Moneyback mortgages - ethical?

Lomion

The guy who arranged my new mortgage at no cost to myself was paid £720. I would have had no problems with him being paid much much more. Nothing to do with me really.

He got me a fantastic deal, was and is very helpful. Couldn't thank him enough. He probably saved me over £200 per month on interest charges alone.

Seriously considering sending him a case of Champagne .

Suppose it's just a different way of looking at it. I don't see that money as being mine or having anything to do with me.

dixie_dean_2

The reason I went from ASKING A QUESTION to, mainly tongue in cheek, thinking they are the devil's spawn, was the massive, one-sided, self-serving over-reaction my dilemma received. It seems I walked into the lion's den and suggested maybe we should consider feeding the lions a bit less. ROARRRRRRRR, they all went. Maybe I should have posted this in The Arms for a more unbiased response. Before this starts another war of words I'm not saying that because you are biased you are wrong but you cannot doubt you have a vested interest. If I do not go ahead with the mortgage I found myself I'm still undecided as to using MBM. The can of beans analogy is not very helpful. I would think it is more like going to a shop for a pair of running shoes (I don't imagine any of you advisors would ever do this - probably either too fat or more into the stress relief from your ever so hard jobs offered by pounding a squash ball) and meeting a lovely young chap who is very helpful, takes you through the different options, considering your foot type and running style. But then you go to the next shop (or internet) and see the same shoe for less. Are you tied to buying from the first guy?

dunstonh

Personally, I think the broker you arent going to use is better off with you not being a client.

toonfish

I agree with dunstonh - and with respect if a client came back to me after I had sourced a deal and asked for a commission rebate because someone else was offering it I would politely decline and tell them to go elsewhere.

Our clients come back time and time again, it costs them nothing from their own pocket and they know they will get good honest advice.

What do Money Back Mortgages give you if you want to arrange a deal with HSBC or Britannia?

lynzpower

If I do not go ahead with the mortgage I found myself I'm still undecided as to using MBM. The can of beans analogy is not very helpful. I would think it is more like going to a shop for a pair of running shoes (I don't imagine any of you advisors would ever do this - probably either too fat or more into the stress relief from your ever so hard jobs offered by pounding a squash ball) and meeting a lovely young chap who is very helpful, takes you through the different options, considering your foot type and running style. But then you go to the next shop (or internet) and see the same shoe for less. Are you tied to buying from the first guy?

Honestly? Is there really any need for statements like this?

It says more about you than it does about mortgage brokers.

MortgageMamma

It always make me laugh the stereotypical nonsence people come out with about mortgage brokers, its like saying all male hairdressers are gay. ridiculous. Gone are the days of doing business in the golf club over a whisky and a cigar. We don't all live in half a million pound houses and drive £60k cars. It takes a long time to build that sort of wealth.

dixie_dean_2

But quite clearly none of you can see a joke or answer questions dispassionately. I'll end this here, none of you are interested in dialogue, only your one-sided view of the world and thanking each other.

roosterbean

Can I offer my unbiased view - I used to work in a financial adviser's office on the admin side, and I used to think wow all these proc fees and commission fees must really add up in their wages.

However, after three years of working there, I used to watch all of them work from early in a morning until late in the evenings, sometimes house calls, they would have to fit in management meetings, training sessions, they also had very tight targets to reach if they wanted to keep their jobs and on top of all this, the paperwork they had to prepare for each case was getting more and more complicated and long-winded to adhere to the very strict rules that the compliance departments set.

They also have to keep their knowledge up-to-date as products change on a regular basis, whether it be a mortgage, life insurance, pension...

I, for one, could not and would not want to be an IFA but I would not begrudge any fees they receive for a service that it is in place to protect you and your family in the future.

luckyfool

dixie_dean wrote: »

I would think it is more like going to a shop for a pair of running shoes (I don't imagine any of you advisors would ever do this - probably either too fat or more into the stress relief from your ever so hard jobs offered by pounding a squash ball) and meeting a lovely young chap who is very helpful, takes you through the different options, considering your foot type and running style. But then you go to the next shop (or internet) and see the same shoe for less. Are you tied to buying from the first guy?

Funnily enough I agree that the running shoe scenario is quite appropriate. You're certainly not tied to buying from the first guy, but if you go out and buy exactly the same pair of shoes online to shave a couple of quid off then I think it says alot about you. I had exactly this scenario a couple of months back in a local Running Shoe shop, and after this guy spent 20-30 minutes with me, trying on 5 pairs of shoes and walking up and down in a straight line so he could check whether they were correctly adjusting for my over-pronation and then he finally recommended the right pair for me. Now maybe I could have walked out and checked online and shaved £10-15 off the £80 they were charging me. Did I do that? No, and that was an ethical choice I made. In fact the thought never even crossed my mind.

MBM

Toonfish, when you arrange a mortgage with Britannia or HSBC how do you get paid? You say that your mortgages cost your clients nothing from their own pocket, yet as these two lenders do not pay commission how do you make any money?