View more on these topics

Brokers are worth every penny they get these days

I am writing in response to Paul Lewis’ comment piece in the June 11 issue of Mortgage Strategy.

Lewis lacks understanding of what he is talking about when he tries to analyse the broker market.

I can cover many of his points by saying that the Financial Services Au-thority has set the rules and guidelines which regulate our market, and all brokers work within these. I take on board the fact that a miniscule percentage break the rules, but these firms get dealt with by the FSA.

With regard to the transparency of fees for customers, this point is well covered by the Initial Disclosure Document that has to be issued at all client meetings.

The IDD clearly sets out the broker’s remuneration package, be this in the form of a fee, commission from a lender, or both. This document represents a step brokers must take and in today’s intensively monitored world, I can’t believe that any brokers get away without issuing IDDs.

An IDD also covers whether or not a broker is whole of market, lim-ited panel or a single provider for in-surance. This being the case, I think any sensible consumer who sees that a broker only deals with one insurer would get their own quotations.

When Lewis talks about whole of market brokers not dealing with all lenders he is right, but the FSA allows brokers to be classified whole of market as long as they offer a fair representation of the whole market. If this rule is good enough for the regulator, it’s good enough for me.

When offering the most suitable products for my customers, commission is not a consideration. And I’d like to point out that the average compliance file verges on being two inches thick.

Given the time spent on research, visits, phone calls, paperwork and ultimately bearing full responsibility for product recommendations, brokers are worth every penny they earn.

Lewis should not patronise customers’ intelligence when it comes to whether or not they are getting a good deal, nor should he question the in-tegrity of our regulator.

Andrew Botte
Chase Evans Homeloans
South Wigston


Chelsea to launch green deal soon

Chelsea has revealed that it will shortly launch a green mortgage. The society is working on a green product but has yet to finalise how this will be underwritten. It is also talking to charity Energy Savings Trust about the possibility of giving clients free energy assessments.

Abacus Permanent appoints new head of sales

Abacus Permanent has appointed Gavin Treacy as its new head of sales.Treacy brings with him a wealth and depth of experience gained from 15 years in the mortgage industry working in areas including compliance, lending, distribution and also as a successful broker.His many area of responsibility will be continuing to expand and develop Abacus Permanent […]

Trustguard opens telesales office in Delhi

Trustguard has opened a Delhi telesales office, allowing three of its Indian staff members to move back home and be closer to their families.The office is staffed by a three-strong team headed by loan relationship manager Sameer Anand, who was previously based at Trustguard’s head office in Cardiff. It will sell secured loan products to […]

Employment fell in early 2007

The employment rate fell sharply in the three months to April this year. The number of people in work during that period was 29,01 million – down 10,000 over the quarter but up 87,000 compared with the same time last year.

Diversified cashflows are key

Dividends are under pressure in some areas: but reliable yields can still be found. So says Adrian Frost, manager of the Artemis Income Fund, in conversation with Lawrence Gosling.


News and expert analysis straight to your inbox

Sign up