Save Your Mortgage Broker

TwelfthMan

I just phoned the recruitment guy who placed me with my current firm self employed 2 months ago. Have instructed him to see what he can find for me on an employed basis as I simply can not make it pay. Have enough money to keep me going prob until end of July - after that I'll start defaulting on payments unless business picks up.

My current firm has paid a £3k fee for me to the agency which they will lose. The only other thing I can think of is to ask them to pay me an income for 6 months until things hopefully pick up and they take it back from commissions between now and then and if necessary claw back afterwards too.

wisbech_lad

So, will there be a T-shirt? "Save The Mortgage Broker"!

Yep, volumes are drying up, commissions will be squeezed. Banks that only have limited pots of mortgage money to give out won't feel any need to pay itermediaries for distribution. And as they only want to be lending to super safe credits, the documentation is much easier - again no need for a broker to pull together all the info

Tough times ahead

neas

so what exactly does a broker do? Just arrange a mortgage for you ?

Cant i just use moneysupermarket.com for this? :P

minimike2

Oh here we go....

TwelfthMan

neas wrote: »

so what exactly does a broker do? Just arrange a mortgage for you ?

Cant i just use moneysupermarket.com for this? :P

Yes, particularly if you're a 55% LTV, borrowing 2.2x joint income with squeaky clean credit.

Not everyone is though.

I've just been on the phone to a client who has cancelled 2 appts already, rang him back to try and get an appt sorted for next week. Told me they'd been accepted by Nationwide yesterday for a 3yr fixed ONLY AVAILABLE THROUGH BRANCHES. I'm ready to throw the towel in today.

Conrad

TwelfthMan wrote: »

I simply can not make it pay. Have enough money to keep me going prob until end of July - after that I'll start defaulting on payments unless business picks up.

Sorry to hear your plight, but I'm not sure business will pick up.

There are essentially 2 underlying factors as I see it;

1) There have been far too many people drawn to this industry in the last 5 years. What we are witnessing now is a natural cull of numbers.

2) The 10 year boom was fueled by funny money, where risk was'nt properly priced, and everyone thought property prices only went up, init!:rotfl:
Now money is prices correctly and criteria will not be losened for some time to come.

I dont wish to be harsh to the OP, but the lack of care in the presentation of thier post to me hints at the sort of broker that really gets me heated. They simply do not have the knowledge and correct mindset to be advising people on thier most crucial finanical endeavour.

Did he for example even spot this crash comming? I bet he didnt have the slightest clue. I'm sorry but to be giving such important advice I really think brokers worthy of the title should have a lust for financial markets as evidenced by them reading the FT, watching CNC Business news, Radio 4 and so on.
I got so tired of brokers not even considering whether B2L was a good idea in the last 2 years. They just flogged the mortgages without any really thought or hollistic advice.

There are too many brokers of the shiny buckle boot wearing salesmen ilk.
The sort that would exagerate a clients income on the mortgage application and then not tell the client that this very same income needs to be evidenced when the client claims on the income protection policy they flogged em!:T

Lets get rid of em I say and clean up our image.

Conrad

neas wrote: »

so what exactly does a broker do? Just arrange a mortgage for you ?

Cant i just use moneysupermarket.com for this? :P

I agree with the sentiment here. In the village where I live, noone uses Brokers, and its always been the case people could access a range of lenders brokers cannot, such as F Direct, Newcastle and Co Op.

I've never really understood the reason for brokers seeking to operate in what I would broadly term the 'Middle class sector'.

I'm hear for the complex cases, end of.

Dan_Collins_2

Conrad, you always go on about this cull. I know I am a good broker, I know I am not a BM driving insurance sales man! My clients and EA'a can confirm that, but......

I am being driven out of this industry through no fault of my own! I am now looking for a job outside of FS as I think being employed by a bank or BS is like selling your soul to the Devil!

I saw a crash coming a few years ago, what was I to do? Leave a job I love because the yanks were having to much fun??

I just hope you dont have to come on here and defend your self Conrad as your business goes under!

Ps. We have more to come, jobs will be going next and that is when it really gets messy!

homer_j_3

Going to work for a bank is not selling your soul - now you are becoming a drama queen.

Going to a bank is a challenge of not being able to offer consumer choice but other than that it is the same job.

I have heard that some banks are reviewing staffing levels - especially in mortgage areas because of the decrease in lending. The 45% decrease in net lending will surely have bearing on the number of people that sell and administer them.

payless

I've never really understood the reason for brokers seeking to operate in what I would broadly term the 'Middle class sector'.

Its the sector I've always worked in ( High % of my clients are medical staff, teachers, university lecturers , civil servants with splash of city workers and also some manual workers as well) going to be tough but those "Middle England" clients still need advice - its just we need to be a little different to our approach whilst dual pricing/ crunch is on.