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

MortgageMamma

mikael wrote:

Well I would not listen to you,

There's always a minority

as you are just as bad!

For doing what exactly? advising my clients on a fee's free basis of what is available to them, the best way to do it and how much it will cost?

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.

Yes you are correct, I'm not ashamed to admit I work because most of the british population don't understand mortgages, and don't like to spend hundreds of thousands on a whim.

There are so many people in our society who are just feeding off everyone else.

Eat or be eaten chuck. Its the way of the world. You have to have an instinct to suceed and prosper. No point wondering why other people get the lions share with an outlook like that?

What there should be is a clear figure on every mortgage as to how much it will cost over a certain term.

There is. I will refer you to the key facts document which is clear, concise and easy to understand. it is mandatory for anyone advising or selling you a residential mortgage to provide you with one of these. They were designed by our regulator, the FSA to enable unqualified individuals to make a like for like comparison on mortgage products. If you do not understand the information in one of these you really are beyond self-help, and need professional guidance.

Companies offering products should be obliged to provide full clear information in plain english

They are, and they do, but if you do not understand it, thats your problem - at that point you either use a broker or take your chances.

without customers having to get someone like you to advise them further.

Scum of the earth us advisers. right sharks arn't we, I mean, offering you advice for free and making sure you don't mess up your finances. We should have all be drowned at birth....[/quote]

So what is it exactly you have against a full qualified professional making a good living? Do you want accountancy and legal representation for free also?

Wig

toonfish wrote:

this is freely available to you from every lender so I really don't understand the problem.

.

The problem is simple and if you had read the thread and understood, it should be be clear enough by now.

The lenders should be forced to provide a mortgage which fits into a legal template so that different lenders offers can be much more easily compared.

simple really isn't it.

PosterBoy77

toonfish wrote:

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.

I have used a broker once and since then I have always dealt directly with mortgage lenders. I understand exactly what I want from mortgages and have no problem finding issues in the small print. However, I know of other people who still do not understand all the terms related to a mortgage and just accept advice at face value.

Charges may not be hidden, but they can be obscurred. Take for instance redemption penalities that are in place for longer than the initial attractive rate of a mortgage. Many people miss that.

PosterBoy77

MortgageMamma wrote:

mikael wrote:

Well I would not listen to you,

There's always a minority

as you are just as bad!

For doing what exactly? advising my clients on a fee's free basis of what is available to them, the best way to do it and how much it will cost?

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.

Yes you are correct, I'm not ashamed to admit I work because most of the british population don't understand mortgages, and don't like to spend hundreds of thousands on a whim.

There are so many people in our society who are just feeding off everyone else.

Eat or be eaten chuck. Its the way of the world. You have to have an instinct to suceed and prosper. No point wondering why other people get the lions share with an outlook like that?

What there should be is a clear figure on every mortgage as to how much it will cost over a certain term.

There is. I will refer you to the key facts document which is clear, concise and easy to understand. it is mandatory for anyone advising or selling you a residential mortgage to provide you with one of these. They were designed by our regulator, the FSA to enable unqualified individuals to make a like for like comparison on mortgage products. If you do not understand the information in one of these you really are beyond self-help, and need professional guidance.

Companies offering products should be obliged to provide full clear information in plain english

They are, and they do, but if you do not understand it, thats your problem - at that point you either use a broker or take your chances.

without customers having to get someone like you to advise them further.

Scum of the earth us advisers. right sharks arn't we, I mean, offering you advice for free and making sure you don't mess up your finances. We should have all be drowned at birth....[/quote]

So what is it exactly you have against a full qualified professional making a good living? Do you want accountancy and legal representation for free also?

You may well not charge someone a fee, but you are not providing advice for free. You will no doubt get commission from the lender you find a customer for. This money will probably come from a portion of the arrangement fee or other money the lender will collect in due course. This is just another example of a hidden charge, no doubt averaged across the board so it is the same whether you use a broker or not.

I have no problem with advisors, but I have a problem with those who blame people for being stupid because they have not come to one for advice. If people need an advisor at all times there is something wrong with how the products are being sold.

I don't expect solicitors or accountants to work for free. However I have a problem with our government making the tax laws so complex that many people who are just working for themselves, have a few investments or running a small business need to use their services.

Ignorance is no excuse in the eyes of the law. If the average person is supposed to know the laws, they should be simple enough to understand. A survey of MPs was once carried out, and most of them were not able to complete the tax returns properly - and they are the ones responsible for making the laws in this country.

toonfish

Wig wrote:

The problem is simple and if you had read the thread and understood, it should be be clear enough by now.

The lenders should be forced to provide a mortgage which fits into a legal template so that different lenders offers can be much more easily compared.

simple really isn't it.

a legal template like a KFI - what a great idea. I'm surprised no-one has thought of it already.

toonfish

mikael wrote:

I have used a broker once and since then I have always dealt directly with mortgage lenders. I understand exactly what I want from mortgages and have no problem finding issues in the small print. However, I know of other people who still do not understand all the terms related to a mortgage and just accept advice at face value.

Charges may not be hidden, but they can be obscurred. Take for instance redemption penalities that are in place for longer than the initial attractive rate of a mortgage. Many people miss that.

the only way they can miss it is if they don't read the KFI - whose fault is that?

danjberry

mikael wrote:

MortgageMamma wrote:

You may well not charge someone a fee, but you are not providing advice for free. You will no doubt get commission from the lender you find a customer for. This money will probably come from a portion of the arrangement fee or other money the lender will collect in due course..

but as has been said, a lender is saving money by paying out this commision rather then having all cases coming direct so i dont really understand how you can moan about this fee coming out of the arrangement fee or any other fee when it is in fact kepping rates lower due to the money being saved

toonfish

mikael wrote:

I don't expect solicitors or accountants to work for free.

may I ask why not?

danjberry

mikael wrote:

Charges may not be hidden, but they can be obscurred. Take for instance redemption penalities that are in place for longer than the initial attractive rate of a mortgage. Many people miss that.

maybe they should of got a mortgage broker who would of explained this to them

PosterBoy77

danjberry wrote:

mikael wrote:

but as has been said, a lender is saving money by paying out this commision rather then having all cases coming direct so i dont really understand how you can moan about this fee coming out of the arrangement fee or any other fee when it is in fact kepping rates lower due to the money being saved

Well if the products were simple enough for more people to fully understand without advisors or lenders employing their own staff to explain them, it would be cheaper overall for the customers. However the current direction of the market is leading to more and more catches which are designed to catch people out. The lenders all have to compete, so once one does they all have to.