why you should REALLY support brokers

druss

As broker rage points out regulation is strangling the uk in all walks of life, the FSA are answerable to no one it seems. They want to regulate mortgage brokers in the same way they do IFA's but they have not realised that many brokers don't earn anywhere near what an IFA earns.

Many IFA's dont get involved in mortgages because they dont earn enough from them for the time and hassle that goes into them.

It also seems that unless someone like Martin and moneysaving expert.com go after the lenders they are quite happy to turn a blind eye to how the lenders operate.

WHY are loans and credit cards not regulated, they in my opinion ruin more peoples lives than mortgages do, I would say that people end up in trouble with their mortgage as often as not due to other credit they have obtained.

The lenders use bully boy tactics to keep them paying and they skip the mortgage payments to do it!

Graeme7777

Are secured loans regulated in the same way as mortgages as it seems that they are very similar products? (i.e. a loan secured by real estate)

druss

Graeme7777 wrote: »

Are secured loans regulated in the same way as mortgages as it seems that they are very similar products? (i.e. a loan secured by real estate)

They were not regulated until a couple of months ago whereas mortgage regulation started in 2003.

Are they regulated in the same way, not sure. I think they have now been told they have to evidence affordability etc.

But as they are primarily sold on the basis of no advice given they can get away with murder.

Long and short unless the person is advising and is responsibile for the advice they will sell sell sell.


Of all the compliants about payment protection insurance on loans, mortgages and secured loans being sold inappropriately (even to people who are not eligible to claim) the overwhelming majority came from lenders or direct sales forces of large compaines.

They make a fortune out of people who cant claim, so when a complaint lands about someone who cant claim they pay the compensation and keep selling.

If anyone is considering a secured loan, look at their insurances very carefully. They usually are much more expensive, the lender earns more off the insurance than they do the loan, you do not have to take it with them, shop around and most of all CHECK THE SMALL PRINT.

dunstonh

his question is for the advisors who were in the business the last time the UK housing market went south. Is the mortgage market in a better, similar or worse state now?

I was and was doing mortgages back then and can say it was far worse early to mid 90s than it is now.

As mentioned, the biggest issue we have is a media that loves scaremongering and sensationalising every thing. We also didnt do much remortgaging in those days. That started around that time.

Many IFA's dont get involved in mortgages because they dont earn enough from them for the time and hassle that goes into them.

Last one I did was just over 10 years now. I now employ a mortgage adviser to do mortgages. You cannot be an IFA and a mortgage adviser and expect your knowledge to be sufficient for both.

Graeme7777

Thanks Dunstonh - it's good to hear from someone with a longer perspective. (don't mean to make you sound old!)

BrokeRage

Very refreshing to hear an IFA saying that mortgages are a specialist area - constructive!

MortgageMamma

Who is this Druss chap??? Hey Druss, you seem to be taking words outta my mouth - I think you are an OK guy/girl. You are spot on with a lot of what you are saying.

druss

MortgageMamma wrote: »

Who is this Druss chap??? Hey Druss, you seem to be taking words outta my mouth - I think you are an OK guy/girl. You are spot on with a lot of what you are saying.

Thanks Mamma

My name is druss im an alchoholic,,,,, oops wrong forum.

Mortgage Broker of 15 years, worked for the estate agents for 7 of those then escaped!

Am looking closely at signs of the market and likely impact of changes unlike others who just keep repeating a mantra of its a cycle happens every 10 years were in for a beating. Bearing in mind it was 20 years ago the market dropped before, the circumstances were completly different so hows that a cycle.

Nothing like this has happened for over 60 years and no one is sure how it will affect the modern day society so it's good to discuss with other advisers and consumers.

Dan_Collins_2

druss wrote: »

Thanks Mamma

My name is druss im an alchoholic,,,,, oops wrong forum.

Mortgage Broker of 15 years, worked for the estate agents for 7 of those then escaped!

Am looking closely at signs of the market and likely impact of changes unlike others who just keep repeating a mantra of its a cycle happens every 10 years were in for a beating. Bearing in mind it was 20 years ago the market dropped before, the circumstances were completly different so hows that a cycle.

Nothing like this has happened for over 60 years and no one is sure how it will affect the modern day society so it's good to discuss with other advisers and consumers.

Very good point Druss.

I have been in FS for 9 years and I can remember slumps and slow periods but never anything like this. We have so many factors to consider. The housing market has been hammered with changes like HMO's, Hips and bad press. FS has been hit by the US investors getting greedy and bring the cash and problems to us. Inflation is going up up up and banks are telling us they have no liquid cash!

I feel more will come of this, maybe a another big bank to fall or even found out for cooking books etc!

Who knows! By then I should be out of this over rated and over controlled industry, finger crossed!!!

druss

Sorry to hear your looking to get out of the industry, regulation has a lot to answer for.

Dont get me wrong regulation in some shape or form needed to happen, there were too many things wrong within our industry.

The advisers who liked keeping customers stupid so they could sell what they want.

Mortgages into retirement etc

but

The regime that has come in has brought the sycophantic compliance people demanding large salaries and increasing costs for us all without neccessarily getting rid of those who abuse.

There must be a better way, one that allows the business model of a mortgage broker to be sustainable.