Moneyback mortgages - ethical?

dixie_dean_2

Hi

I can't decide whether to use this website or to stick with the broker that did the legwork. I appreciate that if it was me I'd be !!!!ed off if I did the work and then someone used my advice elsewhere. However, I'm prepared to try and get them to offer me the same cash back as MBM. I notice from the key facts thing that the building society will pay them £520 which seems like a lot of money for not a lot of work. I also feel that this is the way themortgage system works and ultimately if I dont use MBM I'm giving away £160.

Any thoughts?
Cheers

dwsjarcmcd

You could always give your broker the option to meet MBM's terms?

luckyfool

dixie_dean wrote: »

Hi

I can't decide whether to use this website or to stick with the broker that did the legwork. I appreciate that if it was me I'd be !!!!ed off if I did the work and then someone used my advice elsewhere. However, I'm prepared to try and get them to offer me the same cash back as MBM. I notice from the key facts thing that the building society will pay them £520 which seems like a lot of money for not a lot of work. I also feel that this is the way the mortgage system works and ultimately if I dont use MBM I'm giving away £160.

Any thoughts?
Cheers

By dealing with MBM you would lose alot of the protection you would have otherwise received by dealing through a broker on an advised basis. Effectively MBM act on a non-advised basis so you have no comeback through them if the deal you take is unsuitable and you obviously cannot go back to the original adviser if a problem comes up as he will wash his hands of it.

I remember once I had a client where I recommended a Northern Rock product where it was outwith their criteria but I knew I could get a senior underwriter to approve it as an exception. Client ended up going with a broker who was a friend of the family but on the product that I had recommended. 2 months later I had the client calling me up looking for me to sort their mess out as their mortgage had just been declined and I had "said that it would be fine with Northern Rock". As you can imagine I wasn't too chuffed, nor was I inclined to get involved.

Back to the point at hand, your broker has offered a full advice service, maybe (s)he will be willing to give back that cashback, maybe they won't be but remember you get what you pay for. If you go through Moneyback Mortgages then you are going to get no frills service with minimal comeback in the event of problems.

dixie_dean_2

I appreciate the differing service levels however it's not a problem as I'm pretty comfortable with the mortgage I'd going with and sure I understand it. I will be honest woith them and see if they'll match it.

MortgageMamma

If you were my client and begrudging me earning £520 you'd would be hurled through the door.

I won't bother taking the time to explain to you how many hours even a straightforward case can take, as you can obviously only see in £££'s.

Brokers are entitled to earn a living from what they do, especially if they do it well. Its clients like you that force brokers to charge upfront fee's. I feel sorry for the broker whose time and resources you have wasted. This might be a money saving site but if you going to save yourself money at least do it with some principles.

dixie_dean_2

Ok, firstly I'm asking the question, not saying it's something I'd definitely do. If you can't close your sales and are struggling with the old mortgage don't take it out on me.

dunstonh

I notice from the key facts thing that the building society will pay them £520 which seems like a lot of money for not a lot of work.

£520 is a pittance. Its one of the reasons I dont personally transact mortgages and leave it to my mortgage adviser. Thats just the gross payment as well. By the time the regulatory costs, office, staff, stationery, network, compliance, software etc has all been paid for you then have a much smaller chunk to then pay your NI and tax on as well.

MortgageMamma

dixie_dean wrote: »

Ok, firstly I'm asking the question, not saying it's something I'd definitely do. If you can't close your sales and are struggling with the old mortgage don't take it out on me.

Best laugh I've had all day! :rotfl: :rotfl: :T

homer_j_3

I don't think its a fact of MM not being able to close her sales that has got her back up, its about the fact that you clearly feel that £520 for arranging your mortgage is far too much money to earn.

When you consider operating costs (stationary, office, elec, water and heating etc) and the cost of insurances that brokers have to pays, it eats away at the money you see being received.

You then have to consider that your broker will spend 1-2 hours trying to understand your circumstances and preferences. They will then have to spend more time researching the products that have been shortlisted to make sure its right. They will then spend more time filling the paperwork in for you and then seeing the application right through. I wont say that it takes x hours because it always differs with all the costs involved it does not provide brokers with a pocket full of money as you may first think.

Some brokers will charge fees and not disclose lenders because of people that do this exact thing. We cannot stop people doing this but what you need to understand is that the MBM cashback may not save you the money you think.

If you are doing other insurances with the adviser they may have some scope to give you a bit of a sweetener. I could for example offer 3 months free b&c or mppi which might help...

I dont think you will get any broker on here saying "yeah use and abuse" because its something very close to our hearts but you need to understand what the real cost of professional advice comes at.

MortgageMamma

homer_j wrote: »

I dont think you will get any broker on here saying "yeah use and abuse" because its something very close to our hearts but you need to understand what the real cost of professional advice comes at.

What real cost does a fee's free adviser pose to a client? Its free in most cases, but even then the clients want money back! when will people stop pushing the boundaries and stop asking for more? Proc fee's in most instances are appallingly low for the amount of work a broker does. There will be clients asking us to record our time working on their case next to justify how much we get paid.

terese

where are all these brokers? They are always in a rush, tend to be so busy and try to spend as little time with your case as possible. I am sure that the broker that I used spent less than an hour all together on my case!!