IFA Fees

MortgageMamma

Madjock wrote: »

You know MortgageMamma, you sound just like one of my company's mortgage advisors.

I could be?;)

barndoor_2

OK, thanks, but i'm not saved yet,
am looking at alternatives, maybe local,
i will get back to this post,

thanks

AndyWallace

MortgageMamma wrote: »

Next week! good god (sorry I know it seems I'm going OTT but I'd lose business if I worked at that pace!)

This comes down to business model again. It's rare that an adviser, when in a face to face meeting at the clients home, can say with certainty that they should have X product.

The adviser at this point will make a second appointment to fit in with his diary and other appointments. He will usually do further research and obtain an Agreement in Principle prior to going on the second visit.

The second sitting will be a presentation and full explanation of why that product has been selected and the competent adviser will answer any questions in a personal and relaxed manner.

The benefits to this business model are certainty of knowing that the client fully understands the process and a personal service.

A fee will usually be charged to cover:

1. Cost of Lead (Advertising Etc)
2. Appointment Preparation (1)
3. Appointment Time
4. Research, AIP & Preparation of:-
5. Appointment (2)
6. Administration of mortgage
7. Expenses, Overheads, Wages
8. Regulatory Fees Etc.
9. Non Selling Appointments

A mortgage brokerage, with staff and premises cannot realistically operate on a fees free basis without pushing or relying on insurance sales.

I'd like to add that there is not necessarily any less of a service when using a 'home based' mortgage adviser whose overheads and staffing costs are non existent. Perhaps more impersonal and a little more paperwork for the client but nothing major.

Andy.

Mr_helpful

AndyWallace wrote: »

The adviser at this point will make a second appointment to fit in with his diary and other appointments. He will usually do further research and obtain an Agreement in Principle prior to going on the second visit.

.

Andy
Could you tell that to our local estate agents who can sell a house and sign up a mortgage in 1 hour flat. 1hour 15 with insurance LOL

Barndoor
Remember if you add any fee to the loan you will be paying interest on it for the term of the mortgage. Unless you are a really complicated case it should be easy to go fees free.

MortgageMamma

AndyWallace wrote: »

This comes down to business model again. It's rare that an adviser, when in a face to face meeting at the clients home, can say with certainty that they should have X product.

The adviser at this point will make a second appointment to fit in with his diary and other appointments. He will usually do further research and obtain an Agreement in Principle prior to going on the second visit.

The second sitting will be a presentation and full explanation of why that product has been selected and the competent adviser will answer any questions in a personal and relaxed manner.

The benefits to this business model are certainty of knowing that the client fully understands the process and a personal service.

A fee will usually be charged to cover:

1. Cost of Lead (Advertising Etc)
2. Appointment Preparation (1)
3. Appointment Time
4. Research, AIP & Preparation of:-
5. Appointment (2)
6. Administration of mortgage
7. Expenses, Overheads, Wages
8. Regulatory Fees Etc.
9. Non Selling Appointments

A mortgage brokerage, with staff and premises cannot realistically operate on a fees free basis without pushing or relying on insurance sales.

I'd like to add that there is not necessarily any less of a service when using a 'home based' mortgage adviser whose overheads and staffing costs are non existent. Perhaps more impersonal and a little more paperwork for the client but nothing major.

Andy.

If you are charging a £1295 fee and keeping a proc how can you justify it taking a week to recommend a mortgage? I'm sorry but if I was paying someone a fee like that I'd expect something a bit quicker

Also, if it takes a further week to present there is a risk your chosen product could be withdrawn in the meantime, unless of course, the research is left until the day before the meeting

AndyWallace

Mr_helpful wrote: »

Andy
Could you tell that to our local estate agents who can sell a house and sign up a mortgage in 1 hour flat. 1hour 15 with insurance LOL.

One near to us signed up 22 mortgages or so the other week.

LOL. Just reminded myself of the Peter Kay humour on losing weight "Lost 8 stone in a day!! 8 Stone in a day!!"

I digress but your point is valid.

Andy.

MortgageMamma

I've just set up an agreement with a local EA that sells prestige properties, hopefully I'll be seeing some good leads from there before long, there's not many brokers who live near me who do fee's free so hopefully it will work out

AndyWallace

MortgageMamma wrote: »

If you are charging a £1295 fee and keeping a proc how can you justify it taking a week to recommend a mortgage? I'm sorry but if I was paying someone a fee like that I'd expect something a bit quicker

Also, if it takes a further week to present there is a risk your chosen product could be withdrawn in the meantime, unless of course, the research is left until the day before the meeting

You're out of touch with reality Lisa. The industry is not as 'CRITICAL' as you'd like people to think. Nor too is the need for many many people to ever use a broker.

There are rate changes going through due to the recent inflation figures. A competent adviser would always ensure pipeline work is 'managed'.

Andy.

MortgageMamma

AndyWallace wrote: »

You're out of touch with reality Lisa. The industry is not as 'CRITICAL' as you'd like people to think. Nor too is the need for many many people to ever use a broker.

There are rate changes going through due to the recent inflation figures. A competent adviser would always ensure pipeline work is 'managed'.

Andy.

Whatever Andy I really cannot be bothered to argue a difference of opinion with you. But I don't see any of my happy clients complaining that they get a swift accurate and efficient service. I don't waste time and money seeing people face to face unless they are coming to me/on my doorstep - I'd much rather stay phone based, keep the overheads down, and give the client true value for money. Telling a fellow adviser they are out of touch with reality is a little bit nasty though Andy, so at the risk of sounding completely unprofessional, kiss my @-rse.

Mr_helpful

I think in the main fees are totally unnecessary

"A fee will usually be charged to cover:

1. Cost of Lead (Advertising Etc)
2. Appointment Preparation (1)
3. Appointment Time
4. Research, AIP & Preparation of:-
5. Appointment (2)
6. Administration of mortgage
7. Expenses, Overheads, Wages
8. Regulatory Fees Etc.
9. Non Selling Appointments"

1) I dont advertise apart from clever optimization on google which cost nothing. Most of my work is referals
2) A few minutes getting dressed and reading client file if we have one at this stage
3) difficult to quantify but offset by at least 2 cups of tea
4) Trigold is provided free. Rarely do an AIP as waste of time in many non adverse cases
5) Often have done mortgage in one hit as client is being nagged to get on with it by EA who can do whole lot in 1 hour
6) Not much time wasted here. get it right 1st time is the motto
7) We keep those to a minimum with slave labour
8) Good point havent worked out how to get out of these yet
9) Dont have many of these except to tell the client their special rate is coming to the end and we have to remortgage again.

All in all the proc fee covers this easily. The good news is that with happy clients they do the selling for me.