Ok This Is Not Funny Anymore

sarkin

Martin recomends peole use fee fee brokers but when their commision gets lower and lower with over heads rising they will have to charge a fee or go out of business.

Dan_Collins_2

I can see lenders changing the way they see and use brokers. A few more ymil scams and fraud cases should do it! They will decrease proc fees and people will have to pay for advice.

For whatever readon Q1 was/is down on business written but up on paid, last year for me was the best ever so I may never have repeated it. However I have started think about what is next!

ixwood

People won't have to pay for advice, people that need/want advice may choose to pay for it!

And do brokers offer advice or just find a mortgage?

Things must be really bad if you're considering charging for a (mostly) non essential service

My full stop key is broken btw

It's more of a pain than I'd imagine

Dan_Collins_2

IN some cases we do just find mortgages, but a lot of peolpe use a broker as they need advice and not just a search engine.

I know thay wont have to pay for advice, but if they want to use a broker they will if lenders cut proc fees.

merlinthehappypig

We visited a broker on Thursday who spent a fair time telling us that the amount of commission that gets has dropped dramatically and that 'the job is hardly worth doing any more'.

We don't think that it was any surprise that the mortgage he recommended gave him a 0.8% commission when many others paid 0.4% or under, even though we didn't rate it compared with others. Every deal he considered for us was accompanied by a look in his commission rates table.

It hardly filled us with confidence and needless to say we won't be going back.

Personally I'd rather pay a fixed fee to someone who then works hard on our behalf free of any pressures to earn commission.

sarkin

ixwood wrote: »

People won't have to pay for advice, people that need/want advice may choose to pay for it!

And do brokers offer advice or just find a mortgage?

Things must be really bad if you're considering charging for a (mostly) non essential service

My full stop key is broken btw

It's more of a pain than I'd imagine

Not everybody has found this site and therfore need and want as much advice as they can get.

Some people are busy and just want to pay a broker to get the job done as we do also provide a service which some people forget.

You have to remeber that not everybody uis financialy savy as you are.

moneylessbella

problem for you guys is just that. People have to be more financially savy just to survive. Hence the use of this site by an ever increasing number of people fed up with the mediocre advice they have been given in the past. Having just paid a broker £450 to come up with a commercial loan only to find there are no loans available for small business I do feel rather cheated.

minimike2

Im always upfront about commission too - however unlike some brokers I am always upfront with my mortgage sourcing. I always show my client the sourcing results on the screen and how they have been arrived at. Honesty goes a long way - I did a BTL last week with so little commission that meant I actually lost money after factoring in all my costs - but she was so happy with me she told two of her friends. I now have another BTL and a commercial lead from it. She also then told me about the other three BTL properties she has that she didnt tell me about initially and I will get those when they are ready.

I also have to charge fees in some circumstances - without fees there is no doubt I would not be self employed as it would not be viable to do the job, however where possible I do try to not charge one and where I do I keep it as low as possible and never charge it until completion. If I get a client who is a "quote engine lemming" as homerj puts it (i like that one!!) then I advise them to seek advise elsewhere. (Only had to do this once so far tho!!). Generally my clients go to sign up and I have very few who dissapear after a first meeting.

Comments above are right - People that are willing to pay a fee generally dont have the time to do it themselves and are more than happy to pay for the service. Dont forget its not just the "sourcing a mortgage" that we do - we do all the follow up work as well, which takes more time than actually arranging the mortgage in the first place - there is a lot that goes into it from application to completion and some people just dont know how or want to do this, and in perticular clients with complicated circumstances NEED to see a broker.

Im sure no one here would be willing to go to work for free eh?

dunstonh

Personally I'd rather pay a fixed fee to someone who then works hard on our behalf free of any pressures to earn commission.

Thats the way IFAs are going and the FSA have hinted that they will extend that to independent mortgage advisers as well. The proposals are still under consultation and I am hoping the FSA dont water them down.

Paying a fee and getting your mortgage, general insurance and life assurance all arranged with nil commission terms or commission rebated to offset the fee can actually be a cheaper way of doing things.

Many of us here can offer life assurance cheaper than the companies mentioned by Martin in his articles (such as Cavendish). So, paying a fee that encompases the whole lot can be cheaper than using a fees free adviser. Especially on larger mortgages.