Independent, Whole of Market or Panel

JoeK_3

Which is the best route to take for the UK mortgage broker, Independent, Whole of Market or a Panel of Lenders.

Does it matter, as we may only use a handfull of lenders per year, anyway.

Let's hear your views.

JoeK

MortgageMamma

The route I took was a network with 60 lenders on panel, but the abilityto go off panel as I see fit without permission

I dont really see how being independent makes a big difference as I've never had a client yet want to pay an upfront fee and have commission rebated

JoeK_3

Is the independent route not the way to go?

Charge the client a fee based on the assumed hours worked and offer to rebate the commission/procuration fees received!

This way there is no prejudice shown towards fees/commissions received!!!

JoeK

homer_j_3

and you would by not charging?

dunstonh

Obviously, independent means something different to mortgages as it does with IFA classification.

I would go independent (I have for my company even though I dont personally do mortgages). The independent tag is important in my eyes as I promote my company as being independent and not independent for this but tied for those and or panel for that. I dont see at as honest if you mix and match your status within the advice classifications.

JoeK_3

homer_j wrote: »

and you would by not charging?

It would be nice to assume that all mortgage advisers have your attitude to fees but realistically, how many can hold their hand up and say that fees do not come into it when selecting a mortgage product.

I know that the FSA wish that all mortgage advisers would take the independent route for transparency but not many advisers have.

Joek

homer_j_3

i hold my hand up very high - in fact both of them. I think that the brokers that do work that way have no place in the industry.

when you charge a fee - you offer no more to the client than not charging and it annoys me that people try and dress it up as they do.

JoeK_3

UTOPIA

Joek

MortgageMamma

JoeK wrote: »

It would be nice to assume that all mortgage advisers have your attitude to fees but realistically, how many can hold their hand up and say that fees do not come into it when selecting a mortgage product.

I know that the FSA wish that all mortgage advisers would take the independent route for transparency but not many advisers have.

Joek

I recommend whats best for my clients, not whats best for me. That way you get referrals and they just keep coming back. I even send clients direct on occassions. I agree with homer, any broker that thinks of his pocket before the clients should be working elsewhere.

homer_j_3

maybe you think I am in a world of my own by thinking that but I believe that its not fair for a client to pay for advice - simple as.

I dont buy your argument that fee charging eradicates commission bias nor do I believe that it provides a better level of service.

JoeK_3

The day that I decided to become 'Independent' my then branch Manager called me into his office to tell me that Independence was not all it appeared to be, as I would only be using around 12 companies anyway.

Is this true for the mortgage broker?

JoeK