How to negotiate a remortgage discount?

6am

After reading an article about possibility to get part of commission back if I go through https://www.moneybackmortgages.com I decided to remortgage.
If I go through https://www.moneybackmortgages.com the bank will pay around 800 pounds in commision to broker and I get 400 back.
Before I go through this route I decided to propose a deal to bank's mortgage adviser. I am going to propose that instead of giving 800 pounds in commission to the broker the bank gives me 400 discount and keeps the other 400. What do you think about my plan? Does it have any chances of success? Thank you.

dunstonh

In other words, you want to go fee basis. In which case, yes. Very many advisers will offer their services on fee basis and some will accept £400 for the transaction and rebate all the commission.

However, you do need to be aware that commission is not standard. The typical amount is 0.3% of the amount borrowed. With smaller mortgages, you could find yourself out of pocket on fee basis.

edit: I just did a couple of nil commission quotes to compare against them and the premiums I was getting out for nil commission were about 10% cheaper than theirs. This suggests that they are not getting very good terms from the providers and the commissions they get are lower than those members of larger networks or clubs. You can see one adviser and he could be paid £300 commission and another adviser with exactly the same product and price to you could be paid £500. Commissions are not equal across all advisers.

A local broker who is a member of a larger network or club may be your better avenue.

Rick62

No, I would be amazed if any lender agreed to your proposal.

Moneybackmortgages provide a non advised service. I.e. you select your mortgage and you do the application. For some people this can work, however the risks are, first that you don't select the best mortgage for your circumstances (taing into account set up fees, free or not free valuation and legal services, repayment charges etc, secondly that you could spend time and money applying to a lender who rejects your application, third that a good advised broker will know how best to present your application to the lender. Also as a non advised sale you have no protection from the Financial Ombudsman if anything does go wrong.

dunstonh

sorry, didnt spot "bank mortgage adviser" and thought you meant a real mortgage adviser and not a tied agent. Staff at banks are more expensive than brokers and the bank carries the liaiblity if they use their own staff. A mortgage broker carries the liaiblity if they arrange it which is why the bank likes paying brokers.

However, the rest of my post still applies if you wish to see a real mortgage adviser.

danjberry

i cannot see a bank giving you some of the commision they would normally pay a broker as they have to pay their staff instead of a broker, dont forget they lenders advisors are paid a basic salary even if there is no business, as well as bonuses depending on the amount of business the bring in. a number of lenders only accept broker business for this reason.

if you want the money form commision and do not need any advice as you believe you have picked the best product then go through money back

MortgageMamma

Personally I think you could lose more using moneybackmortgages than if you took fully indemnified advice from a qualified broker. What you gain in commission rebate from moneybackmortgages an advised sale could probably save you in the long run anyway, due to exclusives available to brokers that MBM may not be able to offer, and the fact that a broker will be able to calculate the true cost, and the average client just looks at the headline rate and the monthly payments.

6am

I am back from the meeting with the adviser. He was unable to match 400 discount. The thing is I decided to get this mortgage but after the meeting I am psychologically unable to refuse the man and go with moneybackmortgages. I hate myself for this weekness. :mad:

simonbh7

MortgageMamma wrote:

Personally I think you could lose more using moneybackmortgages than if you took fully indemnified advice from a qualified broker. What you gain in commission rebate from moneybackmortgages an advised sale could probably save you in the long run anyway, due to exclusives available to brokers that MBM may not be able to offer, and the fact that a broker will be able to calculate the true cost, and the average client just looks at the headline rate and the monthly payments.

Moneybackmortgages ARE brokers and therefore I would imagine that they can offer the same "exclusives" as any other broker.

They are ideal for someone like me who is quite capable of researching their own mortgage and does not wish to use a broker.

Let's be honest, the mortgage market is nowhere near as complicated as you brokers tell us it is. It's a question of common sense and checking all the relevent details, such as "no extended tie ins"etc. It's hardly rocket science is it.

I remortgage my properties every 2 years and am quite capable of "calculating the true cost" as you say.

simonbh7

6am wrote:

I am back from the meeting with the adviser. He was unable to match 400 discount. The thing is I decided to get this mortgage but after the meeting I am psychologically unable to refuse the man and go with moneybackmortgages. I hate myself for this weekness. :mad:

If you chose the mortgage why give away £400 to someone you don't know?

toonfish

simonbh7 wrote:

Moneybackmortgages ARE brokers and therefore I would imagine that they can offer the same "exclusives" as any other broker.

They are ideal for someone like me who is quite capable of researching their own mortgage and does not wish to use a broker.

Let's be honest, the mortgage market is nowhere near as complicated as you brokers tell us it is. It's a question of common sense and checking all the relevent details, such as "no extended tie ins"etc. It's hardly rocket science is it.

I remortgage my properties every 2 years and am quite capable of "calculating the true cost" as you say.

they are brokers, but their "best buys" are beatable in the main.

simonbh7

toonfish wrote:

they are brokers, but their "best buys" are beatable in the main.

In your opinion