Some mortgage brokers dont know who their friends are

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  • paylesspayless Forumite
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    MarkyMarkD wrote: »

    I'm interested, MM, in how technically you manage to advise on all products including direct-only providers and direct-only products? I have seen other brokers claiming elsewhere that because these products aren't on the sourcing systems, it's completely unrealistic to expect brokers to even know about them and therefore to give full and complete advice. As I said earlier, the same brokers appear to have been advised that this is OK by their regulators (or at least, that's how I read it in this week's Financial Adviser).

    .

    Thilst "broker sourcing systems have the better calculate/ filter options, not all the direct deals are included , there are sites ( such as emoneyfacts , FSA tables ) that allow us to extend our research, although their functions are not as useable as the paid for systems ... so one usually ends up also checking on lenders own sites!
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • MortgageMammaMortgageMamma Forumite
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    MMD, as payless says, there are ways of doing this, subscribing to the professional version of moneyfacts is one, I also use a copy of the FSAs websites results as well just for file purposes even though its largely out of date. Moneysupermarket etc is another. Then the product needs to be verified on the lenders own website.

    Looking at the direct to lender and non commission paying deals is a new step for me. Recent changes within the industry have prompted me to do it - for my own good as much as the clients. I feel good about it though to be honest - I dont find it a negative thing at all, I think it simply increases my professionalism and my clients confidence in me, and my conscience is clean because I know I am doing the very best that I can for each client. Its a win win situation - if a client won't pay a research fee which could be refundable they are probably not serious enough to commit to doing the business via a broker anyway.

    MM
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • pepsicola_2pepsicola_2 Forumite
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    I've lost clients when they have gone direct to the lenders themselves after taking advice from me. Its a really smug feeling when they come back with their tails between their legs because they can't do what they thought they could. or what the lender told them they could initially. There will always be a need for financial advice. Anyone with a brain knows that. Brokers and financial advisers will always be around because we add value to transactions and give confidence to our clients that they are taking the right course of actions. A good adviser will ensure all your needs are met and educate you on the products you are considering.

    The only thing that will change about our profession is how we are remunerated. If people continue to waste the time of fees free brokers pretty soon we will all be charging fees.

    Thanks, that was exactly the response I wanted. I've obviously made you consider other aspects that you wouldnt have normally known about, so I'm doing my job right, and you have proved to me that not all MSErs are immoral when it comes to saving money.

    MM

    Are all mortgage brokers just as smug as you?
  • MortgageMammaMortgageMamma Forumite
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    pepsicola wrote: »
    Are all mortgage brokers just as smug as you?


    I wouldn't know, obviously I don't know ALL BROKERS, but you could ask a few yourself and form your own opinion.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • BrokeRageBrokeRage Forumite
    83 Posts
    Lol, priceless. No, they are not, Pepsicola. Some are quite humble. Personally, I don't see any time educating clients as being wasted time, as long as they don't act in an outrightly cynical way i.e. if they think you are the best, they should use you. Not just for moral reasons, but to assist you in all aspects of the transaction. The advice is just the first step in the process; the application, chasing, protection, liability and after-sales service are all aspects of the process to which a good broker can add value, fees-free or not. The sheer amount of time I spend with two phones on moniter, or even a phone on each ear, is ridiculous. I had a case turned down today (a week after submitting it) because an underwriter at a major lender did not understand that dividends are the same as income for a company director. It will be agreed again by the end of the week, but some lenders seem to be "Cherry-picking" to an inordinate degree. Going direct really is buyer beware territory and I would take further issue with Martin Lewis when he says that it is only the advice that counts for the "Savvy", who then choose to go direct. It isn't much of a cash-back if you lose your survey fee or the home of your dreams as a result of going it alone.
    I am a Mortgage Adviser You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • melanchollymelancholly Forumite
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    so Martin, did you get a reply to the lengthy email you sent the broker?! or is it a step up in abuse from the original one and therefore can't be published on the site?! ;)
    :happyhear
  • BrokeRageBrokeRage Forumite
    83 Posts
    I hope that my posts don't come across as abuse; I am genuinely trying to make a reasoned argument for using diligent Whole of Market brokers. We are currently being marginalised by cynical lenders who, in the long term, will cost themselves billions, if not trillions, if the housing market does crash due, in part, to their short-term greed. The whole structure has been under-pinned, rightly or wrongly, by the skill of brokers in sourcing affordable mortgages. There are many home-owners, with mortgages, who will suffer in the medium and long term from this shift in market attitudes; there will be few winners, but many losers. I was here in the early 90's. Those times are on the way back and I fear for the British public. We need a soft landing, but all the signs are there for real disaster and those that stand to lose the most are doing the most damage by their attitudes.
    I am a Mortgage Adviser You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • melanchollymelancholly Forumite
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    just a thought - if i wanted to get building work done on my house (let's imagine for a minute i could afford to buy and then afford to extend ;)) - i'd go get quite a few quotes and also ask for recomendations. to just go to one person and go with them would be daft. why would getting a mortgage be different? is that a better analogy than getting a tv?

    i guess in a lot of professions you bid for a contract and if you don't get it, you don't get paid anything for your time - it's just 'unlucky and move on'. solictors and some mortgage brokers are different somehow....
    :happyhear
  • MarkyMarkDMarkyMarkD Forumite
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    I like your thinking, but I don't think it's the same. A substantial amount of the work expended by a mortgage broker is in understanding the client's needs and recommending an appropriate product.

    That's different to simply quoting for a building job, where the quote part is a tiny proportion of the total effort of the job.
  • melanchollymelancholly Forumite
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    hmm... so mortgage brokers are more like architects then if we go down the building analogy. interesting
    :happyhear
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