What do you expect from a mortgage broker?

AndyWallace

Another misleading example is when the broker states he has access to the whole of the UK mortgage market, which of course isn't true.

Advising on mortgages isn't just about rates.

payless

In answer to your question though ...

Different people want different things - there is nothing stopping you offering a bespoke service to different clients.

Its not always about rate , broker knowledge can be a great thing, differing criteria, especially on B2L or let2buys , and knowing which lenders will process things quickly ( and a lot of this won't be listed on the sourcing systems)

payless

AndyWallace wrote: »

Another misleading example is when the broker states he has access to the whole of the UK mortgage market, which of course isn't true.

Advising on mortgages isn't just about rates.

posts crossed, but think its a similiar view .

payless

Oh, and I must admit I'm still not sure if this type of thread is good for MSE- it may be aimed at consumers but its f/s people chatting

MortgageMamma

Yes I agree with your opinion PaylessIts an absolutely huge market, and because the deal direct mortgages from both commission paying and non commission paying lenders are not on sourcing systems it is almost impossible to say you have not missed something. I mean, how long would it take to go to every single lenders website and check out the direct/account holder mortgages and then draw up a comparison? Where do you draw the line when fee's free?Until I set up my own company I was pretty much forbidden by my old director to send clients direct (I did with a few anyway). As a company owner, I now have the luxury of doing so - but I am unsure if I am prepared to work 10 hours on a case doing all this research just to let the client walk away to a direct lender and me be out of pocket. I feel like I am boxed into a corner with this one.Charge a fee (which I don't want to do in my heart)orLook at the true whole of market and probably end up bankruptI know i probably sound like a spoilt brat but don't you think we should be demanding a bit more from our sourcing companies and lenders? I am sure there are a lot of other brokers who do not want to make this decision - do you think there is anything we can do to try and change the current situation other than move to fee based models?

grade15

Hello mortgageMamma,
I've got a question for you.. I've searched high and won the internet for great mortgage deals but could a mortgage adviser get me an even better rate than those I found myself on the internet?

payless

If you think "true WoM" is a USP for you biz, then great .. wonder your compliance department would take it.

As you point out, even if fee based can you be sure that you have not missed out on the best deal that might be there from the Wheel Tappers BS for one legged bisexual 37 yr old supporters of the local Rugby club - available only on a wet Wednesday afternoon.

If you charge a fee and say you offer something, then surely you are obliged to do itr fully , so will likely come and bite you on the bum.

payless

grade15 wrote: »

Hello mortgageMamma,
I've got a question for you.. I've searched high and won the internet for great mortgage deals but could a mortgage adviser get me an even better rate than those I found myself on the internet?

I'll answer it as well if I may...

possibly, as a number of lenders will have products for certain distirubtion channels that won't always show up on internet.
( for example 11 of my last 15 cases were processed on "broker exclusives" some of which even had restricted broker access.)

If you are sure you have found what you want, certain brokers might transact it and cut you in on commission (if available) , hence beating going direct

But as mentioned its not always about rate .

grade15

so generally yes then.. thanks for the heads up!..:dance: I compiled a excel sheet with all the rates and fees and total payment at the end of the deal and see which is the cheapest.!

jamesd

MortgageMamma, step one is to decide whether you want to be truthful in your advertising and claim to be searching the whole of the market or finding the best deal or instead be searching the panel of the lenders you have and finding the best deal from among them. You can truthfully advertise either of those... but can't truthfully say (and document) that you'll find the best deal while only using your panel.

If you have to go to the direct lenders to research them it sounds as though your service provider may not be including the direct deals in its automated tools, presenting you with a deceptive picture of the market that you might then inadvertently relay to your customers.

You also have the "tease" option of telling your customers that a better deal may be available direct, having established that, but details aren't provided via your commission-only service. Customers may dislike this but it keeps you honest and that has good sleep merits.

"the whole of the market" in this post means the lay consumer meaning of "whole", not the inherently misleading FSA "whole of market" description.