Brokers on MSE

ACG

Nothing to apologise for. You are doing nothing wrong by asking for a fee free broker (I say that as a broker who charges fees). The issue is that there are brokers prepared to work fee free. It happens in any industry, there will always be people prepared to work for less tha the rest of the market.

glosoli

You could always just side step the broker completely and approach a lender directly! ....

sultanabran

glosoli wrote: »

You could always just side step the broker completely and approach a lender directly! ....

True, however my circumstances mean I'd be better enlisting the help of a broker who understands the best lender(s) to approach rather than me going in scatter gun and approaching multiple lenders.

silvercar

sultanabran wrote: »

It wasn't my intention to ruffle feathers or upset the brokers on here. It's clear from the posts above that things have moved on quite a bit since I last enlisted the use of a broker.

Some brokers are more defensive than others. Anyone who posts in an open forum (consumer or broker) risks that not everyone will agree with them.

It is interesting that there are no fee free brokers on here at the moment; either there are not many in existence or they are so busy they have no time to spare!

ACG

My bet is a combnation. There are less fee free brokers and the ones that are here are working like mad men in order to earn a wage.

csgohan4

bare in mind brokers will have more access to mortgage deals with some not even visible to customers directly


Even HSBC who were direct only are now available to brokers, although a select few. I am waiting for my broker to be on their panel and I will be set for life.


I got my broker on here too, paid for their services to, worth every penny. Didn't have to do any stupid telephone interrogation or endless form filling. Simple Fact find conversation, couple of scanned documents and offer in 2 weeks.

NOVAMET21

sultanabran wrote: »

Not sure if you will be allowed to answer this as it may be classed as advertising but do any of the brokers on MSE work on a free (nothing is ever free, commission from lender) only basis?

I got my first mortgage with Abbey 12 years ago via a broker on here who was great. I can't remember his name or any of his details or even whether he is even still on here.

I think there are 2 reasons why some of the brokers doesn't charge fee.


1. They want to attract more customers hence more income even though the income per case would be less than if they would have charged the fee. Overall income would be higher though. However, there are not many advertising or marketing to actually grab customer's attention so the overall income might not be higher after all. Brokers will have a big risk if the mortgage doesn't go through. Brokers who charges fee, they normally charge a flat upfront fee so that they don't actually work for free if the mortgage doesn't go ahead for any reasons. They charge the remaining at the completion.


2. If the broker is based in the location where the house prices are expensive then the average mortgage amount would be higher. Hence they would receive higher commission so they don't need to charge fee but again there is a risk if the mortgage doesn't go through though.


I have been with both brokers who charges fee and who doesn't charges fee. The broker who charged fee asked me £95 upfront and £200 at the completion. The broker who didn't charge me fee was willing to work fee free as he worked in a location where the house prices were very expensive. I think he was lucky as the building development of that area chose him and gave an office in their show room. So I presume the people who bought houses in that development took his service.


I'm not a mortgage advisor but if I was then I think I would charge some fee as there is always a risk that the deal won't go through and you worked for nothing. Every decent mortgage advisors or their company has a model that will help them to reach their targets/goals/profit.

amnblog

The income received from lenders is to cover the cost of bringing the borrower to the Lender in a format that allows the Lender to offer the mortgage.


It does not cover the cost of advice to the borrower, that is what the broker fee is for.


A broker not charging a fee is working for free.


Few Professionals work for free.