View more on these topics

Brokers are not driven by proc fees and long-term deals aren’t best for clients

I must take issue with Mike Lazenby’s comments in your March 24 issue. Would he like to substantiate his outrageous comments that brokers are driven by commission so it’s not in their interests to sell 25-year products and that the majority of mortgages sold by them are not necessarily the best deals?

Unlike Lazenby, most brokers including myself are self-employed. It’s in our interests to have happy customers who return in the future and recommend us to others.

Brokers work hard for their clients by providing the best deals while handling lenders’ bureaucracy. Unhappy customers do not return.

Many borrowers think they want 25year fixed rate deals but when we explain about portability and early repayment charges, their viewpoint shifts and most opt for shorter term products.

We do not do this to earn more commission – it’s in our clients’ best interests to understand the consequences of what they’re about to enter into.

We offer a good deal to clients and work hard for our money. We don’t charge the earth and we’ll recommend the best deals for them regardless of commission. Indeed, I’ve done many deals where the proc fee was zero but I went ahead because the mortgage products were head and shoulders above the alternatives. Lazenby should change the circle of brokers he mixes with, although there won’t be that many willing to break bread with him after these comments.

Sean Horton
Enhanced Wealth


Society man who relishes insights from seats of power

As chief executive of Yorkshire Building Society and chairman of the Building Societies Association, Iain Cornish is dealing with the credit crisis at both an operational level and as a lobbyist looking to safeguard the interests of lenders and of the mutuals in particular

Crown unveils commercial risk assessment service

Crown Mortgage Management has launched a commercial risk assessment service for lenders and investors that want to im-prove their understanding of the risk profiles of their commercial mortgage portfolios.

Mortgage Next unveils prime 90% LTV deal from Kensington

Mortgage Next Packaging is launching a prime self-cert mortgage available to 90% LTV.The deal is available for two-years fixed at 7.25%, three-years fixed at 7.15% and a two-year tracker at 7.24% or 1.99% above base rate.Borrowers are able to overpay, underpay, take a payment holiday and also borrow back against the deal however they are […]

Benefits - thumbnail

Global benefits predictions for 2015 from Jelf International

According to Doug Rice, managing director of international services, in 2015, managing their international duty of care will become an increasing focus for UK-based overseas organisations in both managing their short- and longer-term challenges. As a result, strong independent advice and innovative technological solutions will become more important than ever in managing their global benefits.


News and expert analysis straight to your inbox

Sign up