Broker fees and insurance

muhandis

As indicated by the multiple caveats in my post and as stated, I agree that if the OP haven't been treated unfairly/unethically by the broker, it would be unfair to cancel the cover triggering a clawback.

ACG wrote: »

But then why take them out in the first place?

If there is no intention of keeping the policy, then you should not be taking it out... you are knowingly taking money away from someone elses family/table - and worse still, getting them to work for it. How would you feel if your boss asked you to do paid overtime, then went back on it and said you were just working late of your own accord?

This broker has offered you 2 pricing models, you had the option of saying no thank you to both and finding a broker elsewhere or trying to negotiate a fixed fee.

I was brought up to know if I say something, I stand by it.

ACG

Sorry, I did think as I was typing you may read it like I was having a dig at you. I was not doing that, I was using your post as an example.

Richey_

ACG I had not thought of in that way that actually for a very low mortgage OP could well be cheaper although it sounds a lot when as a percentage. I am by no means anti broker, I think they do a marvellous job especially for people whose mortgage is not straight forward. Just feels like OP has contracted themselves into a high rate brokerage fees where the broker is likely to be both getting commission on the mortgage and also paying the property developer for the pirvaledge of being their recommended / required.
You hear horror stories with both brokers and estate agents whereby even if they have a DIP they are required to see their own mortgage broker to "confirm affordability" and to see if they could save money. If OP is buying from a developer it is likely they will not have a £50k mortgage but well into the hundreds so thousand. If the OP was to need a £250k mortgage they would pay around £2000 in brokerage fees which does sound high.

OP - how much is the house you are buying and how much deposit do you have? Which mortgage lender is the broker introducing you to? What Interest rate? Are you self employed or do you have adverse credit? Only reason why I ask as without more details it would not be possible to say if 0.8% is a good deal or not. OP could be a hard customer to place and would take up say £2000 of the brokers time.

Kind regards
R

WayneS_2

can anyone tell me how to post a new thread?

kingstreet

WayneS wrote: »

can anyone tell me how to post a new thread?

Go back to the last page and press the blue button top left which says "New Thread."

WayneS_2

Many thanks

erin110

I saw you said "us" as you are not alone, maybe already have a family or looking to extend your family, why would you not take out insurance???
What would you do if you suddenly lost the bigger income coming into the household?
How would you cover your bills/lifestyle?


Dependant on the maths against the difference in the online premiums and the 0.5% fee difference why not just take out the insurance for a year then review it and look for a cheaper provider if a cheaper premium is your aim. This way the advisor will still get their commission without a claw back.




With insurance its either cover or cost, what is more important to you.