Case Study needed for ITV1 Tonight program on the UK Mortgage Market

MSE_Martin

Hi

Just for the brokers out there - on the issues of lenders pulling out of broker market (or offering specific deals direct) i think this is a very poor thing for the consumer - as the 'one stop broker shop' model which makes things easier is being hit.

In my notes to the producers this is one of the things I highlighted I wanted to include... however ultimately that isn't my decision - i don't do the final cut.

I know a couple of very respected brokers who've taken the industry to task on this and in my notes I've asked that we interview them.

The problem with this for the brokerage industry though... is that its a double edged sword. HIghlighting it will show the problem - but equally it will show that there are now many products that are non-broker products and have to be gone direct... it's dunstonh's double edged sword again!

martin

payless

MSE_Martin wrote: »

Hi

Just for the brokers out there - on the issues of lenders pulling out of broker market (or offering specific deals direct) i think this is a very poor thing for the consumer - as the 'one stop broker shop' model which makes things easier is being hit.


martin

time to tweak those articles accordingly ? Highlight not to just use (fee free) brokers who aren't telling about direct deals .( commission is still a cost of advice - so if paying get proper advice for your "payment" ) ..... and those cashback sites- surely as bad as you can get ( get £200 back, on a deal that costs you £1500 more than direct ???)

http://forums.moneysavingexpert.com/showthread.html?t=880695

You accept that consumers generally need advice , which means brokers need to stay in business , but business models of brokers need to change to meet the changing situation, as does consumers outlook on advice ( no such thing as a free lunch)

Kez100

MortgageMamma wrote: »

I think we should all keep an open mind on this until its actually screened - its common sense that the programme makers should really be promoting the services of brokers during this difficult time.

Do brokers know what is available direct? If so, and they do advise to go direct if it is the best option then OK, I agree.

If they do not have access to direct deal details or do not pass clients to direct sources when it is in their best interest, then they shouldn't be promoted IMO.

payless

Do brokers know what is available direct? If so, and they do advise to go direct if it is the best option then OK, I agree.

If they do not have access to direct deal details or do not pass clients to direct sources when it is in their best interest, then they shouldn't be promoted IMO

.

Yes we do.. if we are willing to look

( much harder to do this real "whole of market" research though- as the sites that show most direct deals don't always show every deal + need double checking all the time- not as up todate as the professional systems which we still pay for! )

Been over 2 months since I fully processed a case .. but "sent" many millions of pounds worth direct in that time.

MortgageMamma

Some brokers will include the direct deals Kez and some wont. Personally I do, but if I continue to do that without charging an upfront fee then pretty soon I will be bankrupt. There have always been lenders that dont deal through brokers but the problem we have is that lots of lenders who have historically dealt through brokers are now either not doing so at all, or are doing so on less favourable terms than if a customer went to them direct. We are annoyed about this for a number of reasons, of course there is some self interest and its not ALL about the consumer, but its unfair on a consumer to be lured into an unadvised sale or to take a product or solution which isnt as suited to their needs as another lender may offer.

The Financial Services Authority are a national disgrace. They are compromising consumers financial wellbeing on a large scale by refusing to address this issue. Many brokers, myself included do not want to go down a fee charging route as it excludes the most needy from obtaining suitable advice - thus making them even more vunerable. There has been a suggestion that there is a cartel operating between specific lenders with the pure intention of taking advantage of current economic conditions to push brokers out of the market. Its not been proven but if it is the case it will all come out in the wash eventually.

Its sites like this that need to highlight unfair practices to consumers and help them navigate the nets of the unscrupulous lenders. I am a driven individual and I will fight this and continually publicly question the financial services authority and lenders to find out what the real motives are. You must bear in mind that the broker market pay fees to the FSA every year to remain authorised. This year the FSA treated themselves to a 14M bonus which worked out to be almost 5k per staff member. It makes me absolutely sick - I really do think they are corrupt!

MSE_Martin

time to tweak those articles accordingly ? Highlight not to just use (fee free) brokers who aren't telling about direct deals .( commission is still a cost of advice - so if paying get proper advice for your "payment" ) ..... and those cashback sites- surely as bad as you can get ( get £200 back, on a deal that costs you £1500 more than direct ???)

I actually rewrote the article ten days ago... there's a fact check process going on right now.

The problem with your suggestion is that there's no guarantee that paying a fee means the direct deals will be included. So the key to the guide is doing it yourself.


My plan (once i'm back from holiday - and I really shouldn't be doing this now) is to publish the new guide just for the forum first... as I know brokers like to have their say and feedback. I will read the feedback and constructive critque and see if i think any changes need making before replacing the current guide and going large in the email with thenew one.

Martin

Ian_Griffiths_Halifax

MSE_Martin wrote: »

I actually rewrote the article ten days ago... there's a fact check process going on right now.

Martin

Is there a typo there? Should that say fat cheque?

homer_j_3

why would it say fat cheque?

Ian_Griffiths_Halifax

I'm sure Martin isn't doing the programme for free :rolleyes:

MortgageMamma

Whats your problem Ian, Martin needs to make a living just like the rest of us. Do you do all your work for free? I'm sick to death of hearing ML constantly slagged off on various forums. He's doing his job to the best of his ability like the rest of us - and he's doing what HE FEELS is the right thing by consumers. I don't agree with Martin Lewis on absolutely everything, but you have to remember he is working to educate consumers to be more savvy - not to make sure the pockets of mortgage brokers are lined. The man is on HOLIDAY and still taking note of serious issues for gods sake, what more do you want from him BLOOD?

I suggest if you are going to make derrogatory comments about a man who so far mostly done the public a good service, you should question why you are doing it? what purpose it will serve? why you begrudge him earning a living? and why are you calling into question his integrity as an individual?

And you really shouldnt have the bare faced cheek to plaster them all over HIS website.:mad: I'm sure you wouldn't like it.