Is this normal for brokers?

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Comments

  • beecher
    beecher Posts: 2,497 Forumite
    koexelek wrote: »
    He would no doubt get struck off if the FSA found out about it, as it is out and out fraud

    Good - I hope he does. Must be frustrating hearing these stories when you don't operate that way. Does make it hard for people to know who to trust though - I'd rather do it all myself.
  • feisty1
    feisty1 Posts: 1,487 Forumite
    koexelek wrote: »
    I'm always scared to death of doing anything wrong, :confused:

    If advisers are working compliantly, they shouldn't even have the "scared to death" fear............
  • spuds_2
    spuds_2 Posts: 874 Forumite
    How much do brokers get if they arrange a mortgage? Is it based on the amount borrowed or does it vary from bank to bank?

    The reason I ask is that in that BBC repossession programme the other week, one of those going under was a financial advisor - he was waiting on a commmission cheque for £3,000, which I thought seemed a lot. Could have been a few deals from the same lender I guess.
  • Ian_Griffiths_Halifax
    Ian_Griffiths_Halifax Posts: 1,690 Forumite
    spuds wrote: »
    How much do brokers get if they arrange a mortgage? Is it based on the amount borrowed or does it vary from bank to bank?

    The reason I ask is that in that BBC repossession programme the other week, one of those going under was a financial advisor - he was waiting on a commmission cheque for £3,000, which I thought seemed a lot. Could have been a few deals from the same lender I guess.

    It varies from lender to lender, but approx 0.25 to 0.3% of the advance. So a £30,000 mortgage at 0.3% paying £90 isn't even going to pay the phone bill. That's why sometimes you need to charge.

    A £300,000 mortgage at £900 however is a different story.
    I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.
  • feisty1
    feisty1 Posts: 1,487 Forumite
    open & honest.........i have written a 450k mortgage today a proc fee of £1,485.00 ..........& i deserve every penny as I have worked very hard for this business........& it was an existing client which proves to me I must be doing something right..............
  • Ian_Griffiths_Halifax
    Ian_Griffiths_Halifax Posts: 1,690 Forumite
    feisty1 wrote: »
    open & honest.........i have written a 450k mortgage today a proc fee of £1,485.00 ..........& i deserve every penny as I have worked very hard for this business........& it was an existing client which proves to me I must be doing something right..............

    I bet you didn't charge a fee on top though like many would.
    I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.
  • feisty1
    feisty1 Posts: 1,487 Forumite
    no i didn't and i never have charged this particular client any fees as he is one of my HNW clients........but then i wrote a 57k A&L on mon night, 100 miles round trip & i think proc fee 200.00 no client fee.......i have always tried hard to provide a good service and from that I rcv referrals..... i am holding my head above water during these difficult times then.. I see other advisers with 30yrs experience struggling and I ask where's yr client bank, where's yr referrals......they're unable (or won't) change, upskill, diversify, utilise all their qualifications and have never bothered to service clients properly, their IT skills probably lend to Trigold & this site....no idea how to mail merge for newsletters etc, they just sit & moan and talk of the glory days!
  • dunstonh
    dunstonh Posts: 116,288 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    feisty1 wrote: »
    If advisers are working compliantly, they shouldn't even have the "scared to death" fear............

    Its always worth keeping a healthy fear of the regulator. Keeps you on your toes.

    However, if you are compliant and interact with the FSA rather than be arrogant and obtuse then you will find they are fine to get on with as well.

    That said, I know a firm that had an FSA inspection last year and the 3 sent out to inspect the firm had no FPC/Cemap qualifications, no idea of what was involved in running a firm and costs involved and really didnt undertand the difference in many of the products available. That doesnt inspire confidence.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ashleyk
    ashleyk Posts: 68 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    I had a nasty shock 1 hour ago when I received a letter from the Halifax saying that the mortgage had been confirmed and fixed at that rate. Moreover, they had already debited the £1499 product fee. I find the behaviour of this broker absolutely outrageous since he had autonomously decided to fix that rate and committed me to spending the £1499.

    This is now being passed to a different department at the Halifax but since this broker cancelled my deal I will now have to go through another mortgage review and set it all up again next week. Hopefully that will all go smoothly.

    Following this I called the broker's company owner, having luckily found his mobile number and he was extremely apologetic saying he will look into it and get back to me later today, so I am waiting for his call. He understands that without my authorisation the broker never should have got involved but in any case he said that he would be holding off rather than confirming now since rates are likely to go slightly lower in February. That's exactly why I had reserved the deal but not yet confirmed it... Even the Halifax were saying that was a sensible strategy.

    Now I shall just wait a while to see what happens but I am really quite speechless at what has gone on.
  • koexelek
    koexelek Posts: 7,847 Forumite
    Ian_Griffiths_Halifax wrote: »
    It varies from lender to lender, but approx 0.25 to 0.3% of the advance. So a £30,000 mortgage at 0.3% paying £90 isn't even going to pay the phone bill. That's why sometimes you need to charge.

    A £300,000 mortgage at £900 however is a different story.

    But of course, the same amount of research and paperwork is needed in both instances :rolleyes:
    I am a Mortgage adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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