Take extra care when using brokers at moment

TwelfthMan

It is worth reminding clients that while they are getting better deals direct with the lender, it is almost certain they will pay over the odds taking the lender's recommended protection products.

A bank or building society's offerings are vastly inferior to if a customer was to take full whole of market protection advice.

jediknightwarrior

There is a piece in moneymarketing covering this issue. Here.

RubyShoes

I went to see a fee free whole of market broker in February. I had sourced a tracker rate which I felt was most suitable for my needs, but wanted to see if she could beat it. She couldn't. She lied to me and told me that the deal I wanted had been pulled, and that I should go ahead with her deal (Tracker 97% LTV 0.4.9 above base rate) there and then before it too was pulled.

Pull the other one - I got my deal direct the same night, and saved myself £50 a month over the next 3 years.

It didn't pay to use a broker in my case, even when I didn't have a particualrly straightforward case (3% deposit, tax credits as part of income and 4x income multiple).

Dan_Collins_2

RubyShoes wrote: »

I went to see a fee free whole of market broker in February. I had sourced a tracker rate which I felt was most suitable for my needs, but wanted to see if she could beat it. She couldn't. She lied to me and told me that the deal I wanted had been pulled, and that I should go ahead with her deal (Tracker 97% LTV 0.4.9 above base rate) there and then before it too was pulled.

Pull the other one - I got my deal direct the same night, and saved myself £50 a month over the next 3 years.

It didn't pay to use a broker in my case, even when I didn't have a particualrly straightforward case (3% deposit, tax credits as part of income and 4x income multiple).

Sad to hear, she must have known you could have found out so not sure what she was thinking!?

I have sent one client away to go direct today, 1 last week and probably 2 a month since 2008 started!

payless

I've sent 7 to HSBC alone this month - about £1.7m

that would have been a bumper month !

dunstonh

Did you charge for those 7 payless?

payless

No

All but one were existing clients , who have other business with me also - whom I would rather keep as long term clients .. a couple had asked about HSBC themselves at start of appointment anyway

Dan_Collins_2

Well I think a research fee may be added to my IDD the ways things are going.

Just had the Woolwich guy in. Only BDM that has shown an interest in seeing us, but he said they have no idea how long this will be going on for. They know they are hurting us brokers but they need to cut lending and keep the branches busy. They lent 200% of target already this year!

payless

Yep a fee ( varying based on whether its telephone or involves me travelling) seems a given. I'll set it out as its to be refunded if we later transact any commission earning product ( mtg or insurance) .

payless

BDM... all gone quiet on that front !