Impartial Advice & Fees
On the 31st of October 2004, the Financial Services Authority took over statutory regulation of the mortgage industry in order to ensure that lenders and intermediaries comply with good practices and fair principles. These principles are designed to ensure that borrowers get the best advice possible and fully understand the implications of the mortgage being arranged. The 'key words' in the above statement are 'BEST ADVICE'. We find it difficult to believe that best advice can be provided in the following circumstances;
- When the lender employs the advisor.
- A company, which is tied to a lender or panel of lenders; employs the advisor or that they have an agreement to place a specific quota of its business with specific lenders.
- The advisor offers a 'FEE-FREE' mortgage.
In the first two cases above, obviously the advisor is looking ONLY at a small section of the market place. In the third case, we question, "what is meant by FREE"? Obviously the advisor has to make a living, so from whom does he get his money? The answer is, the lender pays him a commission.
Now, we have no objection to lenders paying intermediaries commissions, but if that is the SOLE source of the advisor's income, how can a borrower be sure that the advice he receives on a mortgage is not just the advice that yields the highest return to the intermediary?
At Homesearch Mortgages we are totally impartial and place you, your satisfaction and security before all else. The cornerstone on which our business is built is our firm belief that the client is the most important and only consideration. We are not driven by any other factors except your complete satisfaction. We believe this is why the majority of our business is through ‘word of mouth’ recommendations by satisfied clients.
Because of our ethical commitment to you, the client, it does not matter to us if 'bank A' pays a bigger commission than 'bank B' or, indeed pays any commission at all. The product - the mortgage - that we will recommend will only be one that we firmly believe will suit your needs.
Perhaps your next question may be, where do we get our money? It is a reasonable question.
The answer is simple. We charge our clients a fee, payable at the outset. This way our impartiality is guaranteed. Sometimes, in addition, we get a commission from the lender. Regardless of the source of our income, you, the client, will be able to see accountability for every penny of YOUR money. We are ethically bound to do everything in our power to help you to understand every aspect related to your mortgage BEFORE you sign on that 'dotted line'.
How much should you expect to pay an intermediary for your mortgage? Some intermediaries charge a percentage - typically 0.5% - 1% of the mortgage - and others charge a flat fee. What do you expect him to do for you? At Homesearch Mortgages we believe in providing a service of the highest quality; are responsive to the needs of our clients; liaise with all parties involved and ACTIVELY assist in achieving the requirements of our clients. This is the type of service we believe you should expect to receive. Does your intermediary provide this level of service? If he does, then he deserves his fee. If he doesn't - he doesn't!
At Homesearch Mortgages, we guarantee to provide, at all times, THE BEST ADVICE . It’s why so many of our clients return to us time and again.
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