Mortgage Advisors/Brokers and their "Fee's"

[Dizeee]

hadenough! said:

Quite, have you checked what your repayments will be when interest rates go up?

When they go up?

If they go up.

Yes we have a margin of error. Our childcare cost of 900 a month halves in Sept, thanks to Cameron. That is money we are burning at the moment but it's only until kids reach 3 years old. Our eldest is 3 in June.

Interest rates can rise, we can take the hit. Less so at the moment. Fast forward 2 years and our smallest child is also free at nursery. So it's all very temporary cost. We're going to be around 1k a month better off in 2017 - forever. Any interest rate rise by then would have to be so significant that it sinks the country, which is impossible.

[Adam B]

Sarnie said:

Aquarius909 said:

On a related matter - and I don't mean to ask an impertinent question here - but I actually winder to myself how mortgage brokers who DON'T charge a fee ever make money. They get a "proc fee" from the lender of about 0.3-0.4% so on a £200,000 mortgage they'll get no more than about £800. When you consider all the ball-ache that goes into some mortgages - many of which end up going nowhere - I don't see how they can do enough to pay the bills. Clearly they are but I'm just missing the business model. Is it in the ancillary sales of protection and the like?

I don't mean to be impertinent but @Sarnie if you would like to comment I'd be curious to know.

Indeed. And the net figure is much closer to 0.3% these days, although I remember the 2% subprime self-cert days!!

I thought RDR banned advisors receiving commission from product manufacturers, so they had to charge client directly, and transparently?

[Sarnie]

Adam B said:

I thought RDR banned advisors receiving commission from product manufacturers, so they had to charge client directly, and transparently?

RDR does not currently extend to the mortgage industry but it is being talked about....

[Dizeee]

Sarnie, just to let you know, we should be signing our mortgage stuff on Monday next week, but if there are any issues I will get in touch with you. My email issue is now fixed on here too

[Adam B]

Sarnie said:

DR does not currently extend to the mortgage industry but it is being talked about....

gotcha thanks - strange as one of the most open to abuse, and most retail in nature

Edited by Adam B on Thursday 28th May 18:36