Take extra care when using brokers at moment

payless

I've advised on mortgages since 1988, so I think I know that people need help and advice! Its my living

I actually am more than happy about people transacting their business in whichever way they want ( and by that I mean consumers going advised, non advised or direct ..their choice, AND brokers running their own business in the way they want to)

BUT

This is a consumer site , and what I would like is for consumers to be given a fair and transparent deal... and the meaning WoM to be explained ( or perhaps replaced) so it means what the consumer would reasonable believe this to mean ( as well as stataments like " all mortgage deals " )

Dual pricing is a barrier to proper advice , but does that mean we should not offer the best deal?

dunstonh

A little bit of good news for mortgage brokers. The FSA has come out and said it has no immediate plans to extend RDR to mortgages although it may do in the future but now is not the time.

Dan_Collins_2

dunstonh wrote: »

A little bit of good news for mortgage brokers. The FSA has come out and said it has no immediate plans to extend RDR to mortgages although it may do in the future but now is not the time.

LOL they know it will lead to a firebomb attack and riots lol!! :rotfl:

Ian_Griffiths_Halifax

payless wrote: »

I've advised on mortgages since 1988, so I think I know that people need help and advice! Its my living

I actually am more than happy about people transacting their business in whichever way they want ( and by that I mean consumers going advised, non advised or direct ..their choice, AND brokers running their own business in the way they want to)

BUT

This is a consumer site , and what I would like is for consumers to be given a fair and transparent deal... and the meaning WoM to be explained ( or perhaps replaced) so it means what the consumer would reasonable believe this to mean ( as well as stataments like " all mortgage deals " )

Dual pricing is a barrier to proper advice , but does that mean we should not offer the best deal?

It doesn't come across that way:eek:

It looks as if you are a bitter and twisted 'independentish' adviser who is happy to take money off people to advise them to do it them selves rather than doing the hard work your self.

I do apologise if this is wrong, but this is the image you give me.

By the way, I've been in the business since approximately the same time, so you can't pull the wool over my eyes, and with over 2500 mortgages and under my belt, I recon my dad is bigger than your dad.

Ian_Griffiths_Halifax

Ian_Griffiths_Halifax wrote: »

Just out of interests, do the Cashback sites or those brokers offering to rebate the procuration fees advise the clients that there may be Tax payable on the money they receive?

Not a single response to this post! I didn't think there would be and I was right.
:money:

Dan_Collins_2

If you have been doing this since 1901 or 1999 like me, TCF means we have to tell clients to go direct.

Its up to the client if they listen, but for .5% or more I know what I would do!

payless

Ian_Griffiths_Halifax wrote: »

It looks as if you are a bitter and twisted 'independentish' adviser who is happy to take money off people to advise them to do it them selves rather than doing the hard work your self. I do apologise if this is wrong,

Getting personal is not the way to go here , so I accept your apology.

2500 mortgages ... never really had reason to count my personal record ( until RMAR) ... I'm much lower volume, high quality- service centred these days, but guess add in my business from my earlier years and I'll give your count a run for your money.

My points are all about openness and fairness -

Ian_Griffiths_Halifax

What some advisers on here don't seem to appreciate is that there is a big difference between telling a client to go direct because the rate would be lower (which I've done on plenty of occasions) and the fact that some would be daunted by the thought of doing it and need help.

Not everybody is just after the lowest rate, most want a knowledgable adviser and relible service!

A client came to me a few weeks ago and I got him a Decision in Principle with a lender. When he went to a branch of that lenders Estate Agents he was advised to see their adviser as they could get better rates than brokers. This was just before it became apparent of what was going on as the lenders didn't tell brokers that they were going to do this, and the direct deals weren't appearing on sourcing systems.

The client went to see their adviser despite being happy with me and the decision I'd got them and even showed the DIP to the adviser. The adviser said he'd just talk to them about deals but without them knowing, did another DIP. They didn't know he was doing one as they didn't want one, but he just said 'You've been declined'! The clients were furious that he'd done one without their request.

They came back to me and the application was submitted last night at 6pm.

Same lender, same information supplied for the DIP, a high street lender, their own Estate Agents, different result!

Ian_Griffiths_Halifax

payless wrote: »

Getting personal is not the way to go here , so I accept your apology.

2500 mortgages ... never really had reason to count my personal record ( until RMAR) ... I'm much lower volume, high quality- service centred these days, but guess add in my business from my earlier years and I'll give your count a run for your money.

My points are all about openness and fairness -

I know how many mortgages I've arranged and clients I have as I have a database of all my clients so I can service them and advise them when their penalties and deals are ending etc. I also know when any loans they have are ending so that I can call them to remind them that their outgoings are about to drop so how about overpaying on their mortgage to reduce the term and save money or make bigger payments on their credit cards.

I don't know of any lenders who have called their customers to tell them to overpay when loans have ended.

homer_j_3

Payless is right in terms of the FSA have made it confusing to the consumer in terms of the WOM loopholes. You try and explain to a client and they hear you but don't appreciate the actual impact of what you are saying.

As an adviser for a bank/building society and most major chains of Estate Agents, you are restricted to the products that can be offered and those advisers in the main will only tell you about the deals that they can access. They will not suggest that you go direct because they do not have access to the internet or information that tells them this to say that the direct deal is far better.

Now looking at brokers who are part of networks (some of which will be attached to estate agents - usually the smaller independent ones) will have access to this information but not all will send away as they will want to retain the business in this climate so will just tell you which is the best deal that they can get and Payless is just trying to say that the consumer should be aware of this.

I am aware that certain clients will want advice and certain clients will want quote beater order takers and that is where the news this week has indicated that the FSA are finally seeing this. In the investment world, I believe that they (FSA) are wanting to put all tied or multi tied advisers down to "Sales People" or something similarly names and those that offer true Indpendent/WOM advice to be called "Advisors" and these people will charge a fee only I believe. I would welcome this clarity in the mortgage world.

As far as I can see - the message is still the same:

Please ask your adviser for a list of the lenders that they can offer advice on. Understand that very few brokers will actually consider lenders that do not pay commission - even if there is an advice fee. If you want advice then please understand you will get only get advice on those lenders listed and that you may miss out on some direct deals through this.

When choosing an adviser, if they cannot answer simple questions in a direct and straight manner then try and understand whether its selling techniques that are causing this issue or whether its because its not a simple question.