Brokers may introduce mortgage fee

RTE

Creates yet another expense, I mean seriously, these guys are destroying the market not the “doom mongers” :unamused:

Over the last year or so, as the rate of house price increases have moderated and started to reverse, buyers have faced …

  1. Increases in Estate Agent Fees
  2. Reductions in the number of available mortgage products
  3. Increases in some mortgage rates
  4. Now, increases in brokerage fees
  5. Reluctance of vendors to reduce prices in a “cooling” market (perhaps under the advice of their EA)
  6. Hoarding of unsold inventory by developers

Doesn’t point to an open, free and properly operating market if you ask me.

Blue Horseshoe

So will these lead to an even greater bust when it finally comes?

What do I get for this fee?

If I call up 4 banks and ask them to quote me happy, am I likely to get a better deal through the broker which would justify this fee.

If so then fair enough.
If not then…
End of the Road, meet Broker
Broker this is the End of the Road.

-Rd

i’m facing the bullet and some of my fellow pinsters seem delighted!

we’ll have to get innovative now, and find ways to justify a fee, in fact, I would be very interested to know from anybody here if

  1. they feel brokers could ever perform a job that warrants a fee
  2. what they would and would not pay for.

it’s the way brokerage is going one way or the other, but i want to make sure (at least our place) is ahead of the posse, so let rip folks!
ii’d love to hear your ideas/opinions!

I would do as suggested above - charge a fee but give the commission back.

Also, get in touch with foreign banks that do long-term fixed mortgages. There is a market for it in europe; just because our banks are want to borrow short to goose profits doesn’t mean that our punters want to borrow that way.

actually i’m in a small group of brokers trying to bring in banks from other countries so that we can get more choice and things like 30yr fixed rates the way you can in the USA, when things were booming everybody was too busy to listen to us and now they are to broke to get into what they all say is a good idea, i’m a little bitter to be frank, if they had taken the time to do this it may have had a foothold in the market, now we’ll have to wait until all of the dust settles, and i have no crystal ball telling me the answer to that one, although the tealeaves in my tea this morning said i should go to sleep and wake up in 2009.

MortgageBroker. I know of something you could offer.
You could arrange mortgages from say a Japanese bank on an Irish home. This allows the average punter access to the carry trade.

yoganmahew said

REA mortgages have being doing that I think quite successfully for the last number of years and on the face of it you would think it would have caught on more but people in this country are loathe to pay for advice be it mortgage or financial.
I dont think its because they are tight I just think they dont or cant see the benefit of it when you can get ripped off in your bank for free so I believe a certain amount of education re the value of independent advice some advertising and access to products not available on the hight street might help the cause.

Yes. Offer better more inovative products and get backing from foreign banks.
One is an offset mortgage. Mortgage holder has a monthly payment to make. He can also store his savings in the mortgage account which means he has paid off more. He also can withdraw this savings at any time. While the savings are in the mortgage account he is saving himself on interest.

BTW, nobody is happy about you loosing your job. If there is anybody then they are a c**t.

I know what the service would be, I just don’t know if it’s a service that brokers can provide.

For me it’s very simple. I understand how mortgages work, so I don’t need anyone to explain that. The only service that I would be willing to pay a mortgage broker for is finding me a mortgage that saves me more over the life of the mortgage than the fee.

OR.

Find me the same mortgage that I would have found myself, but save me the time it takes to find it.

If you’re going with the latter then I’d need your fee to be no more than €60 per hour of the time you save me. You might find a mortgage in an hour that takes me 3 hours, in which case I’d pay you up to €180.

If the market bottoms out and I start buying investment properties then I might have more use for a mortgage broker because you’d be getting into a slightly more complicated world of multiple mortages on multiple properties.

Perhaps a direction you should take your business is to go the route of an advisory property broker, where you help people figure out a property investement strategy and help them with the financing.

In a sense right now you offer a service that is similar to the Execution Only service of Stock brokers. I don’t know if there is a gap in the market for a property equivalent of an Advisory Stock Broker.

-Rd

Totally agree with that MB.

It seems the last available 20 year fixed disappeared about 2 years ago - BOI I think. Max now is 10 year fixed.

I think a 20, 25 and 30 year fixed rate mortgage would be attractive, and would serve as a benchmark against which to judge all the other crap out there. It is sensible and safe.

This certainly was the standard in the U.S. - at least until the toxic shit appeared. I believe it’s the standard in France/Germany also.

Good Luck !!