Broker/Mortgage Genie/MoneyBackMortgages - How quick compared to buy direct?

Anon

A quick question for you experts out there please. In Martin's article on mortgages, he draws attention to Money Back Mortgages and Mortgage Genie who give you 50% of the broker fee back on completion. I realise that you get no advice for this, but think that I have found the deal that I want.

1.Has anyone used Money Back Mortgages and Mortgage Genie?
2. How long do they take to arrange a mortgage (in comparison to buying direct from the BSoc etc)?

In relation to 2, but more generally, does it take longer to buy through brokers (compared to direct) and can you get an agreement in principal?

Many thanks

Anon

dunstonh

time difference is little or no difference. Indeed, brokers can actually be quicker as many have online submission for some lenders which isnt available by their own staff members.

Dont be hyped into the commission being saved. Typical commission on mortgages is 0.1-0.3%. If you feel doing all your own admin, using a paper application and having no FOS protection is worth the small amount you will get then fair enough.

kenshaz

dunstonh wrote: »

time difference is little or no difference. Indeed, brokers can actually be quicker as many have online submission for some lenders which isnt available by their own staff members.

Dont be hyped into the commission being saved. Typical commission on mortgages is 0.1-0.3%. If you feel doing all your own admin, using a paper application and having no FOS protection is worth the small amount you will get then fair enough.

£300 is better in your pocket.That is on a £100000 mortgage.If I paid you £20 an hour you could spend 15 hours on admin and paper application .Some might not regard that as a small amount
I would consider all advice that Martin gives,look at the facts analyze your circumstances and the information data on the available mortgages and make an informed decision.If you do all that ,you will have made an informed decision .
If your circumstances are complicated and you do not feel confident then seek advice ,but the vast majority are routine and easy money for the broker.

dunstonh

£300 is better in your pocket.That is on a £100000 mortgage.If I paid you £20 an hour you could spend 15 hours on admin and paper application .Some might not regard that as a small amount

You wouldnt get £300 though as they have to keep half for themselves. So, you only get £150 back. Is £150 really worth the extra work you have to do yourselves? Some will say yes because they have nothing better to do with their time. Others will say no because the amount back isnt worth the time spent.

but the vast majority are routine and easy money for the broker.

I wouldnt call it easy money. It doesnt pay enough to be easy for the amount of work involved.

If I paid you £20 an hour

ROFL.

kenshaz

OK I am inviting observations on the amount of time required to complete on an uncomplicated straight forward mortgage.We can then divide that into a fee received ,and my £20 will look cheap .

MBM

Just to get rid of some of the miss truths from brokers on here. You do not have to do all your admin. All you have to do is complete the application form and send it to us. We have a team of admininstrators who make sure your application progresses smoothly to completion. To reiterate Martin, we are not for the customer who is not confident about which mortgage is best for them, we are aimed at people who know what they are looking for and are confident in their ability to choose the right mortgage for their circumstances.

Qual123

you have to bare in mind that this site is aimed at saving money, while i feel this is a good thing and that martin has helped a hell of alot of people, sometime spending a few quid can help you out as well.

£20 per hour for an IFA?

If you want to do all the admin yourself thats up to you. do you fix the brakes on your car? or do you take it to someone who is an expert at fixing brakes and can do it in much less time?

dunstonh

You do not have to do all your admin. All you have to do is complete the application form and send it to us.

Doesnt that mean you are doing your own admin? Instead of the mortgage broker filling in the details on their laptop/pc and submitting it online direct to provider or filling out the paperwork for you. I assume the individuals have to post their passport/driving licences etc to you as well?

And obviously you cannot offer any advice, opinion or comment on the mortgage selected without breaching execution only rules. Even if you know a better mortgage exists. The FOS made it clear earlier in the year that they would consider as little as a nod towards a product as breaking execution only and would treat the case as advice.

What happens when something goes wrong or further admin is required above the standard? There was a post last week about another execution only firm Martin lists in his articles as a good choice where they wouldnt sort out a problem the person had without making a charge as the problem wasnt of their doing.

I have nothing against the business model here and remember I dont transact mortgage business so have no axe to grind. However, the execution only service is a different beast to advice (and especially face to face advice) and you need to make sure you are suited to what you are going to get. Just look at the number of complaints we see about L&C on here which are mostly down to the individual getting a different type of service to what they expected.

kenshaz

Qual123 wrote: »

you have to bare in mind that this site is aimed at saving money, while i feel this is a good thing and that martin has helped a hell of alot of people, sometime spending a few quid can help you out as well.

£20 per hour for an IFA?

If you want to do all the admin yourself thats up to you. do you fix the brakes on your car? or do you take it to someone who is an expert at fixing brakes and can do it in much less time?

I suggest that they earn a lot more than £20 an hour ,that was an analogy on an £100000 mortgage at the quoted commission rate.

The brake analogy does not wash,it is emotive,there are millions who carry out there own servicing .I personally would not feel confident in respect to mechanics,but I would buy a mortgage off the shelf.We are talking about uncomplicated transactions,I also know more about my needs than any third party.
It is about choice,those who can give them the opportunity and stop protecting your pot of gold.

MortgageGenie

Anon wrote: »

1.Has anyone used Money Back Mortgages and Mortgage Genie?

2. How long do they take to arrange a mortgage (in comparison to buying direct from the BSoc etc)?
[/quote]

I'm not here to debate the advised / non-advised issue as this has been done many times before.

1. I can not answer this question for obvious reasons.

2. We process all applications on the day we receive them.

toonfish

nice - looks like we're allowed to advertise now.