Annoyed at mortgage arrangement fees, is it a rip off?

danjberry

Wig wrote:

Handy,

Why spend an hour with 200 brokers when what I am calling for is forced compliance for lenders to lay out their rates in a formal clear and concise way so that they can be compared easily on a page in a magazine? So that the consumer can choose the type of mortgage he wants, then look at all the rates and choose the cheapest? Time taken 20 minutes.

Brokers can do what they want, I don't care what they do or don't do, die or survive it makes no difference to me.

sorry ive been packing somissed all the laughs but why would you go to 200 brokers, all you need is 1 whole of market broker?

Bernard_Coleslaw

regularsaver1 wrote:

!!!!!!

I am curious what is in your brain and what your job is

nah, not really
did you used to be called Kenshaz??

Nooooo! Don't mention his name, he might show up on here!

Seriously (and getting back on-topic), I'm glad there is as much choice as possible in the mortgage market.

I'm old enough to remember the days when there was one mortgage rate (which was suspiciously similar between all mortgage lenders), take it or leave it. No discounts, no fixes, no cashbacks, no daily interest. Very easy for people to understand. But was it good for consumers? I don't think so.

Choice is good. Think about it. If there was just one type of car on sale, one brand of bread in the shops, one sort of house we all had to live in, would we honestly be able to say we were better off?

Whilst I have sympathies with those less numerate than me, I am annoyed with the suggestion that we should strip the mortgage market of product variation to cater for them. This would be a retrograde step, in my opinion. If product fees are needed to ensure we have a wide choice, then that's a necessary part of product pricing.

Rather than regulating product price, what we should be seeking to do is to:

• Improve financial literacy amongst consumers; and
• Ensure that product information is as clear as possible.

Both of the above are things for which the FSA are responsible. The moment they get into regulating product pricing itself, we're on a slippery slope.

Wig

danjberry wrote:

sorry ive been packing somissed all the laughs but why would you go to 200 brokers, all you need is 1 whole of market broker?

Dunno, ask Sheila, it was her reference.

luckyfool

Mr_helpful wrote:

just to put a further spanner in the works If the broker chages you a fee by percentage the effect of his fee may be such that you no longer get a better deal than going direct to the high st. As a broker I would suggest a non fee charging independent broker is the best for the clients but then im biased.

I don't want to split hairs here, but technically a broker cannot call themselves non-fee charging & Independent in the same breath as they are contradictions. To be able to call yourself Independent the FSA require you to offer clients the option to pay a fee and receive all commission or procuration fees rebated back against the fee.

Now you could be independent and offer clients a no fee option, but you can't not offer them a fee option.

PosterBoy77

MortgageMamma wrote:

You know, it makes me laugh all this "i despise fee's" business

Money is what makes the world go round. People expect everything for nothing these days. I know the charging structure on mortgages can be complicated, but thats what mortgage brokers are for. If people continue to go to banks and building societies direct for their mortgages, then I have no sympathy if they are charged a large uncompetitive fee.

Well I would not listen to you, as you are just as bad! It is in your interest that lenders introduce ever more complex rules and hidden charges so the average person feels they need to come to people like you for advice. There are so many people in our society who are just feeding off everyone else. What there should be is a clear figure on every mortgage as to how much it will cost over a certain term. Companies offering products should be obliged to provide full clear information in plain english without customers having to get someone like you to advise them further.

danjberry

mikael wrote:

Well I would not listen to you, as you are just as bad! It is in your interest that lenders introduce ever more complex rules and hidden charges so the average person feels they need to come to people like you for advice. There are so many people in our society who are just feeding off everyone else. What there should be is a clear figure on every mortgage as to how much it will cost over a certain term. Companies offering products should be obliged to provide full clear information in plain english without customers having to get someone like you to advise them further.

i dont think you have been listening, there is a clear figure on every mortgage KFI

toonfish

danjberry wrote:

i dont think you have been listening, there is a clear figure on every mortgage KFI

not clear enough -evidently. Folk can make their own choices, with clear information provided from their chosen lender, or enlist the help of a broker at no cost to them and they are still not happy!

It really makes me laugh sometimes at what people expect in terms of "everything for nothing".

dunstonh

I believe we have a Daily Mail reader here. It's in the Mail so it must be true. The world according to Daily Mail readers is not the same as the real world.

My car is too complicated. I dont understand the engine. So i took it out, removed the floor and now drive it like Fred Flinstone. It's so much better as I dont have that engine complication now.

toonfish

mikael wrote:

Well I would not listen to you, as you are just as bad! It is in your interest that lenders introduce ever more complex rules and hidden charges so the average person feels they need to come to people like you for advice. There are so many people in our society who are just feeding off everyone else. What there should be is a clear figure on every mortgage as to how much it will cost over a certain term. Companies offering products should be obliged to provide full clear information in plain english without customers having to get someone like you to advise them further.

why would you be so opposed to using the services of a broker?

Just interested to know if it's as a result of a bad experience in the past. If you want the "full and clear information" this is freely available to you from every lender so I really don't understand the problem.

No charges or costs are ever hidden, and every mortgage details the full cost over the term in plain English.

plane_boy2000

I find this site usefull and interesting in helping me get the best possible deal for any product I might buy, but I cant help feeling a little embarased by the overiding need from some people to get something for nothing.

People need to understand that healthy competition keeps prices keen for consumers, and if lenders stop making money out of mortgages than there will be less competition and higher costs for us.

I have no issue with teh lender charging a fee. They have a cost involved in setting up the product, and as already stated the interest rates are so low in some cases that the reality of the lender making any money is slim after they have employed all the staff to administer your product. Lets not also forget that most of those lenders are also providing free banking to many of us!