Martins View On Using Mortgage Brokers...

kingstreet

Flower3200 wrote: »

the mortgage adviser provides a document called a "Key Facts document" at the onset of their dealings with you as a prospective client

Or even an Initial Disclosure Document?

payless

Yes we call them - Initial Disclosure Document, although in fairness they are branded
"About our services" zand come with the Key Facts Logo :-)

Flower3200

Kingstreet, your comment does not help the members of the public reading this thread.. The document is not branded an Initial Disclosure Document (IDD OR CIDD) as this is what we term it in the industry.

As Payless touches on - if you look at a sample document it is called a KEY FACTS about our services and costs.

What I actually wrote was as follows

the important thing is that the mortgage adviser provides a document called a "Key Facts document" at the onset of their dealings with you as a prospective client.

You can then use this document to compare the level of service offered by the Mortgage Adviser and their company costs. This document will also advise if the Mortgage Adviser is an Independent whole of market adviser, tied to a limited number of lenders or if they will use a single company.

Customers are now becoming familar with Key Facts documents which is why I called it by it's correct name.


I am a Mortgage Adviser. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

handytips

Well i give all of my clients and IDD and Business card on the first meeting. This really is a nitpicking exercise guys, as long as we are compliant what does it matter what the document is called.

dunstonh

handytips wrote: »

Well i give all of my clients and IDD and Business card on the first meeting. This really is a nitpicking exercise guys, as long as we are compliant what does it matter what the document is called.

And that is without bringing the IFA version into play as the FSA abolished that and told IFAs to issue something similar but leave it to each firm to decide what it says and what it looks like.

kingstreet

Flower3200 wrote: »

Kingstreet, your comment does not help the members of the public reading this thread.. The document is not branded an Initial Disclosure Document (IDD OR CIDD) as this is what we term it in the industry

Did you notice the and the ? They were supposed to indicate a degree of levity in my post, which obviously missed rather spectacularly.

I apologise most humbly, but still feel with a "key facts illustration" used to describe mortgage and insurance quotes and a "key facts document" used to describe the wraparound to accompany a protection quote like this http://www.brightgrey.com/downloads/keyfeatures.pdf the consumer hasn't got the faintest idea what terms we use to describe things and doesn't actually need to. It is only the information conveyed therein, which has relevance to them.

Either way, I'll consider myself suitably chastised and aim to do better in future.

Gavlar_2

I may be going off track on this thread, although I’m usually pointed in the right direction!

I have took the plunge as a first time buyer to buy a property and chose a Independent Mortgage Advisor who has charged £300.00 to carry out my mortgage application with the bank.

Vendors accepted my offer at £75k with a 5% vendor gifted deposit… I assumed my mortgage consultant would have interpreted this as being added to the £75k essentially the purchase price being £78750.00, although she has assumed it has being within the £75000.00. Therefore applying to the bank for a mortgage of £75k – nearly £4000.00 short of what is required (you can imagine the vender’s frustration as they have moved out by this time and are in a rented house).

I am meant to be completing next Friday. I feel all parties are point the finger at me, saying, I should have been clearer. Although, this is what I pay them for… to assist and spot these things. My solicitors have had contact with the estate agents and have received all paper work from the mortgage lender (which shows the borrowing amount of £75k), surely they should have spotted this… my consultant has also spoke with the Estate agents, although she states they didn’t discuss the purchase price – just exchanged details of the vendors solicitors.

I understand I am to blame as well. I have had all correspondence from each side so I should have raised this. Although being first time buyer & naïve to it all I left it all to my mortgage consultant to sort. The error is obviously lack of communication.

Am I in the wrong? We all seem to have come to blows with one another which is not a good sign! What would be the best step to take from here, as I can’t find another £4k… Would the bank be willing to increase the mortgage to the purchase price at this stage (£78750.00)? (my consultant doesn’t seem to think so).

Appreciate any feedback

Thanks
Gavin

kingstreet

Gavin - vendor gifted deposit stuff (now gone by the way!) was incredibly difficult to control as the communication between all the different parties had to be spot-on.

When agreeing the sale, the sales memorandum should have read;-

"£78,948 with 5% vendor gifted deposit, leaving £75,000 to be paid" and this would have alerted both solicitors to the issue.

Did the estate agent phrase the sales memo this way as this document is issued to the vendor, purchaser and both solicitors by the agent when the sale is confirmed?

The estate agent would also have to ensure the surveyor was aware when the valuation inspection was booked and someone would need to alert the vendor, as often they simply state to the surveyor the net amount they are receiving is "the selling price."

Your mortgage adviser would have to carefully document to Halifax that the case is partially vendor gifted as I assume you were putting down another 5% in cash to make 10% in total? The borrowing amount sh/would not have been £75,000, but 10% off £78,948 or £71,053. The adviser has no other role in the gifted deposit issue. As long as the mortgage application was correctly completed, the adviser is blame-free.

All you can do now is try to find a 95% mortgage, which is what your plan was designed to avoid.

Gavlar_2

Thanks for your response. Yes, I have recently been told they stopped doing vendor gifted a week after I had applied.
You are right! The memorandum did say that. Although, neither party has seem to have picked this up. In fact I’m beginning to think it is the lack professionalism of the agents as they are an online firm who market themselves on undervaluing properties by 5-10% to attract interest (you may know who this are), I have recently been reading forums on this company and they all seem to say they are not ‘on ball’ and are not very competent.
I don’t actually think the agents have had any contact with the surveyor they only seemed to have spoken with my consultant and the vendor’s solicitors (I think all information has been relayed this way through vendor’s solicitors and mine. I am not sure if the agents have even spoken with my solicitors).
My intentions where to put 10% deposit with 5% gifted as my consultant said this would be better on monthly payments. Therefore 15% off the £78948.00, borrowing amount would be £67105.00. With my mortgage lender only lending me self £67500 (10% off the £75k)… I need to find this extra bit of cash (what is meant to be the vendor gifted deposit). Although I just find it frustrating how it has been overlooked and the possibility of it falling through…
The agents seem to think it shouldn’t be a problem for the lender to increase the borrowing amount…

kingstreet

But if you're buying the property for £75,000 and you have £7,500 to put down, you need Halifax to give you a 90% mortgage of £67,500?

It's not the amount that's at issue, it's that it's now 90% of the purchase price, not 85%.