is it ok to work with two brokers?

ACG

Its nothing like buying a car.
Just like its nothing like going comparing tescos beans with asdas beans.

What about if your boss came to you and said someone is doing the same job as you. After you have done a couple of hours work (factfind, research and possibly traveling) he is only going to pay one of you?

Would you sit there and do your job or would you tell him where to go and walk out?

I have no issue doing work and not getting paid for it. I pride my business on me only being paid if I get the mortgage. What I do expect in return is that the person who comes to me has complete confidence in me.

If both brokers are aware they are competing, I have no issue with it... they are aware of the full facts and can choose what to do. I dont compete, purely because I would hope I give people the confidence to trust me, if they do not thats fine but its a 3 month process from start to finish. If trust is not there from the beginning then what happens if things go down hill?

I also do not see my job as a sales job. But in saying that, only a small percentage of my business is "normal", the bulk of it is adverse where people need the help of a broker so I dont feel like im selling anything as people tend to come to me rather than me chasing them.

amnblog

Let's be clear Egoode.

This is NOT a sales job.

Yes, we have to promote our service above others available as all businesses do, but we do not 'sell' mortgages.

In the first place, the borrower wants the product and does not have to be sold it?

In the second place it is not the borrower's, nor the broker's decision as to whether a 'sale' takes place - the lender has to agree to provide the product.

Like ACG, if we find a borrower is using two brokers we will not assist. That way only leads to confusion for the borrower, time lost for both brokers, and conflict for all parties.

We often have borrowers come to us to help them where another broker has been unsuccessful in securing their funding. In these cases also, we make sure that the original broker has been asked to stop working on the case, before we pick it up.

Mortgage broking is therefore wholly different from a sale role.

My final point:

How it can be right to obtain an offer through a broker then 17 months later attempt to place the business elsewhere, cutting the first broker out, in spite of the work completed, is beyond me.

Mortgage_Mark_2

kingstreet wrote: »

If someone calls us and they already have a broker working on their case, we have to try to come up with an alternative approach.

Our builders won't accept us standing aside and telling them to get on with it with their first broker.

...then your builders should take a different approach - your principles should be with the client not the builder, surely!

You cannot possibly justify someone going with you through a different lender on a worse product, just because your builders won't accept you doing what you could (maybe should) do?

EDIT: For the record, I wouldn't use two brokers, what's the point? If you're that bothered about window shopping, do it yourself - you don't engage a broker to just find the best deal, there is an awful lot more to it than that.

You're just wasting at least one of them's time.

kingstreet

Mortgage_Mark wrote: »

You cannot possibly justify someone going with you through a different lender on a worse product, just because your builders won't accept you doing what you could (maybe should) do?.

Who said anything about a worse product?

Wow, you've made quite a leap there. I was indicating we would compete for the business, but that will be based on product quality and ability to deliver the desired result in the required timescale!

In our experience, other brokers have little knowledge of newbuild and we often get people (for example) telling us they can have 75% on a BTL newbuild flat with NatWest etc because another broker has told them that.

Mortgage_Mark_2

kingstreet wrote: »

Who said anything about a worse product?

Wow, you've made quite a leap there. I was indicating we would compete for the business, but that will be based on product quality and ability to deliver the desired result in the required timescale!

In our experience, other brokers have little knowledge of newbuild and we often get people (for example) telling us they can have 75% on a BTL newbuild flat with NatWest etc because another broker has told them that.

That's fair enough, and apologies if it sounded like I'd made that assumption. Just sounded like you were using the motives of the builders to determine what you do with clients?

Sounded like you had to find another option to get them to use you, that was all.

Apologies.

(Agree about new build by the way, I bow to your knowledge on that, it's not something that we have a great deal of involvement in!)

betmunch

On the original question I think you could be causing yourself a problem.

If you came to me saying I am asking you for a quote, and another guy for a quote then I will go with whoever is cheapest you would go straight to the bottom of my priorities.

Now if the other guy did the same you would be at the bottom of his pile of priorities as well.

Not saying it would happen, just that it could.

Remember brokers have a finite number of cases they can take on, and that the work load for a mortgage has increased a lot in recent years.

kingstreet

Mortgage_Mark wrote: »

That's fair enough, and apologies if it sounded like I'd made that assumption. Just sounded like you were using the motives of the builders to determine what you do with clients?

Sounded like you had to find another option to get them to use you, that was all.

Apologies.

(Agree about new build by the way, I bow to your knowledge on that, it's not something that we have a great deal of involvement in!)

Same as us with contractors.

We do a good few, but we're by no means specialists.

I guess we're more "mass market" and are often in competition with EA advisors and bank staff rather than other specialists in our sector as they may not have thought of a newbuild early in their planning.

I can understand why amn and ACG don't want to spend hours on one of their far more involved cases if there's someone else involved.

bri160356

Mortgage_Mark wrote: »

...then your builders should take a different approach - your principles should be with the client not the builder, surely!

You cannot possibly justify someone going with you through a different lender on a worse product, just because your builders won't accept you doing what you could (maybe should) do?

EDIT: For the record, I wouldn't use two brokers, what's the point? If you're that bothered about window shopping, do it yourself - you don't engage a broker to just find the best deal, there is an awful lot more to it than that.

You're just wasting at least one of them's time.

As someone who has been out of touch with ‘contemporary’ mortgages for quite a while I’m keen to learn about the services offered by a mortgage broker such as yourself. My daughter is in the process of buying her 1st home.

What other services do clients want/expect other than the best deal you can get them? i.e. what is the, quote; ‘awful lot more’ that you provide?

Many thanks.

Mortgage_Mark_2

bri160356 wrote: »

As someone who has been out of touch with ‘contemporary’ mortgages for quite a while I’m keen to learn about the services offered by a mortgage broker such as yourself. My daughter is in the process of buying her 1st home.

What other services do clients want/expect other than the best deal you can get them? i.e. what is the, quote; ‘awful lot more’ that you provide?

Many thanks.

1. Making sure that you actually meet the lender's criteria before applying - you wouldn't believe how often people come to us having been declined elsewhere because a crappy adviser gave bad advice, or they went to a bank offering a headline rate (it's headline for a reason...)
2. Verifying borrowing with estate agents etc - again, this is a PITA for brokers, agents are either stupid, ignorant or both when it comes to mortgage timescales
3. Chasing the application through - you try calling a lender to ask for an update....good luck!
4. Exclusive products - whilst the 'best rate' is often not the main driver of using a broker, we do often have access to products that as a customer you won't get - the vast majority of the BTL market for example is intermediary only...
5. Understanding - Especially as a FTB, clients generally don't know half the jargon that is written on lenders' websites, which makes a big difference when it comes to calling them to get an update.

And many, many more things besides, but these are probably the main 5 for me that I can list as I'm heading into a meeting!

ACG

Part 2 on marks post is understated there.

I deal with estate agents for my clients once the offer has been accepted. The reason for this is that Estate Agents have commission in mind, they apply so much pressure to the buyers because they can play on heart strings "were advising our client to put it back on the market if...." where as when they deal with brokers its purely business and we are experienced enough to know they are bluffing most of the time.

If the agent applies pressure to you, you apply it to us and everyone gets stressed, if they deal with us directly they tend to be a bit more accepting that an application is in progress and leave us to get on with it.