Fee Free Brokers to be a thing of the past?

toonfish

We do not charge fees yet, do not force insurance/protection sales, deal with very littl eadverse but still manage to make a living. Not as easy as it was but just because you do not charge a fee for mortgages in no way detracts from the quality of the advice, despite popular misconception from some on here.

If HSBC/Britannia is right for the client we tell them so, and rely on future referalls and repeat business rather than a proc fee today.

herbiesjp

Looks like I have a similar business model to toonfish

It also depends on on what you class as a good living - some people may want to earn £100k some people may be happy with £30k

All my business is from clients coming back and referrals they make to me - so in all honesty I have the business levels I need to not change any fees - as all my other overheads are low

Tiddler - are you a broker?

Tiddler_2

Yep.
Started out 2 years ago self-employed & not making anything like either figure you have quoted!!

UK007BullDog

Halifax guy, dont make me laugh. The banks push their insurances the hardest and they are the most costliest on the market too. I know, I used to work for banks.

Its not just a whisper. Its a fact that it will happen and the others will pull in too. Then everyone who wants proper advice will have to pay for it.

Poppys way will then be no longer possible as customers will have to pay upfront for advice which will then be refunded or built into the fee once the mortgage goes through.

UK007BullDog

So what can you do?

Make sure the adviser is completely whole of market. You are paying a fee and should get access to ALL lenders lending in the UK.

herbiesjp

Tiddler wrote: »

Yep.
Started out 2 years ago self-employed & not making anything like either figure you have quoted!!

In the first couple of years of setting yourself up as self employed, you will not make that much, unless you have a good client base/bank to get your business from

And dont ever be afraid to turn business away - turn it away if it is fraudulent. Turn it away if you cannot beat a quote provided by a client. Turn it away if a client can get a better deal direct

It's better to be honest and up front, as clients will respect you more for it. They will also be more willing to refer business from other friends as well

Ian_Griffiths_Halifax

UK007BullDog wrote: »

Halifax guy, dont make me laugh. The banks push their insurances the hardest and they are the most costliest on the market too. I know, I used to work for banks.

Its not just a whisper. Its a fact that it will happen and the others will pull in too. Then everyone who wants proper advice will have to pay for it.

Poppys way will then be no longer possible as customers will have to pay upfront for advice which will then be refunded or built into the fee once the mortgage goes through.

I totally agree. My comment was relating to the thread title and not the services provided by Banks or Building Societies.

Please do not confuse me with a Bank who happen to be located close by!

Ian_Griffiths_Halifax

Tiddler wrote: »

Yep.
Started out 2 years ago self-employed & not making anything like either figure you have quoted!!

Hi Tiddler. I'm new to this site and I don't want to go telling you seasoned vets what to do, but shouldn't you have the Mortgage Advisor Disclaimer signature if you are a broker?

UK007BullDog

Yes Tiddler, read the sticky and get your signature sorted. Just a friendly heads up, OK!

Conrad

All the fee free brokers I've come accross, sell insurance. They will imply the insurance is not pushed onto clients, but this is a misrepresentation by most as they will IN one way or another try and bring about insurance sales.

Even if they are'nt pushy about the insurance, the fact remains thier time is diluted, I should know, I used to sell the stuff, which meant many hours of work each week sourcing and processing insurance (not to mention the insurance seminars and training events) which in turn meant less time to meet will ALL the lender reps.

In the end people approach me with one objective in mind; To arrange a mortgage. They therefore deserve and expect me to be 100% immersed in that field.
Anyone can sort out thier own insurance independantly so my not offering it in no way undermines client outcomes. We merely refer people to a specialist IFA.

Most of my business comes by way of client referals so charging a fee clearly does'nt seem to deter people. Sometimes its just a £99.00 up front comittment fee. Generally about £250 although can be thousands for the complex more risky business.