You are here: Home - Your Community - Top Comments -

Star Letter Extra 28/06/13

by:
  • 28/06/2013
  • 0
Each Friday, Mortgage Solutions takes a look back at the best reader comments on the website.

Broker shoots video in bid for viral-referrals

Looks like it has already been taken off – we looked at the concept but too be honest with all the regulated statements and compliance hoops we had to jump through we gave up – the FCA like catching the sprats but let the big fish get away – Wonga know who I am talking about?

Not a Fan

Interest rate rise of 2% could cause ‘significant distress’ – BoE

I think a rise of even 1% would cause some distress, particularly to first time borrowers who have bought over the last three years and have yet experience any base rate movements.

In the good old days base rates moved by a quarter of a percent every other month or so, unlike todays stable rate period. It will come as a shock for those on a tracker to suddenly have to pay more for exactly the same thing they had yesterday.

However, to counter that we now have a more savvy broker community who have had ‘affordability’ and ‘payment shock’ warnings rammed into their brains for the past few years and so you would hope the message of future rate hikes will have been passed on to unwitting borrowers.

Many brokers have been using the very cheap longer term fixes recently which have been artificially subsidised by the Funding for Lending initiative, but even those borrowers enjoying a long period of insulation from rate hikes will eventually emerge into an economy in which new borrowing will almost certainly be more expensive.

Andy Wilson

What does the future hold for proc fees?

Mr Adams makes some common sense points, but I feel he’s mugging himself off! As a small broker who relies on procuration fees and a fee for his advice, it’s important that mortgage advisers keep hold to as many revenue streams as possible and respect their worth, instead of rolling over as some sort of ‘cuckold’ as Mr Adams referred to.

Maybe he’s more of ‘the accepting type’…

After 13 years, of what feeling like a moving target, serpentine-ing through no man’s land, in regulation and changing lending policies. I feel brokers deserve every penny we get. I’m not prepared to roll over Mr Adams! Have some self-respect!!

Tom Hughes

What does the future hold for proc fees?

I have to agree with Mr Hughes and to back this there are comments from Mr Adams that are also true. “Lenders want good quality business that doesn’t require too much additional legwork” and “ever-more onerous requirements around affordability assessments and income verification.”

It is right that checks should be in place to ensure responsible affordable lending, but lenders’ often strange criteria doesn’t help.

Lenders seem to be mopping up the low risk easily place able clients without the worry of having to provide the best mortgage and prove the advice as an adviser does and leave the clients who have trouble with “ever-onerous requirements” to the advisers.

Nowadays, the work of a good adviser is very hard. Having convinced a client that with their years of experience and knowledge they can identify the correct mortgage for the client better than the client can themselves with ten minutes on their laptop, they then have long hours spent fighting through the maze of lending criteria and requirements to get a mortgage accepted.

Advisers do deserve every penny they earn, there needs to be a move towards treating advisers fairly.

Derek Compton

What does the future hold for proc fees?

Thanks Derek. This article appears to indicate that lenders could be expecting their cases delivered to them on a plate… for nothing….!

This with all the onerous hours of scanning, certifying and loading into lenders IT systems, proc fees should be on the UP.

Or have I missed a trick? Should I be contacting Leadbay and some other lead providers to ask for free leads…?

Tom Hughes

Thank you for your comments this week.

There are 0 Comment(s)

You may also be interested in