'Free' Independent Mortgage Advice

rootfm

Hi,

We are in the early stages of re-mortgaging due to potentially moving house. I checked the best deals for our LTV via comparison sites and lined up a few appointments, one of which was with Nottm Building Society.

When we arrived at The Nottm the chap explained he was an independent mortgage advisor, who has access to most of the market (not just Nottm BS) and can help us to apply for and agree any mortgage deal available. My first reaction was to ask for his 'fee', but he said it is all absolutely free. His salary is paid by The Nottm, who in return receive a small finders fee from whichever bank's product they sell to us.

It's left me wondering - what's the catch?!

I appreciate he doesn't have access to every product but having checked extensively myself I can't see any glaring omissions.

Why doesn't every home buyer do this if that's the case?

Thanks.

dunstonh

'Free' Independent Mortgage Advice

Not possible.

My first reaction was to ask for his 'fee', but he said it is all absolutely free. His salary is paid by The Nottm, who in return receive a small finders fee from whichever bank's product they sell to us.

That means he cannot be independent. Independent means you have to offer a fee option which rebates/offsets the commission. What he describes is a whole of market adviser. Not independent.

rootfm

Thanks.

So he is potentially biased towards certain products (i.e. those that pay a higher finders fee perhaps)?

Basically i'm wondering whether there would be a disadvantage to proceed via him than go direct to the bank/building society offering the best rate?

ACG

Im whole of market, meaning i only offer products that pay commission.

Im not biased towards one lender or product over another. The commission is pretty much the same from lender to lender - there can be marginal differences but were talking .1 or .2 of a percent at the most.

If your being offered the same rate through a broker as you are direct, i would go through the broker - let them do the donkey work for nothing.