One for the brokers

Pixie5740

He's whole of market or as Kingstreet says, whole of broker market. I'm paying him a fee rather than him working for commission. I thought this would be better than the first time I got a mortgage through the estate agent's broker (I know!).

kingstreet

We charge a fee (£250) and a are paid commission.

Where we are, clients wouldn't pay a bigger fee for commission rebate (as they would end up worse off) and a lot of our lower value stuff we'd have to turn away if we didn't charge a fee as the commission would be under £200 not enough to cover costs.

csgohan4

kingstreet wrote: »

Even if your broker is whole of market he won't tell you about direct to lender only deals as he won't be able to arrange them, same as HSBC, YBS etc.

Whole of market is more accurately described as "whole of broker market."

If he is acting on a fully fee-only basis, where you are paying only for the advice and any commission from a lender is refunded to you to offset the fee, he may tell you about direct-only deals.

How then does a buyer ensure he get's the best deal if the broker is not able to access the direct to lender deals?


Will they at least be able to tell the buyer there are x deals out there, they can't arrange them but you can apply direct? Because I am sure there is a long list perhaps of lenders not on brokers lists for direct only

kingstreet

Borrowers should;-

consult a broker for broker-only and combined deals

research direct to lender deals themselves.

Many brokers won't tell you about direct to lender deals (unless you agree to pay them on that basis) as they want to remain in business. Others may be unable to do so due to restrictions placed on them by lenders.

kingstreet

Our terms of business reads;-

"Whose mortgages do we offer?

We are not limited in the range of mortgages we will consider for you but not deals that you can only obtain by going direct to a Lender."

and

"How are we paid?

We will charge you a fee on application of £250, we will also be paid commission from the Lender."

lonestarfan

Op - slightly off topic - you mention house v flat. If I had my time again I would've stretched for a freehold house even if it was a tiny house. Is freehold also in Scotland? - I don't know.
The point being that my flat is leasehold and not a day goes by that I don't get some kind of Bill or letter from the managing agents and I'm an organised person, pay on time and follow the rules of leasehold of which there are many but it's still an annoyance I could do without.

Pixie5740

We don't have that freehold/leasehold thing in Scotland. When you buy a flat you actually buy it rather than leasing it for 99 years.

I could buy a house with the deposit I've got but not in an area I would necessarily choose to live in.

lonestarfan

Pixie5740 wrote: »

We don't have that freehold/leasehold thing in Scotland. When you buy a flat you actually buy it rather than leasing it for 99 years.

I could buy a house with the deposit I've got but not in an area I would necessarily choose to live in.

I've learnt something today then about freehold/leasehold
Location is key isn't it so I can see why you'd decide on a flat.

In_For_A_Penny_2

Just a note of caution regarding Nationwide Flex deals - as the above posters point out, these are only for customers of nationwide and require a direct application.

I too was interested in this product but without involving a broker I have found this process to be slow and painful to say the least.

csgohan4

In_For_A_Penny wrote: »

Just a note of caution regarding Nationwide Flex deals - as the above posters point out, these are only for customers of nationwide and require a direct application.

I too was interested in this product but without involving a broker I have found this process to be slow and painful to say the least.

interesting, so direct only maybe better in terms of lower interest, but the extra work involved or grief may be counter productive