Finance Articles

How Not To Be Ripped Off By Mortgage Brokers

One of the things that bothers me about the mortgage industry is the number of unscrupulous brokers that operate in this market.

Talk about giving the industry a bad name!

I worked for a mortgage lender until quite recently and I used to be shocked at the fees that brokers charged their clients. I mean lets put this whole "mortgage arranging" thing into perspective.

Assume I am meeting a client today. The guy walks into my office and sits down and has a chat with me about getting a mortgage.

It appears that he is not a "clean" client as he is suffering from a few credit problems. Well, I stroke my chin and let out a couple of sighs but wait, I CAN HELP HIM.

I tell the client that it is going to be difficult but I think I can help him. There may be a few "fees" but hey, at least he is going to get a mortgage and that is all he cares about isn't it?

So, he needs to borrow £150k. Because of ALL the work I am going to have do I am going to charge him a competitive fee of 3% of the loan amount. That's right, £4,500!.

But, he does have credit problems and he is going to get a mortgage and that is all he cares about right?

Oh, and the £4,500 doesn't have to be paid upfront because all we will do is add it onto the loan amount. So that's ok ,right?

NO,NO,NO.

Ok I am talking about a hypothetical situation but this is one that is repeated everyday throughout the UK. In my opinion it is nothing more than robbery and shows scant regard for the clients wellbeing.

How can anyone justify charging that to a client that will already have to pay a higher interest rate than a clean client would.

So, to recap, the £150k loan now becomes £154,500 and that is before you even get to the solicitor and arrangement fees, let alone the Mortgage Indemnity Premium (MIG.

So, the rule of thumb here is a simple one.

Ask your broker to justify their fees and if you find anyone charging a fee of more than 1%, walk away. Quickly.

Mark Anthony Harrison has worked in the Financial Services sector for over 16 years, many of them spent working for a mortgage lender and more recently with his own mortgage and finance brokerage. Visit him at http://www.capitalmortgagesolutions.co.uk

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Forex Managed Fund, An Investment Alternative
Fund Managers, Brokers, Investment Advisors and high net-worth investors looking for alternatives to the stock market and real estate to grow your portfolios may want to take a look at the Forex Market The Forex Market, also know as the Foreign Exchange or The Foreign Currency Market is a global electronic market 35 times larger than the NYSE with over $3 trillion a day in turn over

Taycasavillas Furnishing Customers With Perfect Property Investment Opportunity
Overseas Property Specialists Taycasavillas are giving away £7,500 worth of furniture to every customer purchasing one of their exclusive Dalaman Gardens apartments.

Countrywide Home Loans Assures Homeowners and Home Buyers That They Still Have Many Mortgage Loan Choices
100 percent loans still available to many qualified homeowners and buyers

Cover Your Monthly Mortgage With Mortgage Payment Protection
Getting behind on your mortgage could mean that the lender would take steps to repossess your home If you are unable to work or have been made redundant then this is the last thing you need to worry about

Lions and Loans: Why Finance Should Always be Personal
Different types of loans are available for almost every aspect of your life: personal loans, car loans, secured and unsecured loans, home loans, homeowner loans, student loans, graduate loans and career development loans (CDL). If you've suffered from credit problems in the past and now hold sub-prime characteristics, then you will be eligible for adverse credit and adverse loans.

Taking a gamble on your mortgage
While the economy suffers at the hand of credit crunches and Wall Street crises, it's important to remember that it is possible to take advantage of the one thing that has taken a positive drop in recent months - the base rate set by the Bank of England.

How To Find The Best Home Mortgage Loan?
Once you have found the home of your dreams, you want a dream home mortgage loan in order to pay for it. You also want to find a lender who will pull no punches and surprise you with hidden fees later on in the process. Follow these steps in order to find the best possible home mortgage loan for you.

Basics behind Car Finance
When it comes to making a car purchase, paying for it is a big part of the battle. Even mid level new cars run into the $20,000 range. Because of these prices, few people pay cash for cars anymore and statistically about 7 out of every 10 people use car finance to pay for their new vehicle.

The Offset Mortgage Centre Tell Home Buyers How to Select the Best Deal
The Offset Mortgage Centre tells home buyers how they can select the best Offset Mortgage deal in their recently published article.

Bankers First Mortgage, Inc. Opens New Full Service Branch in Historic Downtown Bethlehem
Bankers First Mortgage, Inc. has begun servicing the complete spectrum of mortgage needs of Bethlehem and the Greater Lehigh Valley. George Hanzimanolis, Company President and President of the National Association of Mortgage Brokers(NAMB), a professional organization of 25,000, announced the opening of the newest of 7 offices with a focus on service, support, customer care and most importantly - Integrity. As the President of NAMB, Hanzimanolis is recognized by his peers, the US Congress and the PA State Legislature as a leading authority on broker integrity, state licensing, professional continuing education and consumer protection.

Schwinn Exercise Bikes - A Great Investment
Schwinn has been making bikes since 1895. In the beginning, a single bike weighed twenty two pounds and were far too expensive for most consumers. Over the years, though, as bikes became increasingly available to people, Schwinn pioneered advancements in technology that helped build a better product. When the exercise craze of the late twentieth century hit, Schwinn exercise bikes hit the market with a vengeance.

WEL Named in Financial Investment Experts' Stock Recommendations Report, Featuring Top 10 Stocks for 2008 : Free Financial Investment Advice Report
NewsletterAdvisors.com released the 9th edition of its free special stock investment research report that brings the latest stock recommendations from America?s investment experts directly to investors. The "10 Winning Investments from America's Top Financial Experts" contains analysis from six of America?s most successful investment gurus.

How To Be Free Of Your Connecticut Home Mortgage, Forever!
Lately in the news there have been all types of government sponsored Connecticut mortgage assistance programs that offer to help you if you are facing foreclosure, have an adjustable rate mortgage or just want to buy a home with little to no money down. However, how many programs offer assistance for you to get completely 100% out of debt in as little as 4 - 5 years?

Sabal Medical Receives Initial Institutional Investment Capital
Sabal Medical Inc, a privately held company whose products are helping hospitals deliver medications to their patients more safely and efficiently, announced today that it has successfully closed its first institutional investment financing.