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Does anyone know any brokers who offer part of their commission as cashback to the client for taking out a mortgage?
if you're as old as me (unlikely) you may remember a comedy programme in the 70's called "Never mind the quality, feel the width". The programme was about a tailor and the inference from the programme title was that you shouldn't worry about the quality. And so it is with many things in life. Do you buy your clothes from a budget retailer, or would you like to wear better clothes that fit and feel good? Do you want to buy cheap poor quality food that is filling but not necessary nourishing and tasty? I also remember the Volkswagen advert where someone who happily buys a budget Parachute and gets a free gift when doing so.
The same thing applies when looking for financial advice. You get what you pay for. A good broker does not look at themselves as Salesmen or women. They are advisers, taking pride in giving the right advice. Is your existing broker someone who frequently pushes you (or makes the argument) for a 2 year fixed rate? Are they looking to churn you every two years to keep their income rolling in, rather than recommending a 5 year fix if that's what you want or need? Do you ask your broker about their spread of lenders available? I used to work for a well known estate agency. Under the rules at the time they were entitled to call themselves "Independent" but only actually had a panel of 11 lenders, only two of which were BTL related.
I have been a Mortgage Adviser for 17 years. Prior to my current position, my product mix was about 35% BTL and 65% residential. I thought that I knew the BTL market pretty well, but once I started working in a dedicated BTL brokerage, I realised that I didn't know as much as I thought I knew! The company that I currently work for has been trading for 26 years and are specialist where BTL advising is concerned - we do not seek out residential business, but it makes up no more than about 5 % of our mortgage business - the rest being BTL, either personally held property or by a Ltd Co.
So you do get what you pay for. You use specialists for other aspects of your property purchase, eg solicitors and surveyors - a good broker is on a par with these professionals. If you want a professional service, pay for a professional to give you that service.
BTL's, residential mortgages, bridging, life cover and estate planning
For Commercial Finance, complex BTL and HMO funding, development finance, international and expat mortgages, and portfolio BTL mortgage services Assured Funding website.
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So essentially you are looking for a broker who will pay you to use their service ???
No, just to share the considerable commission they will receive as a result of my business!
Do you find that odd?
Not something I am familiar with brokers, but I would be interested to find out more.
On the one hand, there might be a sense that the broker is either desperate or feels his services do not justify the commission they get hence they are sharing it with you.
However, it is also true that I have had business relationships where there is a concept of profit sharing - where savings and efficiencies found are shared.
Out of interest, how much is the mortgage for, is it BTL or Residential?
Yes, I certainly do find it odd (and greedy).
I have no vested interest as I'm not a broker, but I do hope no broker capitulates to this.
If someone does a good job for me, I don't begrudge them earning a living from it.
Do you also ask your gardener/plumber/car mechanic to give you back some of what you pay them in exchange for "gaining your business"?
The considerable commission referred to dates back to endowment mortgages and the commission payable on the endowment policy. I think you will find that the money earned from mortgages is less than you think and brokers’ expenses as a result of regulation and the resultant workload have increased significantly.
In my view the best you are likely to achieve is not having to pay an additional fee to what the broker receives from the lender.
Hi Sharma, we dont offer it ourself but, you can typically find the brokers that offer cashback at food banks. They will be easy to find, you'll notice them as they are desperate for your business as no one values that broker or what he does. Be careful! there will be a reason for it.
_________________________________________________________________________My posts are not financial advice but often me rambling - passing time on a coffee break.Our team at Bespoke Finance offers Limited Company Buy-to-Let and Cheap Life Insurance._________________________________________________________________________
Firstly don’t listen to all the vested interest brokers on here there is absolutley no need to pay a broker to fund a mortgage they all get paid by the lenders anyway - and yes you can get paid to do it here’s how
do your research find the right mortgage by talking to brokers - research online
(*Moderator note: Rest of comment removed as against our T & C's*).
Thank you and well said!
Quite a few condescending, sarcastic and frankly baffling comments posted above.