichever deal you do take, you're getting advice and recommendation with full consumer protection rather than execution-only "you bought it so tough luck" from the other options available to you.

Thanks for being a bit of a guinea pig, Pete. Probably not a big difference on your case, but I'll carry on working on examples as I'd like to change the way I offer my independent service in future.