The Trials and Tribulations of Double Brokerage


Bob the Broker’s Blog: The first post from Bridging and Commercial’s broker Bob  

This week: The Trials and Tribulations of Double Brokerage.   In Bob’s inaugural post he’ll be ranting and about “so called lender idealism” and the new costly layers between the client and the lender.    Agree with him? Yes? No? Well don’t bottle it up! Have your say! Leave a comment... All comments will be checked before publication and your email address won’t be published.   Be sure to follow Bob’s weekly rants published every Thursday.   The trials and Tribulations of Double Brokerage   Having been a financial adviser / broker since the mid eighties, I've seen many changes in our business.   Cornhill, Citi Bank, Combined Life, L&G, Gan, Allied Dunbar, Sun Life, I’ve worked with them all, yes you get the drift, I've been responsible for the closure of an industry the cynics would say – I have seen more life offices close than Maggie's closed pits, (still a thorn in my neck of the woods).   Many years as an IFA followed, and then mortgage broking – covering all the aspects of finance that you can imagine; from the boring regulated stuff such as arranging residential mortgages, through to all aspects of commercial finance, and that's where my heart is.   Is it that I'm happier outside the strict regime of regulation? Well that's for another day... but commercial finance is my specialism. I've ridden through the ups and downs, watched governments come and go, but throughout my career in this business one thing certainly rings true as far as I'm concerned, and it's that old chestnut "it's not what you know it's who you know."   And now, looking at that more closely, one of my current pet hates is this new found lender idealism where they want all us brokers to place business with them but only accept business from the so called select few.   You probably guess where this is taking us? Yes, it's the “you must use one of our 8 or 9 select partners” model, (which by the way is the Aldermore example).   Another recent fine example is a marvellous bridging finance that I was going to place with Drawbridge. Excellent products, but alas can we go direct? Oh no I don't think so, we must go through one of their select partners, as “they're specialists of course”. What are we doing then? Playing at being specialists? Needless to say that case went elsewhere, in fact to Bridging finance NW, and is running smoothly and perfectly, so I must have done summat reight as they say in South Yorkshire.   By the way, Drawbridge will allow us to go direct, but we must hit a very high submission figure to warrant that. Can sole traders – or even small work forces – do that? Of course not! So it's through their partners we must go, in fact their partners only hit targets by our assistance.   What I'm getting at is this: in recent times – on at least half a dozen occasions – I've had to bite the bullet and use another broker just to get to these lenders and their products. But let's look at the bottom line for the client, are these brokers working free gratis? Of course not, they have application fees, arrangement fees and lender over rides, so of course they're very happy sat on their brains whilst we find a client, do the market research, choose the most appropriate lender, complete all the paperwork and then say “right, which broker shall I gift cash to today?” That or we'll double the fees so we still get our fair share.   It's a situation that requires some attention, as the bottom line is this: the client pays through the nose to satisfy the income requirements of double brokerage. Rant over.   Contact Bob Havenhand: [email protected] 

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