Remortgages, Mortgages And Secured Loans Arranging No Longer Allow A Broker Much Income..
Most people are anxious to find out what other people earn and this fact is common to most..
When we are talking about mortgage and secured loan brokers we still wonder how much they earn. Individuals always wonder if there is any money to be gained by arranging a mortgage, remortgage and also homeowner loans.
Prior to the credit crunch the profit to be made by being a secured loans broker was more than fair as the commission paid by loan providers to the broker for introducing business was perfectly reasonable..
Until 2006 before the dreaded recession there were a good selection of secured loan lenders offering a vast array of products including self declarations of income for self employed applicants, 125% equity plans where by the secured loan applicant could obtain a secured loan of 25% above the value of the property, and secured loan brokers arranged all these secured loans through the numerous lenders.
It was a case of the lender and the broke depending on each other.
However since 2007 the number of secured loan lenders has gone down yo a handful with many of them going out of business..
Future Mortgages was one of the first to shut its doors mainly due to the fact that it was part of an American group who suffered dramatic losses in America through its involvement in the sub prime mortgage market.
Others swiftly followed including First Plus who were virtually a household name and conducted a very high profile advertising campaigns in the press and television.
When we look at the secured loan industry at the end of 2009 we are looking at a product that is a very pale cousin of the secured loan industry of three years ago, and the earnings of the secured loan broker is similarly pale.
Commission which used to afford a decent standard of living has been cut to on average 1% of the value of the loan, meaning that the commission for a secured loan of 5000 would be the lordly sum of 50, and even for a secured loan of 30,000, the secured loan broker would receive 300.
Processing costs for valuations, Land Registry searches have to be paid by the secured loan broker, and after all these are paid, and not even including other costs there is no profit left.
Therefore in order to make a living and not act like a non profit making charity the secured loan broker is now 100% forced to charge his clients fees.
Mortgage lenders pay the same now as before the recession to mortgage brokers who introduce business to them, and in general this is about a third of one percent of the remortgage or mortgage value. If it is a small mortgage or remortgage this again is not sufficient to make a living and normally the mortgage broker will obtain a small fee from the client. This fee is worth paying for his knowledge of the mortgage industry.
When we are talking about mortgage and secured loan brokers we still wonder how much they earn. Individuals always wonder if there is any money to be gained by arranging a mortgage, remortgage and also homeowner loans.
Prior to the credit crunch the profit to be made by being a secured loans broker was more than fair as the commission paid by loan providers to the broker for introducing business was perfectly reasonable..
Until 2006 before the dreaded recession there were a good selection of secured loan lenders offering a vast array of products including self declarations of income for self employed applicants, 125% equity plans where by the secured loan applicant could obtain a secured loan of 25% above the value of the property, and secured loan brokers arranged all these secured loans through the numerous lenders.
It was a case of the lender and the broke depending on each other.
However since 2007 the number of secured loan lenders has gone down yo a handful with many of them going out of business..
Future Mortgages was one of the first to shut its doors mainly due to the fact that it was part of an American group who suffered dramatic losses in America through its involvement in the sub prime mortgage market.
Others swiftly followed including First Plus who were virtually a household name and conducted a very high profile advertising campaigns in the press and television.
When we look at the secured loan industry at the end of 2009 we are looking at a product that is a very pale cousin of the secured loan industry of three years ago, and the earnings of the secured loan broker is similarly pale.
Commission which used to afford a decent standard of living has been cut to on average 1% of the value of the loan, meaning that the commission for a secured loan of 5000 would be the lordly sum of 50, and even for a secured loan of 30,000, the secured loan broker would receive 300.
Processing costs for valuations, Land Registry searches have to be paid by the secured loan broker, and after all these are paid, and not even including other costs there is no profit left.
Therefore in order to make a living and not act like a non profit making charity the secured loan broker is now 100% forced to charge his clients fees.
Mortgage lenders pay the same now as before the recession to mortgage brokers who introduce business to them, and in general this is about a third of one percent of the remortgage or mortgage value. If it is a small mortgage or remortgage this again is not sufficient to make a living and normally the mortgage broker will obtain a small fee from the client. This fee is worth paying for his knowledge of the mortgage industry.
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