Mortgage Broker Hard Selling Insurance

[Deleted User]

DontBringBertie said:

ACG said:

zagfles said:

I've had this with dodgy mortgage brokers in the past. They make more from commission on insurances etc than they do from brokering mortgage (one of  them admitted this to me), and refused to broker me a mortgage unless I took out insurances or an endowment (yes it was a long time ago).

Have you tried going direct to the bank/building society for the mortgage? Cutting out the middleman?

Thats not quite true. 
It can be, but not always. 

But there is nothing wrong with a broker saying they will only do your mortgage if you take out insurance. However it needs to be discussed and agreed upfront. From the brokers perspective it would also be a good idea to document it and get it signed/agreed to via email. 

Spoken like a true mortgage advisor.

How is there nothing wrong with saying “I’ll only do my actual job if you buy other stuff through me too”?

Another way of wording a fee agreement of this sort would be:  'My maximum commission on this case will be £xx so any other products you take that pay me commission will result in my mortgage fee being reduced accordingly'.  This seems fair and its told upfront so no one is blindsiding anyone.  

A lot of brokers are running their own business.  They need each deal to be commercially viable. Is there anything wrong with that? I had a case recently where the lender paid £18 commission (existing client, very small additional borrowing).   If that was a new client who wasn't taking any other products then I would have passed on the case entirely. 

Linking the brokers desire to do a case to the amount the earn from it isnt as devious as you make it out.   The wording has to be clear at the start and either party is free to say no to it and to walk away.