Sub Prime lenders

emmaHarris_2

Why not stop posting, I will stop replying
But hasn't this been your personal agenda even from page 1? This is not a simple topic as many people will appreciate and when provided with more simplicity than the industry terminology would allow, then maybe we can make a positive move forward together. This is not something that everyone has personal experience about but may have family or friends who do or will in the future. This is a growth market and the industry bodies are themselves trying to catch up. The market share is growing and will soon outweigh the traditional mortgage market share. Hence the new entrants and volume of created subsidiaries and the high investment being placed into HML

Many of the Directors or parent companies involved in today’s Sub Prime market are the same as those were around in the 1980/1990's where real exorbitant rates (20%+) were being charged and then they had to leave the UK. It can be perceived that they are still amongst us but under different guises and now closer knit to the Bodies and consultation groups. No, not scare mongering but providing information that maybe some people do not wish to hear:(

AndrewSmith

I've read some rubbish in my time but ............................

emmaHarris_2

Andrew...dont just leave it there...justify that please? Many thanks:)

emmaHarris_2

Again we see another independant mortgage advisor. A trend starting to appear?

No wonder they dont want this information on this site!!

Not consumers are they?

AndrewSmith

emmaHarris wrote:

Andrew...dont just leave it there...justify that please? Many thanks:)

My dear EmmaHarris,

As you will not fail to see I have been around on this forum for some time and have made very useful contributions to the site, I would not have as many thanks if otherwise. The aim of this site is to provide MoneySaving information to posters or offer advice that will provide moneysaving solutions.

I respect your points of view but feel that this is not the place for your verbal outpourings as they seem to have no actual point to make. Surely if there was a direct or sincere point you would have made it by now.

Also with over 12 years industry experience I have nothing to prove to anyone, thus will not justify any comment I make, in the same vain as you do not justify your own motive for posting such epic dialog.

All you seem to want to do is push your name to the top of the posting board by repeatedly placing posts containing mainly waffle about 'we' and 'us'.

I will offer justification when you do.

emmaHarris_2

Let me ask one simple question to ALL mortgage advisors here....when you place a borrowers mortgage with a sub prime lender....known for selling on to another company...do you tell them this up front...do you tell them that yes we place your mortgage with company X but within 2 weeks you will be with another company which could be....Company A, B C, D, E? Please don’t tell us you don’t know this for a fact...Beacon for example of many sell ALL their mortgages! If not why not?

emmaHarris_2

Our motives are clear....lets start bringing some of this information to the consumer. My name has nothing do with anything. Whether you posted a million posts do you expect instant respect. We do not disresepct you or anyone here. Sorry.

We believe that what we have to say WILL bring money saving prospects to many.

emmaHarris_2

Also with over 12 years industry experience I have nothing to prove to anyone

We think this is very admirable and we respect you immensely, we too know many like you with the same and many more years, most of which disapprove of today’s practices as you will soon see, given the opportunity that is:)

homer_j_3

I normally ask the question, is there any lender out there that you would prefer me to not look at for reasons? If they answer yes and tell me then I avoid that company should it be found to be the most suitable product.

The focus of providing advice is to give the client the most suitable product and I do this by conducting detailed fact finds and by getting to know our customers. It is only when I understand my customers needs and have prioritised them and agreed them with the customer, I will then begin the search for the best product.

When discussing a suitable product, the lender may not be the priority on the basis that we are trying to meet their financial aspirations and personal objectives. The lender will only be discussed as a priority if this was found to be a priority in the fact find/getting to know your customer part of the advice process.

I will also discuss the pros and cons of different repayment methods and the different types of products that are available. If I know that I am placing a mortgage with a lender that charges LIBOR, I do explain the differences between that and BOE. I also will advise that because the LIBOR has so many variations (90 day etc) then it can be more volatile than BOE and open to more rate changes than those accounts that use the BOE. If they do not want to ride the variations in payments then I would suggest that they consider fixed or capped rates as a way of protecting.

I guess what I am saying is that I do go into great consideration but I cannot avoid certain lenders unless the client specificaly asks me to if the product is the most suited product for my client and I have met their aspirations and their priorities.

emmaHarris_2

I normally ask the question, is there any lender out there that you would prefer me to not look at for reasons? If they answer yes and tell me then I avoid that company should it be found to be the most suitable product.

Thank you Homer_J and I do appreciate that many Advisors like yourself do just this and by the way it is a professional approach. But, (just for example) would any borrower know Mortgage Agency Number Six or Seven, or indeed the next subsidiary created to assume responsibility for the portfolio sale to avoid??

When providing information as you advise, borrowers will ask what type of company is this and will want to know a little background on them. What they do not know is that in a lot of cases this company will be completely different to the company they will end up with. We have not met one borrower who knew up front that their mortgage was going to be transferred/sold, to whom (even against FSA MCOB) and a high percentage had never heard of the company that they are currently with.

Most borrowers do not JUST expect to be narrowed down to the contractual terms ONLY. Some require future mortgage advise during the early, mid and later terms of the mortgage. We had one borrower who although asked at the time of taking his mortgage out, wanted to know if they could borrow further on their equity as long it was affordable and based on the same lending criteria to be told of course you can They wanted a simple further advance later for a conservatory. Of course, the originator said we provide all these types of services and products, as you would expect from a high street prime lender. They did not tell them at the time they will only be with them for about 2 weeks and they will not be there when they want to use these services. Securitisation business deals and processes take longer than 2 weeks.

They were sold to: 'Obscure Mortgage Company' who informed them that they are only responsible to administer the original terms and conditions and (despite their FSA authorised lending status) do not make further advances.

Lets assume their child could have been severely ill and needed an operation (private) and to fund this through remortgage of their house or to release some further available and affordable equity by taking a further advance. They could not. They were also told that they would not accept another 3rd party secured loan on the property. STUCK! They did not enter into the agreement with all or any this knowledge.

They now have his mortgage, tied up thier current and future equity and stopped access to any further secured loans. Administer only/portfilio performance management. Can you or anyone tell us that these sceanrios are untrue?
Equity... sometimes performs better than pensions. could be deposited monies in the properties and natural equity increases. The fact is now this borrower does not have any control on his own financial destiny and all choices taken away.