"independent whole of market broker"

MotT

Hi All,

I've met an independent broker this morning (in Edinburgh) who said he's an "independent whole of market broker".

When I mentioned deals I came across with Yorkshire Building Society (the FT say they currently hold the best 10 year fixed rate) and first direct (where I hold a bank account), he qualified his statement and said that those 2 are actually not covered by them. That's because these 2 believe they're big enough without the help of independent brokers.

Is that normal? "Whole of market" to me sounds like, well..., whole of market?

And just if you happen to be based in Edinburgh: using ESPC in nearly all aspects of house buying (broker, solicitor, etc.) seems fairly standard. Is it?

Thank you, MT

ACG

Whole of mrket means their offering is representative of the whole of the market - ie they cover pretty much everything.

Independent means they can offer EVERYTHING.

It is possible to do both, but you have to offer to charge a fee and rebate the commission, it doesnt sound like thats being offered which means they are actually whole of market, not independent.

kingstreet

ESPC?

Independent and whole of market mean two different things.

Independent means I'll charge you a fee for advice. I'll find you the best deal in the market. If that deal pays me a commission, I'll rebate that commission to you to subsidise the fee. I may arrange your mortgage too.

I'll also recommend deals only available to you directly from the lender, so my service will be advice only. In which case, there will be no commission to rebate and no arrangement service.

Whole of market means I'll only recommend deals which pay me a commission. You may have to pay me a fee on top. This should best be described as "whole of market for commission-paying deals."

I will advise and arrange your mortgage.

MotT

Thanks Both,

That clarifies!

ESPC is the Edinburgh Solicitors Property Centre. They're omnipresent and in fact all solicitors (I understand that's the equivalent to an agent in England) advertise their property via them here. It also seems a unique model though...

Best, MT

amnblog

Independent does not necessarily mean that the broker offers absolutely everything.

As KS says a broker that offers a fee only option and has 'whole of market' options will usually call themselves independent.

Borrowers and investors sometimes expect 'independence' means the advisor works in some kind of commercial vacuum. Practicalities mean that you cannot expect to have access to every product and every provider with any independent - nor do you need to in order to get the right advice.