One of the debates on Mortgage Strategy Online last week was how the future would be with brokers charging a fee for advice instead of a proc fee.
In my experience borrowers are usually mortgaged to the hilt and are likely to be unable to pay a reasonable fee to get advice, thus throwing themselves into the arms of lenders.
I have found that unless the relationship between fees and interest rates is pointed out, they do not make the connection and end up paying more.
What people forget is that we only get paid for procuring business for lenders. They don’t pay us a retainer, pension, car allowance or salary.
We do all the work, explain the products, obtain references and proof of income and package the finished application.
We are a cheap way of them doing business but they have eyes on general insurance products.
If we can’t save the public from them, the banks will have a field day with dearer mortgages and insurance premiums because we won’t be there promoting competition.