What do you expect from a mortgage broker?

AndyWallace

AndrewSmith wrote: »

On paper more people like this idea but I would sugest the results would be different in the marketplace.

Indeed, many people can't even afford the survey fee.

MortgageMamma

Do you think it would be fairer for a broker to offer clients a menu of services which would incorporate all the options, and explain the options to them at the initial interview? that way a client could pick a level of service that they could afford and which they thought best suited their needs

Do you think that would be treating customers fairly?

AndrewSmith

It is a similar concept to all these claim solicitors that seem to be springing up all over the place. If you had 3 against each other like so:

1) Charged a flat fee win lose or draw
2) Charged an upfront fee but refunded it and took a slice of commission if they win
3) No win no fee with the same slice of commission being taken if they win

Mr Public will usually always go for the option that offers the least amount of financial risk to themselves, ergo the no win no fee scenario.

Same principle generally applies to mortgage broking.

A huge percentage of the population would pay lip service to 'paying a fair fee upfront for the valuable work the mortgage broker does' to be refunded at completion of the loan however in reality when it actually comes to the point of them handing over the fee upfont you would find most would not want to. Largely because it is coming directly out of their pocket immediately unlike a broker fee that is added to the loan where they may see an increase of a few pence in their monthly payments, but dont actually have to hand over any cash.

AndrewSmith

MortgageMamma wrote: »

Do you think it would be fairer for a broker to offer clients a menu of services which would incorporate all the options, and explain the options to them at the initial interview? that way a client could pick a level of service that they could afford and which they thought best suited their needs

Do you think that would be treating customers fairly?

No, because the level of service offered to a client should not depend on whether they can or cannot afford/want to pay a fee upfront, added to the loan or not at all.

Treating Customers Fairly is offering a uniform level of service to all clients irrespective of their ability/inclination to pay a fee.

I have nothing against brokers charging fees if that's what they want to do however I do think that they either should, or shouldn't to remove any grey area and uncertainty with the client.

The vast majority of customer complaints against broker firms are in relation to fees and charging structure for the advice given.

Therefore it seems simple that if a uniform service is offered to every client the exposure to issuing the wrong IDD to the wrong client is removed thus reducing the risk of complaint.

MortgageMamma

I do tend to agree with what you are saying Andy, perhaps we should have a tips jar on our desks? lol (sorry, bad Monday morning humour)

So in order to TCF we have to narrow down the consumers choice of level of service and payment options....

Busy now. I have a car, laptop and mobile phone to replace so I will come back to this in an hour or two when I have finished spending money I don't have.

MM

toonfish

MarkyMarkD wrote: »

I'm interested to know what level of fees you charge, toonfish - is it similar to average commission? And do you fully rebate commission to customers who choose to pay you the fee?

Generally 0.3%-0.5% of the loan amount (depends on the case) and all commission rebated. As I said though, hardly anyone ever goes for it.

MortgageMamma

Are you VAT registered Toonfish? I know we get a partial exemption but not being a tax expert I can never work out why some FS firms choose to VAT register

Mr_helpful

Hmmmmmmmm having an on the ball day today and just re read the title of this thread and then discovered that there are mainly only replies from brokers. Perhaps its time we sat back and listened to what the customers want from us
you never know. while we are up our own !!!!!! writing here wardlaw is probably PMing everyone else

MortgageMamma

Well It was aimed at consumers and no doubt its mostly brokers that have voted I would think. If you read through I have said once or twice that its consumer opinion I want, however the discussing has been interesting.

I wouldnt worry about wardlaw - there won't be many daft enough to use an illiterate agrressive broker who presents imaginary mortgage products

toonfish

MortgageMamma wrote: »

Are you VAT registered Toonfish? I know we get a partial exemption but not being a tax expert I can never work out why some FS firms choose to VAT register

the network is VAT registered, so we need to charge VAT for a general review, but not if specific advice is given and a contract arranged