recommend a fees free independent Mortgage glasgow

scotguy70

So would it best to see A few true whole of market mortgage adviser's, I'm not against paying - think I’ve misunderstood some of the advice given on here about finding a good mortgage broker.

But still if anyone knows someone in Glasgow they've used please drop me a line

And thanks guys for your replies.


Only looking for 60-80k depending on area

toonfish

your best bet is to speak to 2 or 3 and ask them for an initial idea - deal with the one you feel comfortable with.

JoeK_3

toonfish wrote: »

I've managed to survive for 9 years so far. As I said, this falls into the category of £25,000 remortgages, further advances and the like, we do it as a service, clients come back and refer their friends also

Good to hear.

toonfish wrote: »

You actually said "A true whole of market mortgage adviser works for the client and NOT for the lender and this way the client pays the adviser and the client gets the lowest rates and the cheapest mortgage product."

By implication a "whole of market" adviser is fee charging which is not often the case.

There was no implication here but a clear statement.

toonfish wrote: »

Rubbish - if they are both following the rules they would be recommending the same or very similar products every time

What rules? I assume that you are referring to FSA guidelines.

Let me ask you the following:-

1) Out of all the mortgages and remortgages arranged last year, how many have you arranged with procuration fee paying lenders and non procuration fee paying lenders?

2) Out of all the mortgages and remortgages arranged last year, how many non paying procuration fee lenders had the best products.

To toonfish, please read the following:

A recent article by Helen Loveless of the UK Financial Mail has identified that fee free UK mortgages are in fact costing borrowers more, as they will end up paying more in the end through paying higher interest rates.

An analysis conducted recently in the UK prompted the article, as it identified that fee-free UK mortgage offers are more expensive than deals with an application fee for consumers with a mortgage of £57,000 or more. This is because the interest rate is usually higher. With the average new mortgage loan now at just below £140,000, opting for a fee-free mortgage deal could cost many borrowers dear.

Fee-free UK Mortgages Comparison

Example 1a:
Based on a mortgage of £56,000 and someone taking out a two year fixed rate of 4.47%, they would end up paying £5,005 in interest in the first two years. Add the lenders fees of £1,499 and the overall cost is £6,505

Example 1b:
Again, based on a mortgage of £56,000 and someone taking out a two year fixed rate of 5.35% but fee free, they would end up paying £5,992 in interest in the first two years.

Using the same situation as above but based on the average new UK mortgage of £138,000, the figures work out as follows:

Example 2a:
A borrower taking out a two-year fix at 4.47% and paying fees would pay £13,838 over the two years.

Example 2b:
The same borrower taking out a 5.35% two-year fix and not paying fees, would cost £14,766.

It all goes to show that the bigger the mortgage, the more money you will save by choosing the low-interest option mortgage with a fee, rather than a fee-free UK mortgage deal.

Muliply the above figure over a 25 year mortgage term.

Which lenders tend to have the lowest rates? Non procuration fee paying ones

JoeK

toonfish

Joe - I arranged 3 "non proc fee paying" mortgages last year that I can recall - 2 with Britannia and 1 with HSBC - (existing client). On 3 occasions they were best for the client, or I would not have used them.

Your comparisons are a joke, as they relate to fee free mortgages, not free advice. If you want to slate me, or my advice at least get your ammunition right.

And which lenders "tend" to have the lowest rates - that changes regularly but often they are not the non proc fee paying ones, particularly on fixed rates.

JoeK_3

toonfish wrote: »

Joe - I arranged 3 "non proc fee paying" mortgages last year that I can recall - 2 with Britannia and 1 with HSBC - (existing client). On 3 occasions they were best for the client, or I would not have used them.

Your comparisons are a joke, as they relate to fee free mortgages, not free advice. If you want to slate me, or my advice at least get your ammunition right.

And which lenders "tend" to have the lowest rates - that changes regularly but often they are not the non proc fee paying ones, particularly on fixed rates.

I am not slating anyone, especially a colleague but I am trying to make a point. You could not have make a living last year if the figures that you mentioned were the other way round.

You are unfortunately missing the point, smaller mortgages are fee sensitive, hence my question about the size of the mortgage he is looking for.

The average UK mortgage is now well over the £57,000 figure mentioned and hence the need to find the lowest mortgage rates continuosly.

JoeK

JoeK_3

scotguy70 wrote: »

So would it best to see A few true whole of market mortgage adviser's, I'm not against paying - think I’ve misunderstood some of the advice given on here about finding a good mortgage broker.

But still if anyone knows someone in Glasgow they've used please drop me a line

And thanks guys for your replies.


Only looking for 60-80k depending on area

Sorry about this but as you can see we are both passionate about our beliefs.

Hope that this has not mixed you up to much.

JoeK

scotguy70

A good debate @ 1.30am

good to hear different views.

Mr_helpful

Scotguy70
Forget the whole of market thing. Thanks to the FSA it actually means very little Go for independent as they have to be whole of market by default.
There is a subtle difference which is the whole of market guys dont have to offer the pure fees only option which the independent does. This means the independent works on your behalf as it doesnt matter whether they get paid by the lender because if they did they would have to refund the proc fee anyway. However the whole of market broker does no have to do this and can keep the fee so is just as likely as the non fee charger to go with the highest proc fee as this gives him the greates wage.
Joe K
I have been in financial services since 1991 and never charged a fee ( though i do offer the opportunity and yes like toonfish I have used lenders like Britania and frequently C & G in the days when they didnt pay brokers and believe me its the best thing for referals. If the client sees you are doing the right thing without being paid they soon send their friends. Plus theres always the insurance to earn from.

MortgageMamma

I'm sick of this to fee or not to fee debate. Neither one is superior to the other. |We all have our own business models and ways of working. some clients prefer to pay fee's (very few) and some don't, or can't afford to. Come on, lets be big boys and admit that there is room for all business models and charging structures, and there is no right or wrong with any of them.

The key is giving the best advice to the client at all times. Any good non fee charging whole of market broker will subscribe to moneyfacts and include on their files research for lenders such as HSBC, egg, ING, First Direct, Yorkshire Bank and Brittania. If they do not research those product providers then they should at least give the client notification that they do not, as thats good practice.