What do you expect from a mortgage broker?

MortgageMamma

Well I dont think there are any advisers who want to deliberately mislead their clients - I think payless's suggestion of a bespoke service tailored the that individual clients needs is the ONLY fair way to do thisBack to the network to see if they will permit me to amend the IDD and website to cover all options. Perhaps I will have some customer brochures/leaflets printed which illustrate the different levels of service availableAgain, I did mean this thread to be for feedback from consumers but I am grateful for the professional input too

MarkyMarkD

MortgageMamma wrote: »

Thanks again for your comments MMD, what basis do you work upon? I'd like to see the opinions of some none brokers on here too

I AM a non-broker, if that isn't clear, so I don't work upon any basis! My comments are from a consumer's perspective.

The type of products I was getting at was the current-account holder exclusives, referred to by Payless.

I think that there is a danger that consumers believe they are being advised on the full market - which means (in my opinion) all products whether commission-paying or not and whether available through intermediaries or not - but they are not, in most practical senses.

I am a wholehearted advocate of people using brokers as most people will not get such a good deal without doing so - because of the huge range of mortgages on the market, and because many people don't understand their own needs until a specialist discusses the options with them.

But in any situation where there are lenders doing better deals which brokers either cannot earn commission on, or cannot even sell, than those available on a commission-paying basis, things get very complex.

I find it interesting that MM is so against fee-charging. As a consumer, I'd far rather pay a fee for independent advice which is absolutely 100% not influenced by the level of commission, because that commission is being rebated to me. There are very few situations in life where people earn money based on an effectively hidden charge (and I know that it's not as hidden as it used to be, but I'd venture that it's still not going to feature in the comparison of products given by most brokers to their clients).

MortgageMamma

Well having read back on your posts MMD you are very knowledgeable for being a pure consumer I am impressed.

I am not wholey against fee charging, I have charged fee's on occassion and I do reserve the right to charge fee's for complex cases or where a lot of upfront cost will be incurred by me

I agree though that 100% fee based and commission refunds is probably a fair way of doing it, the problem is there are a lot of people who cannot afford to do it this way and that would put them off using a broker and send them hurtling towards to next bank

I don't think I have ever come across a broker who charges fee's UPFRONT and then rebates - consumers just wont play that game from my experience

kenshaz

No sales. No inhouse jargon. Just the basic facts.

It is essential that firms provide clients with clear, uncomplicated and comparable facts to help them understand the services and products being presented, shop around , make informed decisions.

Jennifer_Jane

Am happy to pay anyone a fee or commission who does the work for me - but I expect to have that fee paid for by getting a beneficial mortgage: win/win.

MortgageMamma

kenshaz wrote: »

No sales. No inhouse jargon. Just the basic facts.

It is essential that firms provide clients with clear, uncomplicated and comparable facts to help them understand the services and products being presented, shop around , make informed decisions.

Hardly a relevant contribution to the thread Kenshaz - its opinions I'm asking for - that seems to be a generic statement rather than an opinion. Your opinion as a consumer is most welcome, but do make sure its your opinion, not your crusade.

What level of service would you like to receive from your mortgage broker Kenshaz? and how do you think that broker is most fairly remunerated?

MarkyMarkD

MortgageMamma wrote: »

Well having read back on your posts MMD you are very knowledgeable for being a pure consumer I am impressed.

Compliments indeed - I enjoy reading your posts too, MM.

MortgageMamma wrote: »

I don't think I have ever come across a broker who charges fee's UPFRONT and then rebates - consumers just wont play that game from my experience

I didn't really mean upfront - just an agreement to offset.

As a consumer I'd be happy with the broker getting (say) £500 as long as I knew that would only come from me if I was getting such a stonking deal that it was worthwhile to pay the £500 out of my own pocket. And as a "quid pro quo" I'd want the extra £500 if (by some miracle) the best deal for me was a Northern Rock 10 year fix.

It doesn't surprise me that this poll is going in a typical MSE direction - MSEs want everything for nothing. Isn't that a change? (Er, no). Is that realistic? (Er, no).

Fallen_Angel_6

Reading this to me it seems like brokers are caught between a jagged rock and a hard lumpy place

I'd be happy if my broker just got me a mortgage from the products that paid them commission as long as they didnt just pick the highest commission mortgage, but i do think it would be better for brokers to have all mortgages on one database rather than having to look at lots of different sources to compare everything

I don't think fees are a very good idea as not everyone can afford to pay them especially first time buyers who have enough to pay out these days

MarkyMarkD

The point is that paying a fixed amount for the advice, NET of any commission, is far fairer for the customer as it removes 100% the incentive for a dodgier adviser to advise a product purely because it pays higher commission. And it doesn't have to cost the customer more - as long as the fixed level of fee is similar to the average amount the adviser currently earns in commission.

Of course, an interesting consequence would be advisers advising a lot more non-commission-paying mortgage products - which would then make other lenders think "Hm, we could do a non-commission-paying version of this product and it would be more profitable/we could set the rate lower". I'm not sure where that would go eventually?

kenshaz

MortgageMamma wrote: »

Hardly a relevant contribution to the thread Kenshaz - its opinions I'm asking for - that seems to be a generic statement rather than an opinion. Your opinion as a consumer is most welcome, but do make sure its your opinion, not your crusade.

What level of service would you like to receive from your mortgage broker Kenshaz? and how do you think that broker is most fairly remunerated?

Value for money,the best service at the best price.Present me with the options and let me make a decision,nothing hidden all in the open ,nothing complicated or ambiguous.I do not wish to deal with a salesman/women,just a professional who cares more about me than his/her bank balance.