IFA in Bournemouth/Dorset

JimmySavile

Hi,

Just wondering if anyone can recommend a good independent financial advisor in the Bournemouth area, preferably one that works on commission from the lender as opposed to fee based?

Is there any downside to going commission only as opposed to paying them a fee?

Thanks

kingstreet

If you choose independent mortgage advice, you will be offered all mortgage products, including those offered directly by banks and building societies which pay no commission to an intermediary.

In this way, you know you have absolutely every possible product to go at.

If you choose a whole market broker, you will only be offered those products which pay a commission to a middleman. Some whole market brokers charge you a fee on top of the commission.

Going back to the independent broker, if the best deal for you is one which pays commission, the broker will rebate that commission back to you to reduce, or perhaps even nullify your fee altogether.

What mortgage amount will you need to borrow?

JimmySavile

Hi,

Thanks for the reply, that makes sense.

We are looking at houses with a max of about £215k, £30-£35k deposit

kingstreet

Ok. A mortgage of £180k with a normal high street lender pays an intermediary around £630.

You can make a deal with a whole market broker. He'll get that commission and that's the end of the matter. As I said, some charge fees over and above that, so you'll have to decide if that would be good value for money.

If you make a fee pay deal with an independent, you may find the commission is more than the fee. If he charges you, say, £500 you might get back £130 rebated to you if he uses a commission paying product.

Alternatively, you might pay the £500 and he finds you a deal only available direct with no commission paid. This may save you more than £500 in payments, but you also might have been able to save yourself the fee if you could have found that deal yourself.

When I meet a new client, I sit and go through the options with them to establish if they're better off employing me on a whole market or independent basis. Ultimately, I earn about the same amount either way, so all I want to do is get them the best possible deal. I want them to be clients for years, not just for one transaction. I also want them to recommend me to friends and relatives and the only way I'll achieve that is by offering first class service at a reasonable cost. My overheads and profit margins are worked to achieve that too.

I'm sure there will be firms in your area who work on a similar basis and friends and relatives should know of good brokers you can talk to...

JimmySavile

Thanks very much for the detailed response, that's exactly what I needed to know and really useful