why you should REALLY support brokers

MortgageMamma

Hi All. Following a thread I've just read about saving the mortgage brokers (which I thought was quite aptly put as we are an endangered species at the moment) I thought I would use something I read earlier on another forum (www.cherryplc.co.uk )to highlight what brokers do, and the real value brokers put into transactions. I know there will always be cynics, and people who, unfortunately have had bad experiences with brokers, but the majority of brokers are dependable individuals with a great deal of honesty and integrity.

Read on to find out what we really do - and I hope Martin Lewis will consider reinforcing this message by sending it out in his weekly emails. Please help the consumers help themselves Martin. They need our advice more than ever right now.

Millions HELPED by mortgage professionals!!!!!!

Lest anyone forgets.....

WHAT BROKERS DO IS MASSIVELY VALUABLE!!! So.... we thought we'd shout about it a bit!!! This email will be distributed to lenders as well as intermediaries. Perhaps there will be people you wish to pass it on to?


The role of the Mortgage Adviser extends way beyond the actual setting up of the mortgage. In fact, they are absolutely integral to the home buying process.

A reminder of just what they do

• In the very first instance, they help the client determine what is and is not affordable
• They also help the clients understanding of the buying process and in many cases explain the terms used
• They provide names of trusted and used professionals such as solicitors
• They help clients decide on a suitable mortgage given their specific circumstances. The decision is based on the facts they take the trouble to gather
• They recommend a suitable company and provide reasons for that recommendation making sure that the client fully understands what they are getting involved in
• They provide illustrations showing ALL costs involved in the buying process and make sure that the client has the funds to pay these costs
• They help the client complete the formal paperwork for the mortgage
• They gather all the relevant information that the lender needs to support the application
• They help the client understand all the forms provided to them by the solicitor, lender, surveyor etc.
• They liaise between all the interested parties making sure that everything is going well
• They keep the client informed of the progress of the mortgage and deal with any questions or concerns the client may have
• They help the client understand the formal offer issued by the lender and make sure they understand what they are getting into
• They make sure families can continue living in their homes should one of the mortgage holders become sick or be made redundant

In fact.... what they REALLY do is....

Communicate with everybody in the purchase process

Advise on the most suitable scheme based on the client’s requirements

Remind about all the risks invloved in carrying out the transaction

Ensure the family is protected should anything unforseen happen



HELP US TO HELP YOU. THERE ARE WIDER ISSUES TO CONSIDER OTHER THAN SAVING £5 A MONTH ON YOUR MORTGAGE HERE. DON'T COMPROMISE ON YOUR FINANCIAL PLANNING, ONE WRONG MOVE AND YOU COULD BE LIVING ON A KNIFE EDGE IN TODAYS CLIMATE OF FALLING HOUSE PRICES AND RISING INFLATION.

Dan_Collins_2

Thing is, if the banks dont want our business we have no hope! Whatever you say people will go with whatever leaves them with the most cash! Its like trying to tell a client not to go with NU for a life and cic for the sake of £10 and get far better cover. What do they do??? NU!!

MortgageMamma

Not always Dan. Don't underestimate the intelligence or the mentality of the British population. If they are presented with the facts, and educated in a consumer friendly, unbiased way about the levels of advice available to them via various channels, and the advantages and disadvantages of such advice, then I would put money on the fact most of them would choose the broker advice route - the problem is, most consumers dont know the difference between going through the bank/internet/phone and taking professional indemnified advice.

I am currently campaigning the Financial Services Authority to put a document together for the consumer which explains ALL the advice options open to them, and the advantages and disadvantages of each. This was what the initial disclosure document was originally intended for but it didnt quite get the point across.

I am also campaigning for the term "whole of market" to be rectified to take into account the consumers understanding of the term, as I believe its misleading.

existentialist

Fearful of the future are you?

AndyBlack_2

Hi,

I have already mentioned about my new service for mortgage brokers in a previous post. It's being launched shortly, and if any of you brokers are interested in getting unlimted leads for a one off fixed cost then pm me.

I don't mean for my post to sound spammy as that is not my intention. It's just that I think this new service could really benefit you guys with regards to gaining business.

Let me know if you're interested.

Andy

Kez100

The problem is not that everyone thinks you are not worth doing business with but because no one is buying homes or remortgaging unless they have too. You can shout about caring from the roof tops but until more people want a mortgage, business will be quiet.

For example I am on a full term, no penalty, BOE + 0.69 tracker and could have been sat waiting for a decent, long term, cheap fee fixed rate deal. It's just not happening is it?

Also, your final paragraph about brokers helping people to not live on a knife edge. Really? Did brokers in the past few years refuse to place self-cert, 100% and 100%+ mortgages?

homer_j_3

The way I see it.

WOM and IDDs will not help the mortgage broker at the moment. Yes I believe that there needs to be changes in the areas of what you have identified but this is where the broker is being choked.

Net lending figures of £110bn have been around for the last 2 years. This equates (without seasonal trends) to over £9bn a month being lent. Now there are quotes saying this year there will be roughly £60bn of net lending or £5bn per month.

So last year when Bank A was lending their share of the £9bn, their business would have come from the branches/direct route or intermediaries. Depending on the bank, the % split from each route would be different.

Now the banks are seeing this £9bn a month reducing to approx £5bn, they are reviewing these % and costs. Clearly the banks have fixed costs with branches and staff so they are seeing that they can shift their money through here in the main. Brokers are not their priority.

To keep their costs and profit levels in the right place, they are making the lending more expensive to compensate.

Even if the client understood ALL the benefits of using a broker, I cannot see how a broker could truly deliver those benefits in todays marketplace.

Anyway, there will be many good advisers lost or put out to graze whilst things sort themselves out.

I wish we had let the EU people put their no commission policy in place. It would have forced change to where the advice route needs to be.

ixwood

. Spammy.

homer_j_3

Lead generation companies are all the same in terms of the hook people in and although they put warnings up for people saying "this is what you are doing and the consequences of this are" - people do not read them.

I would applaud the day that one came along and said, for £50 we will get you an appointment which will sit. You do not pay until your appointment has confirmed and you will get a refund if they cancel.

No one does it - because the returns do not work. You would have to pay more like £500 because the lead costs of all the no's they go through.

I could imagine the lead companies being hit very shortly as they continue to produce less than adequate results.

cells

MortgageMamma wrote: »

Lest anyone forgets.....

WHAT BROKERS DO IS MASSIVELY VALUABLE!!!

IF TRUE you need not worry, but as i suspect it isnt really true and a lot of you will be broke soon

cells

the milkman went the same way