From Lee Martin
I am writing in response to a recent article by Kevin Paterson headlined ‘Brokers, don’t sell yourselves short’ (Mortgage Strategy December 11).
I agree wholeheartedly with him and the sentiments he puts forward in the article. All brokers should charge fees to clients. End of story.
We do a great job for our clients, we put a hell of a lot of effort into our work and we should be brave enough to charge a commercially responsible fee for our services.
Those brokers who don’t charge fees can make all the excuses they want but it’s because they are too scared to tell their clients how much it costs to use their services. I bet solicitors are not too bothered when they are putting their fee notes together. Neither should we be.
Of course, it all depends on how well you market yourself in the first place. For example, my company charges all new clients 1% of the mortgage ad-vance on offer, irrespective of whether they go through with the mortgage.
Then, as existing clients, they enjoy my services fee-free forever more – guaranteed.
Because of this, 78% of my fee income in the past 12 months has been generated by existing clients looking for remortgages, extra life cover or critical illness cover or whatever, which as any good broker will tell you means less cost in advertising for new business and easier business to write.
To those brokers trying to survive on proc fees alone, good luck but think about this – a client wants a 100,000 re-mortgage and goes to Abbey on its flexible plus deal. You will have to do 17 of these to earn what my company earns from five.
You can be as good as the next man but if your company is no longer in business, what’s the point?
Regency Mortgage Bureau