Should I use John Francis Mortgage advisor? How do they get paid

chrish12345

Hi all

Im looking for a first time buyer mortgage. I had a chat with a mortgage advisor from John Francis just to see what they could offer really.. She said that she does not charge a fee and does not get commission. She gets a standard wage and no bonuses etc..

So is this genuine? How do they get paid?

I am new to this game so trying to get my head around a few things. Can anyone reccommend a good site for finding a mortgage?

Many Thanks

Senior_Paper_Monitor

At the front of all principles laid down for mortage advice is that the customer should know what they are paying - it appears you don't (so someone is failing in their responsibilities).

The lady herself may not be getting any fee or commission BUT if I have found the correct website then the company she represents are ...

"There may be a fee for mortgage advice, the precise amount of the fee will depend upon your circumstances but we estimate that it will be £500"

from .... http://www.johnfrancis.co.uk/mortgage.htm

- both items should be clearly defined on any KFI (Key Facts / Illustration document she gave you).

I am somewhat concerned that at best she has failed to explain what is happening clearly - and at worst has deliberately mislead you with 'clever words' about what she receives.

£500 plus commission is a fairly high fee level.

You will also find many comments elsewhere on this site about 'the wisdom' or otherwise of using estate agent based mortgage advisers from whose company you are buying the property. I have a document we now publish on this issue which I am happy to send you if you wish (simply PM me and I will send a link back or send your email by PM and I will send as attachment).

chrish12345

Thanks, she definately never said that! Ill pm you my email address now, thanks.

Do all mortgage have fees? Can anyone reccommend one?

dunstonh

So is this genuine? How do they get paid?

This is possibly a breach of principles here although it obviously depends on how it was presented.

Whilst the individual may be an employee paid a wage, the employer is paid the commission or the fee you agree. The employer then pays the employee their wage.

£500 plus commission is a fairly high fee level.

£500 with commission rebated or offset is more like a suitable level.

Do all mortgage have fees?

Yes. Unless you get a fees free one but they increase the mortgage rate to cover it. So, you end up paying them one way or the other.

Can anyone reccommend one?

An upfront and honest mortgage adviser

kingstreet

Senior_Paper_Monitor wrote: »

- both items should be clearly defined on any KFI (Key Facts / Illustration document she gave you).

Or the initial disclosure document?

Bet they never provided one!

magpiecottage

chrish12345 wrote: »

So is this genuine? How do they get paid?

Somebody has their head screwed on and realises there's no such thing as a free lunch!

This sounds like a breach of MCOB 4.4.1R (which requires the issue of initial disclosure documentation), Principle 7 (information must be presented in a way that is clear, fair and not misleading) and possibly Principle 1 (business must be conducted with integrity - that would depend on whether the misleading presentation of the information was deliberate or merely reflected the adviser's incompetence).

You can report it by e-mail to [EMAIL="consumer.queries@fsa.gov.uk"]consumer.queries@fsa.gov.uk[/EMAIL]. This is not a place to take a complaint but you have not lost out. It is simply a means for consumers to raise concerns about the behaviour of individual firms.