why would you use an IFA to get a mortgage?

ACG

We have compliance procedures - meaning we cant just flog any old product it has to be the best product we can find to match your requirements.

As for the broker coming back with 1 deal...thats his/her job. Theyre not there to find you a number of deals for you to then make a choice, they have narrowed it down to the one that best suits your needs. Theyre making a recommendation. You dont have to accept that deal, you might find a better deal elsewhere yourself.

Everything we do, you can do. Just like i can fit a carpet, tile, decorate, wash my car... there are times when you think its easier to have someone else do it. Not all advisors charge a fee, so why wouldnt you want someone doing the donkey work for what will cost you nothing potentially.

If you can find a better deal yourself and your happy to do the chasing then i would suggest you do it yourself, if not then its worth considering a broker.

deprivedofsleep

thanks folks. I think he is just lazy ponce and used to delegating stuff at work.

of course I wouldn't just go to moneysupermarket and expect to get the best deal on there. i don't mind going to the banks/ calling them up as our situation is not a straightforward. it is important to get the house, but it is just important to get the right deal for us and that we are exposed to all the available options to us with our limitations in mind.

Dave_Ham

See you back on thread when HSBC/First Direct decline your case...!

Said in jest, but appreciate the sentiment...

I think you are underestimating the task and you cannot just Google all of the various lenders/providers without some background.

That said, you have gumption given you came onto a site that was only ever going to be answered by brokers/IFA's and said you could pretty much do what we have studied/experienced and assessed to do for years.

Sure you will get yourself a fair deal - genuinely wish you good luck...

Annisele

Finance is (IMO) just like plumbing. If you know what you're doing, you DIY. If you don't know, and don't have the time/money/inclination to learn, you pay a professional.

However, you do tend to get quotes from more than one professional. So, OP, if you're not comfortable with the mortgage adviser you've found, try some more - there are lots around.

betmunch

I think you are looking forward to the challenge of it, which is no bad thing. I dont think anyone on here is crazy enough to suggest that EVERYONE needs a broker, although I think you dont need one for different reasons to most. I hope you do keep the thread updated and wish you the best of luck too.

leveller2911

Its probably the cynic in me but whats to stop any independant whole of market advisor only giving the customer details of the mortgages that they want the customer to see?..

So basically not showing the customer the best deal for them because the mortgage advisor makes less money from the product over another product where they would make more money.If I was a mortgage advisor whats to stop me from showing the customer a product that makes me £600 but not showing them the same deal that only makes me £300?....... I'm not a mortgage advisor but a Joiner, that said I might need one of you guys/girls soon so don't bite my head off i'm just curious and naturally cynical..:D;)

ACG

There isnt a huge amount of difference between what we earn from lender to lender, theyre generally on a level playing field.

For what the difference can be, its not worth us losing our license or getting a complaint upheld.
Because we have to recommend a mortgage deal, we have to write you a letter explaining why we decided on that mortgage, how it meets your needs and how its the best choice available.

Also, on my letters (im presuming other advisors have something similar) included in the letter is a list of the top 30 or so deals that were available based on the criteria i searched for...so you have that included to take away with you.

On a side note, i would want any clients of mine to recommend me to friends, family, randomers in the local...for the sake of the difference in commission (which is a lot less than £300 in my experience), its not worth it.

meer53

I've just remortgaged and i couldn't have done it without the help of my IFA. She was fantastic, a Transfer of Equity was involved and i only work part time so the finances were very tight. She came back with 2 recommendations for me to consider and my remortgage completed last week. It took all the hassle and stress out of it for me, she was recommended to me by a family member and i would definately use her again.
Horses for courses !

Dave_Ham

leveller2911 wrote: »

Its probably the cynic in me but whats to stop any independant whole of market advisor only giving the customer details of the mortgages that they want the customer to see?..

So basically not showing the customer the best deal for them because the mortgage advisor makes less money from the product over another product where they would make more money.If I was a mortgage advisor whats to stop me from showing the customer a product that makes me £600 but not showing them the same deal that only makes me £300?....... I'm not a mortgage advisor but a Joiner, that said I might need one of you guys/girls soon so don't bite my head off i'm just curious and naturally cynical..:D;)

This often gets levelled at brokers, to be honest back in the naughties and sub prime boom it did go on.. (not by all I hasten to add)

If you wanted a truly independent broker and the marketplace has not quite got there yet, nor have all of the public..

Then I would source the entire marketplace for the absolute best deal subject to your individual circumstances and you would pay an agreed fee (refundable upon success) typically say £495

If the best deal was with a commission paying lender, I would submit and then rebate the commission upon completion. If it was direct only, I would introduce and advise and ensure help with solicitors/estate agents etc. If this did not save more than the £495 over the term, would go back to the "whole of market" option and rebate the commission so you would still be better off..

Other than that, see what ACG said and under the traditional whole of market approach this would be managed and regulated...

dustyjack

Most of the cheapest deals seem to be direct in any event on looking in detail at this.

Broker may not be able to assist formally in dealing with the lender in such circumstances.

Shop around is always a good ploy . . .