Brokers' High APRs

Dave_Ham

Ok - so liked the personal response. Bolding certain words and phrases do not like so much, as it gives the impression that the person reading is simple and needs key phrases pointing out.

My post was to support that education, for someone who does not know much; you were quick to assume that both brokers had presented you with Halifax as a solution as they earned more from them.

Go back to my first post - 2nd on thread and you will note the specific, useful information provided.

Once you start to make assumptions about advice given being based upon commercial factors, you are asking for trouble.

My statement stands, do not waste your time (or hopefully anyone elses) looking for a better deal on this type of purchase.

matheo44

Dave_Ham wrote: »

you were quick to assume that both brokers had presented you with Halifax as a solution as they earned more from them.

It was a simple question to people who know better than me.

Dave_Ham wrote: »

My statement stands, do not waste your time (or hopefully anyone elses) looking for a better deal on this type of purchase.

Again, like many people on MSE, I like to compare deals. I don't think I've wasted many people's time by asking questions to two brokers (not 15) and posting 1 question here.

Brokers know that they will only get 1 deal out of X amount of requests. It is their job to be better/nicer/cheaper than their competitors and get more deals than them.

I will probably go for this deal, yes.


Big Thank You to everyone who have replied and kudos to kingstreet!

Thrugelmir

matheo44 wrote: »

Brokers know that they will only get 1 deal out of X amount of requests. It is their job to be better/nicer/cheaper than their competitors and get more deals than them.

What you need to consider is there are relatively few mortgage lenders of any significant size. Of those some do not use brokers to source new business. So depending on the circumstances of the borrower. The number of options isn't necessarily that huge. That's where a broker earns his fee. Finding the options.

To to be considered for any mortgage product there will underlying criteria as determined by the lender. This criteria can change in 24 hours. So comparing APR's alone does not provide the whole story.

JimmyTheWig

Dave_Ham wrote: »

Big shout to Kingstreet who called it.

Agreed.

Where is the apology to all those poor brokers you thought were money grabbing over £1.50 extra commission.

Fair point.

You would be a nightmare client, serious...

A bit harsh.

If I went to a mortgage advisor I would understand what they were saying and so know whether they were trying to take me for a ride or not. But if I went to a mechanic I wouldn't have a clue what they were saying and would either have to accept what they were saying or come somewhere like here to ask if what they were saying was reasonable.
I think this is all the OP is doing. The fact that that he missed out important bits of information demonstrates the lack of knowledge rather than some sort of attempt to pull the wool over anyone's eyes.

Jimbo1976

Matheo

I think you are being a bit harsh on Dave, let's not forget he responded to your initial email after about 7 minutes and his first post is spot on. Your circumstances are not straightforward.

As you are new to the world of mortgages you would not have known that shared equity mortgages aren't easy.

The people who answer posts on here do a great job helping people but it makes their lives easier if you give them sufficient information.

You don't go to the doctor and say "I've been prescribed this medicine, is it the right stuff for me", for a doctor to give an instant second opinion. You would need to give them history, symptons etc. You don't complain to your doctor that he can't guess what's wrong with you when you walk through the door.

Having a go at Dave for not immediately guessing that you were going for a shared ownership mortgage is unfair, it is just through Kingstreet asking exactly the right questions that you were able to get decent advice.

Dave_Ham

Happy to agree to disagree.

Not moaning about checking on here at all (that is one of the purposes) but the initial detail said spoke to a few mortgage brokers.

Personally I would expect a few to be more than 2.

That would frustrate me, given how we have to treat clients (and rightly so) in terms of fact find, regulation etc. to go to multiple brokers is not really the game.

When all came back with the same product (well all meaning 2) then to check again smacks of a frustrating/nightmare client for me.

If you went in 3 car garage's and each one said your brakes needed replacing, even with no formal regulation you would fancy that was the case.

Given brokers sell time, I am relatively high maintenance around time wasters

Nothing sinister against the OP, was just calling it as I saw it.

droiderm

Dave_Ham wrote: »

If you went in 3 car garage's and each one said your brakes needed replacing, even with no formal regulation you would fancy that was the case.

To use your analogy, I think he knows he needed new brakes.
That was never in question. However, both garages wanted to sell him these fancy Dan brakes which the OP knew the garages would get a kick back on. He also thinks the garages might get a kick back on selling you other brakes, but he just wasn't sure if the kick back on these fancy dan brakes (more expensive) was in a factor in them recommending them.

I guess what he didn't know, was these fancy dan brakes were the only ones that would fit his car, and therefore the rest is moot.

I personally think it's reasonable to question things when there is commision involved.

Dave_Ham

Hated the car analogy, but used because Jimmy did.

Another difference is given that garages are not regulated, they do not need to declare commission. Mortgage Brokers do.

I think it was always going to be an inflamatory assumption that a professionally qualifed broker, would formally advise Halifax based upon commission - which is what I took issue with.

It is however just my humble opinion.

Thrugelmir

droiderm wrote: »

To use your analogy, I think he knows he needed new brakes.
That was never in question. However, both garages wanted to sell him these fancy Dan brakes which the OP knew the garages would get a kick back on. He also thinks the garages might get a kick back on selling you other brakes, but he just wasn't sure if the kick back on these fancy dan brakes (more expensive) was in a factor in them recommending them.

I guess what he didn't know, was these fancy dan brakes were the only ones that would fit his car, and therefore the rest is moot.

I personally think it's reasonable to question things when there is commision involved.

A good business will look to try and develop a relationship with the customer so that they return in the future. A one off sale for a few hundred pounds commission does not make a sustainable business model in any line of work. Retaining customers is the key.

droiderm

I suspect at least one of the brokers involved was pushed by the builder. I know from past, previous experience that at least one of these companies are pretty hopeless.

That kind of takes out the retaining customers angle some what.