The media and the market

tomstickland

It makes perfect sense to me. Now that things are tighter the advisors have to look more closely at what's costing them and what's paying them. Cutting out the element that cost a lot and provide little income is neccesary.

Gorgeous_George

Makes sense to me.

When there is less business around, you either need to put the prices up (to pay all the wages) or find something else to do for a living. If it's a blip, you can get away with this policy. If it is more than a blip, redundancies are sadly inevitable.

GG

NeilQuinn

I've had some very irate customers on the phone this week (quite rightly as well). The service levels from lenders have become appalling. I've never experienced so many replies of "Sorry - we never received your fax" or "It's still with the underwriter" (after a month).
My deals are all prime as well, going into Halifax, Abbey etc. I felt like walking out, several times this week.

TwelfthMan

Another serious problem for brokers is the number of lenders who are withdrawing their products from being applied for by intermediaries.

This week I have tried to place a client on a tracker and the lowest rate available on my sourcing software was BoE +0.84% (could have found lower with 1.5% product fee) yet there were more attractive deals available with Britannia, YBS and Yorkshire Bank - none of which pay proc fees or show up in Trigold searches. Add to that the First Direct deals which brokers simply cant compete with.

Its more often becoming a case of "sort your mortgage direct yourself and I'll arrange your protection for you"

Treadmill

I'll be honest, I've never understood why there is a need for mortgage advisors surely finding the best deal and applying for it is not rocket science, does the customer get a cheaper deal going through a mortgage broker ?

Dan_Collins_2

Treadmill, to be honest it can come down to how much time a client has to deal with it. We deal with all the flack, they just sit back and let us deal with it. Each person is different, I must admit if I was not a broker I would not use a broker, at least I dont think I would.

Then you get people that the high street cant help, then a broker can be very useful.

On the whole mortgages via direct or via a broker are no different.

dunstonh

Treadmill wrote: »

I'll be honest, I've never understood why there is a need for mortgage advisors surely finding the best deal and applying for it is not rocket science, does the customer get a cheaper deal going through a mortgage broker ?

Typically, a lot of the lenders do more business through brokers than they do through their own branch network. When a broker is used, the lender has virtually no liability and far reduced overheads compared to that of the branch.

Historically, many lenders offered deals that were only available through brokers. The current situation has seen many deals pulled but in general you wont pay any more and you may pay less.

There is a demand for mortgage brokers although there is too many mortgage brokers at the moment but the credit crunch will see numbers reduce. They ideal for first time buyer, those that dont use the internet, those that need proper research and those looking for the best service standards for a quick mortgage.

I think over time the demand for mortgage brokers will reduce as it goes the way of home insurance and car insurance although there will still be a market for them.

baby_boomer

Dan_Collins wrote: »

I dont think Conrad is advising anymore, I think he just owns the practise.

Well that's all right then :rotfl:

Mortgage brokers in India in 2010. There's an idea.

kenshaz

dunstonh wrote: »

Typically, a lot of the lenders do more business through brokers than they do through their own branch network. When a broker is used, the lender has virtually no liability and far reduced overheads compared to that of the branch.

Historically, many lenders offered deals that were only available through brokers. The current situation has seen many deals pulled but in general you wont pay any more and you may pay less.

There is a demand for mortgage brokers although there is too many mortgage brokers at the moment but the credit crunch will see numbers reduce. They ideal for first time buyer, those that dont use the internet, those that need proper research and those looking for the best service standards for a quick mortgage.

I think over time the demand for mortgage brokers will reduce as it goes the way of home insurance and car insurance although there will still be a market for them.

Why have you changed your tune.I have been concerned about the numbers of brokers jumping on the band-wagon for years,perhaps this correction will help.The problem is I still see posters asking questions about cemap etc ,so they are still rolling in.

With one voice you state that there are to many brokers and with your other voice we have a demand ,please step down from the fence ..

They have been frenzy feeding and you have previously supported them..
I have always stated that ,looking for a mortgage was not not rocket science,and whilst brokers had delusions of grandeur ,we paid the price in fees and commision.
The quote by brokers that we provide special deals for mortgage brokers only has evaporated ,consumers move on ,do your own research and save money,save for a deposit ,keep your credit rating in good order and your access to the market will remain.

Conrad

kenshaz wrote: »

I feel that your ref to moneysavers as penny pinchers and parasites is against the basic principles and ethos of this site.

To moneysave without considering its effects is to my mind short sighted.

We all ought to think about the effects of our desire to save money.

It is absolutely the case that our desire for cheap goods and services is only sustainable where the worker at the end of the chain accepts very low rates of pay ($100 per month in China, a lot less in Vietnam and so on).

When we smuggly pat ourselves on the back for finding an oh so cheap mobile phone, lets spare a thought for the children of Angola and other places, forced to work 16 hour days at the expense of an education to dig up the raw materials used in thier manufacture.

When we demand ever cheaper insurance lets think about the knock on effect to call centre income levels.

Ive always lived by the code - do unto others as you would want done to yourself.

By all means shop around, but lets not always get so hung up on cost and price. Dont expect advisers to work merely for commision that is only paid if the client does'nt pull out at the last moment.
Would we expect teachers to only be paid if the kids pass thier exams?