Present Talking…

Is your mortgage broker telling you he is  independent?  Do you know what it means?

All mortgage brokers must be authorised  to transact business by the Financial Services Authority(FSA).

To achieve this many mortgage brokers choose to align themselves to larger organisations (Networks).  They become Appointed Representatives of that Network and sell products from that Networks range of lenders.  The Network arranges for them to become authorised by the FSA under the Network umbrella. They pay a monthly fee for this and receive discounted benefits and support in return.

However, other brokers choose to become directly authorised by the FSA - a longer process but one which can allow the broker more freedom in choosing his relationships with lenders and other providers.

To be Independent a mortgage broker MUST satisfy two criteria, which MUST be clear on all Terms AND Conditions and any website.

1. That he sources business from the WHOLE mortgage market (not a panel of lenders)

2. He provides the customer with the option to pay a fee for his services.   

Point 2 can be a contentious one - some brokers charge a fee for their services some don’t but an independent broker MUST offer such an option to ensure the customer has confidence that the broker is not simply choosing a lender who will pay him the best commissions.

Some brokers ALWAYS charge a fee AND receive commissions from the lenders.  So be warned!  Check the small print to ensure your broker is working in your best interests and not simply being paid twice for his services.  I believe brokers should not be paid twice and to this end I do not charge any fees to customers.  However, as a fully independent mortgage broker I offer customers the option to pay a fee and THEY then receive all of the commissions that lenders would otherwise have paid to me.