Nationwide mortgage... Guarantor??

rdsmortgageman

I would suggest now trying a 10% deposit.

lgirl_2

Do you think there is no chance at all of getting a 95%?

lgirl_2

I will wait until after our appt with our new broker tonight I think, just in case they come up with any ideas. Are you based in Scotland? Not sure how ideal that is as we are in SE england. Also, what are your fees... or is this more advice??? Thank you!!

Ian_Griffiths_Halifax

rdsmortgageman. You do know that it's against site rules to poach for business don't you?

Also, looking at your web site, I am surprised that you have 25 years experience as the 'advice' you have given on this and other threads is a little dubious tbh. Are you new to this?

You say you are Whole of Market and yet your site says you are Independent. You need to learn the difference as, if you don't know the difference, how can you be explaining the difference to your clients.

lgirl_2

What is the difference between the whole of the market and independant? I thought they were the same?? thanks!

homer_j_3

Independent means that the adviser will give the option to operate independently of any commission bias. If you want to make sure that your adviser is not going to choose a product purely based on commission then this is the route you would take.

Whole of market means that they work from a panel of lenders that will be representative of the market place . As it is possible to be WOM with very few lenders, it does cause confusion and misunderstanding - hence why I stated that you should ask for a list of lenders being researched. WOM advisers can be independent too.

If you are going to pay a fee, then make sure its on the independent basis in that the commission will be returned back to you. If they want a fee and to keep the commission, then I would walk away and look elsewhere.

A lot of WOM brokers will work without a fee or in a similar way to how I work where ultimately you do not charge a fee if the client is committed to trying to get the advice through you.

Ian_Griffiths_Halifax

Different people work in different ways. Some charge because they believe they are worth it.

You can get a hair cut for £5 or pay somebody else £65. The person who charges £65 thinks he's worth more and if people are willing to pay that it's up to them. Women will appreciate that example more than the guys, but it's just the same in Mortgages. You get what you pay for, but there are always some cowboys brokers thrown in the mix, just like there are bad but dear hairdressers.

Anybody who doesn't charge a fee must be getting their income from somewhere and it's usually through selling policies that aren't always needed or wanted or affordable. How can they recommend lenders who pay nothing or very little as a procuration fee if they don't charge either?

You can't knock fee charging brokers who also take procuration fees, as they may be charging a smaller fee BECAUSE they are getting a procuration fee.

Just because you choose to be 'independent', it doesn't mean that everybody has to be. I know of 'independents' who work from a panel of lenders and have their favourites.

'Independent' simply means that you MUST offer the client the choice of paying you a fee OR you get paid by the lender, not as well as. 'Independent' doesn't mean that you will look at every lenders deals, as you say, they can be Whole of Market too.

It is being disputed as to whether or not a client must pay tax on any 'rebated' commission/procuration fee, as, if it were paid to the broker, then he would have had to pay tax on it as a form of income. In that respect, if I were a client, I'd rather pay a smaller fee on the basis that the broker would be receiving a fee from the lender as well. If that's the case then I would be looking for a good, reputable Whole of Market broker, not an Independent. I wouldn't want to find that I had an unexpected tax bill some time after I'd spent my rebated commission.

homer_j_3

Ian_Griffiths_Halifax wrote: »

Different people work in different ways. Some charge because they believe they are worth it.

You can get a hair cut for £5 or pay somebody else £65. The person who charges £65 thinks he's worth more and if people are willing to pay that it's up to them. Women will appreciate that example more than the guys, but it's just the same in Mortgages. You get what you pay for, but there are always some cowboys brokers thrown in the mix, just like there are bad but dear hairdressers.

I don't think that paying more money for advice necessarily gives you better advice, in fact it is my experience that people charge higher fees because they have higher costs - i.e. going to toni and guy in leeds where prime location retail space costs them 10 x more than the prime retail space in that small town 10 miles away.

Anybody who doesn't charge a fee must be getting their income from somewhere and it's usually through selling policies that aren't always needed or wanted or affordable. How can they recommend lenders who pay nothing or very little as a procuration fee if they don't charge either?

The income derives from procuration fees and you are right that a charge may be made if the mortgage pays no proc fee but trying to say that a broker who does not charge will provide bad advice and unaffordable protection advice is fairly offensive to those good advisers who do not charge a fee because they have managed to run their business in a way which keeps overheads down.

You can't knock fee charging brokers who also take procuration fees, as they may be charging a smaller fee BECAUSE they are getting a procuration fee.

Thats a strange way of looking at it. If that is the way that business has to operate to gain the required income to operate then fair enough but the fact remains that consumers need to understand that the different ways of operating do not qualify better or worse advice. Charges are made because costs are higher for those businesses. End of.

My personal reason for disliking fee + commission route is purely because its normally added to the loan, has interest accruing on it for years and the fact that a lot of people who operate this way will "sell" this fee to clients on the basis they get better advice.

It is being disputed as to whether or not a client must pay tax on any 'rebated' commission/procuration fee, as, if it were paid to the broker, then he would have had to pay tax on it as a form of income. In that respect, if I were a client, I'd rather pay a smaller fee on the basis that the broker would be receiving a fee from the lender as well. If that's the case then I would be looking for a good, reputable Whole of Market broker, not an Independent. I wouldn't want to find that I had an unexpected tax bill some time after I'd spent my rebated commission.

You may be liable to income tax on going the independent but where a lot of people will have the fee added to the loan where fee and commission route is taken, would the income tax liability be higher than a 25-40 years of interest on the added fee?

A lot of what I have read on here, seems to me that someone has been to the salesman school of selling a broker fee.

homer_j_3

Bravo! Bravo RDSmortgageman!

You blatently did not read the rules, you have told a client to be fraudulent with a lender and I wonder if a call to the FSA would be worthwhile, just incase they didn't spot it.

This website has been built on the basis of goodwill and no I do not come on here to boost my business at all. I come on here to offer my time and help people. I have not seen anyone arrive on this site and cause so much concern for the advice that they have given. Nor Have I seen any adviser with their company logo in their profile pic or in their website in their profile so how can you question us for trying to generate business on here. We all run businesses and are intelligent enough to know we could happily put this up there to try and generate business but we do not as we come on here to help people.

You are right that posters do get benefit and have the right to choose to do business with people on this board but its through their freewill and choice and not through you offering to do the business.

My business is doing OK for what I want from it thank you and the fact that I am able to spend time on here should not be any concern of yours either.

Ian_Griffiths_Halifax

rdsmortgageman wrote: »

All of you other advisers who have done nothing but slagged me off since I started to post, can you confirm with your hand on hearts that you all come on here to give free advice and don't try and do it to boost your business? Lets face it boys, (and girls) if your business was doing well, you wouldn't have time to reply every 2 seconds to posts on here!

Hand on heart, I don't come on here to get business. I couldn't cope. I come on here in my spare time, evenings and weekends for a break :rolleyes:

You want to see my diary. It's chocca.