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Mortgage Broker/Company - Does this sound dodgy to you ?

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I'm looking to remortgage, so i went and had a look at moneysupermarket.com, i filled in the form on there to get one of the advisors to come and see us. We did this last time we remortgaged and were very happy with the deal we got.

This time however, the guy we got came from a company called "Mortgage Insight", after running through all the details (wages, income, years, mortgage we wanted) he then launches into the spiel about his company - i know they are supposed to do this according to FSA rules.

His spiel however is not just a remortgage, but selling us a financial planner service, so they look for the best way to insure us with the best deals, if we need a loan they sort it out, when we remortgage again they will have already looked out the best deals in time for us etc etc.

By this time i'm thinking, "so how much does this cost! i only wanted a flipping mortgage", and he drops the bomb that it costs £3k for their "25 year service". This 3k is added to your mortgage when you complete the first remortgage with them. They claim to be able to "save us" at least £13k over the 25 years.

Now does this sound completely bent to anyone else ? last time i remortgaged it cost me £0, as the guy just got a commission from the Nationwide for the sale.

Anyone had experience with this sort of thing ?

Comments

  • toonfish
    toonfish Posts: 1,260 Forumite
    it's not a new concept, but I wouldn't pay £3K on a promise of a service that may never materialise. Find a fee free broker.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.



  • I am aware of Mortgage Insight and AFAIK, the service they offer (which your guy has referred to as their Financial Planner Service) does exactly what your membership of these forums does.

    http://www.mortgageinsight.co.uk/Default.aspx?tabid=1537

    ie. they regularly remortgage you to make sure you are on the best rate possible. Although my reading of their site gives me the impression that they are big fans of offset mortgages.

    Smart Spending - they make sure you switch utlity suppliers, use stoozing where poss, get the best deals available on insurances and loans etc.

    All of it very worthy and a good thing to do.

    Worth paying them £3000 to do it when you are already a member of MSE? let them add it to your mortgage and pay interest on it for the life of your mortgage? - that's where they fall down quite heavily IMO and where I wonder if it is actually very good moneysaving.

    They will use the same facilities such as Moneyfacts, u switch etc etc that most advisers point their customers towards and MSE helps you do much better. After all, they offer one 'Financial Coach' and a 'Personal Financial Assistant'- here there are thousands!!!

    I would be interested to know if they have made any contingency plans to ensure that people will get the service for the full 25 years should they go bust. Just that there was one firm a couple of years ago that offered a 'free mortgage review for life' after paying a largish (smaller than Mortgage Insight) fee on the first one. They went bust and people found they had paid a larger than normal broker fee for the same one off service they could have got for a much lower fee if not for free!!
    I am an IFA (and boss o' t'swings idst)
    You should note that this site doesn't check my status as an IFA, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Rick62
    Rick62 Posts: 989 Forumite
    I think, in my personal opinion, £3,000 is rip off. I would not pay it, nor would I use this firm. So they want you to pay them £3,000 for the privalige of them hard selling insurance!

    When you go through Moneysupermarket, or most sites, they will connect you to a broker, not the same broking firm each time. If you are happy with the broker you used the last time then I would recommend that you go back to them, if they are still around.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • HelpWhereIcan - Are you Hull based ?
  • AndrewSmith
    AndrewSmith Posts: 2,871 Forumite
    Dont ever forget that Moneysupermarket.com do not employ or vet or reference or quality check any of the advisers or brokers that they pass your information on to.

    Moneysupermarket are simply a lead generation firm that take your information and auction it as a 'lead' to the highest bidding broker or firm. The only proviso in place is that the broker or firm is FSA authorised.

    Personally I think it is a con that people are urged to use such a site under the auspices of receiving quality advice from a 'recommended or associated firm' where in fact the only association is that the broker or firm has paid approx £50 for your details.

    The broker or firm contacting you really could be anybody so please beware.
  • hookbeak wrote:
    HelpWhereIcan - Are you Hull based ?

    Yes, Anlaby.
    I am an IFA (and boss o' t'swings idst)
    You should note that this site doesn't check my status as an IFA, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ossie1_2
    ossie1_2 Posts: 39 Forumite
    I am aware of Mortgage Insight and AFAIK, the service they offer (which your guy has referred to as their Financial Planner Service) does exactly what your membership of these forums does.

    http://www.mortgageinsight.co.uk/Default.aspx?tabid=1537

    ie. they regularly remortgage you to make sure you are on the best rate possible. Although my reading of their site gives me the impression that they are big fans of offset mortgages.

    Smart Spending - they make sure you switch utlity suppliers, use stoozing where poss, get the best deals available on insurances and loans etc.

    All of it very worthy and a good thing to do.

    Worth paying them £3000 to do it when you are already a member of MSE? let them add it to your mortgage and pay interest on it for the life of your mortgage? - that's where they fall down quite heavily IMO and where I wonder if it is actually very good moneysaving.

    They will use the same facilities such as Moneyfacts, u switch etc etc that most advisers point their customers towards and MSE helps you do much better. After all, they offer one 'Financial Coach' and a 'Personal Financial Assistant'- here there are thousands!!!

    I would be interested to know if they have made any contingency plans to ensure that people will get the service for the full 25 years should they go bust. Just that there was one firm a couple of years ago that offered a 'free mortgage review for life' after paying a largish (smaller than Mortgage Insight) fee on the first one. They went bust and people found they had paid a larger than normal broker fee for the same one off service they could have got for a much lower fee if not for free!!

    Good comments - this site is one of the best I have ever seen and with all of the advice that people give freely and honestly thousands of people benefit.
    Most good advisers will offer their service for a very small fee (if one is actually charged ) and they will continue to do this for you when your deal runs out.
  • dwsjarcmcd
    dwsjarcmcd Posts: 1,857 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    IMHO, anyone who signs up to this type of service wants their bumps well and truly felt! MM's words on this subject are wise and remember even if they provide you with advice everytime you remortgage, they will earn a fee from the lender each time. Any decent broker would bite your hand of for this loyalty, not charge you £3k.

    Just unbelievable!
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