UK Landlord Forum / Life

I was listening to the radio last night. One of the chat subjects was the banks. An industry professional came on the air and said 'The mortgage brokers are specialists and irreplaceable'. They deserve bonuses they were promised as they work in a specialised field. I am very sorry but I have found and I am sure I am not the only one either, that I know more about the mortgages I am being offered than the broker in the bank. I could, with a couple of days training on how to operate the computer and the coffee machine, walk into that job. They read what it says on the computer screen and often when asked the questions that experience tells me I should be asking, have not got a clue. One chap I spoke to had to leave the room several times to ask colleages. I am sorry but I am asking general, sensible, relavent and obvious things. They only know very specific fields too. A couple of years ago I spent over an hour advising the mortgage broker from the Halifax about BTL mortgages. She hadnt a clue, it wasnt her field. She did not know about home insurance or commercial loans either. How the hell is that specialised. Ahh but it is. If you only know one thing and naff all else then you are a specialist in that role. Dammit, what ever happened to apprentices working within each department before moving into their chosen one? My Father worked for the Nat West in the early 70's. He was a key holder for numerous branches and could step into any role to cover holidays. He did find it stressful, it was all hand written back then, but where the hell have these people gone? He even did the property valuations for the mortgages himself! The staff in branch today are a buch of desk monkeys who could just as easily be selling you car insurance.
Seriously, you have a mortgage. What did they do that was complex? How long would it take you to learn their specialist role?

I completely agree with you even I had bad experience with two mortgage brokers:(

OK
I have been looking into this. Maybe a bit extreme but to prove that any dick can do it I have been looking into enrolling onto a CEMAP course so I can be a broker. Its as little as about £500 and can take as little as 3 months to qualify. I am sorry but that is not the 7 years of struggle that would create a specialist. Any dick can do it!

Jeffo, not sure whether you are serious or just playing devils advocate.  However, I do agree that there is confusion among the public as to who does what in financial/mortgage services.

I am a financial adviser/mortgage broker and I would like to point out a some facts.

The mortgage staff who work in banks are not Mortgage Brokers, they will be called mortgage advisers or whatever.  They do not and cannot broker the mortgage market to find you the best deal.  All they are permitted to do is to sell you a product from their bank, which may or may not be the best deal for you.

I have to agree that the service they provide, in common with many services that banks provide is generally shocking.  Many times I have had buyers come to me in total confusion about what they have been offered.  In one case, they were offered a deal which was over £6,000 more expensive than one that I had brokered for them from the same bank!  (large well known high street name with yorkshire connections).

Why do people go to banks?  Banks exist to make as much money from you as possible, end of.  You need to find a good self-employed mortgage broker who does not charge upfront fees and is transparent in all his dealings.  My clients know exactly where they stand, there are no surprises.  Being self-employed, I have to do my best or else I earn nothing.  These 'advisers' (remember, they are not Brokers)in the bank earn their money whether they do a good job or not, where is their incentive?

I will say that if you think the job is as straightforward as you appear to think it is, come on board. I think you will be very surprised. Its an industry that is haemoragging brokers because it is very difficult to get lenders to lend to anyone who doesn't quite fit the 'ordinary' mould.  This is where a good broker with knowledge and experience comes into his own.

Like all things people look to save money, this is possibly why they go direct to the bank, as they do not charge broker fees.  How could they? They are not brokers.  In the end you get what you pay for, just dont expect any knowledge from the banks as you are not paying for it upfront, but you may pay dearly long term.  For the sake of a few hundred quid brokers fee, isn't it worth employing a good broker, because yes, they are specialists.

Hope this clears things up a little.

I am mostly serious with a large chunk of sarcasm and hopefully a whisp of humour.
I went to the Halifax for several reasons. One reason being that I was desperate to get out of a bad deal with HBOS and rightly thought if it was kept 'inhouse' and things went wrong I would not have to carry the financial can. It did go wrong. I told Halifax I wasnt paying Bank of Scotlands late fees and they would have to deal with it. Saved me £1360. The second reason I went to them is that the price comparison websites put them at the top for costs. The last reason is that they were offering good terms when compared to others. Having been previously underwhelmed by brokers I thought I could do just as well going it alone.
I am seriously considering a CEMAP as I am broke and need a career and would you believe it- I like mortgages! Strange I know but somebody has to like sitting with a calculator. I realise that it seems the most crazy thing to do with what must be more than 50% of the UK brokers finding themselves on the street. Crazy but.... Give it a few years and there will be a shortage of them.

Dont you ever say to yourself, 'I could do better than that' when you have had poor service? I do all the time. Just I dont want to work in a little chef or B&Q.

I am happy to listen to any advice or pointers. I may change my mind again. (I am half female!  ) Thank you

I am very sorry to hear you have died.

Apparently there is a new way to get independent mortgage advice without going through a broker. Which? have decided to start offering impartial advice to all their members, they'll even give you all the commission they receive. For around £10 a month, the membership fees do add up, but probably cheaper - especially if the a commission cheque comes through your door.

http://www.guardian.co.uk/money/2010/nov/20/which-free-mortgage-advice

Had a good read of that. 120 quid is a lot of money but when you stop and think about it..... The broker wants me to pay him 500 as his fee. If I want 2 mortgages thats a grand. Hell, 120 quid is a bargain after all.