Becoming Who You Want To Be

It is a natural instinct of mankind to wonder how much his fellow human being earns.

The same is true when it comes to mortgage and remortgage and secured loan brokers. Some people looking for alternative employment consider if there is an adequate living to be made by being such a broker.

In the past it was possible for these brokers to make a good living, as they were paid good commission for introducing secured loans to the secured loan lenders.

There were a number of secured loan lenders who offered numerous secured loan plans for all people and all circumstances. These secured loan lenders were in stiff competition with each other and as such they relied heavily on brokers to introduce as much secured loan business to them as possible.

It was a case of mutual inter dependence between the lender and the broker.

Many of these secured loan lenders are no longer in business, and frequently this is due to their inability to obtain funds.

One of the first of the secured loan lenders to withdraw was Future Mortgages part of a large American group who found it no longer feasible to continue to trade in the UK market due to heavy losses in the USA.

The underwriting of some of the secured loan lenders was so lax, and it was these practices in the banking industry in general that contributed to the credit crunch.

The secured loan industry at the end of 2009 is a very different industry than it was pre credit crunch, underwriting has been tightened and so has the commission paid by the secured loan lenders to the secured loan brokers.

The commission has been reduced to such an extent that it is difficult to make a decent enough living. A secured loan broker in general now only receives commission of 1% of the secured loan value which goes no where towards covering costs let alone leaving a profit.

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.

Looking to find the best deal on remortgages, then visit www.championfinance.com to find the best advice on remortgages for you.