Did we get a good rate?

MortgageMamma

we really do need an official article on this tricky matter. Whilst I've always been aware of securitisation I'm embarassed to admit I had no idea about half of what Emma says goes on. And, I read Mortgage Introducer and Mortgage Strategy cover to cover each week

emmaHarris_2

I am not too sure though that Dai's question has been answered in regard to whether it is a good deal based on the rate:) I suspect however, there could be better deals in the prime market (considering total mortgage costs etc) but I do not know.

(Certainly not my area)

MortgageMamma

Dai approached me and I advised him a few weeks back (before he had a deposit), so I will offer to re-source for him on this basis and see what I can come up with. he's taken advice from an IFA recommended by family as opposed to a Whole Of Market Mortgage Advisor, so it may be the case there is better out there. If I can beat the gmac deal and get him with a prime lender, which I hope I can, that should answer his question.

emmaHarris_2

Hi MM, that’s brilliant and I wish you and Dai the very best:)

I have posted a few snippets of information re: securitisation in the sub prime thread. You wont find the 'smoking gun' here if you take what is read as fact but combined with actual practices, opportunities secured and the lack of consumer awareness (by way of some of these rules - MCOB included) and lack of advanced rules in this area then all the jig saws can be put into place and one can see how borrowers can easily become worse off and not better off.

emmaHarris_2

on page 5 here you will also see (coincidently) GMAC mentioned.

http://www.fanniemaefoundation.org/programs/hpd/pdf/hpd_1503_Eggert.pdf

Page 17 is also interesting at the bottom. We have instances of these happening today in the UK market.

Page 19 also provides information on repossessions...pool (portfolio) mangement is a priority for the investor. We see this practice actually operating today in the UK market and our evidence is not drawn from the well known and authorative fanniemay articles alone but used as a term of reference for research puporposes only.

dai_griff

Mortgagemama, I was just reading all these reply's through my PDA as I stood on the ground that will be our house.

After reading what Emma had posted, and very intresting it is to, I said to my better half that I'd better get some advice from you before anything is signed.

The IFA we have now has already said that she would recommend changing in 2 years to a better deal.

Mortgagemama, I am days this week so will try and contact you, or you conatct me after 4pm. If you can get a better deal, then that is brilliant, and to honest perhaps you can explain what has been posted here.
I think I understand what Emma is saying but dont understand what she's getting at, other than there is very little customer service at the end of the line. If im correct there is out to stop me changing my mortgage to another provider even if it is sold on?

Anyway, time is on my hands, the planning will not come through till the end of May, start of June and then have 8 weeks till exchange of contracts, have got a local solicitor and everything is fired up ready to go. The builder is also willing to take a small deposit!!!! Just need to find 6K before completion of the build in Jan next year!!!!

Thanks for all the advice so far.

I will post again if mortgagemama comes through with a better deal, the only reason I didnt call you back by the way is that I didnt want to drag you away from yorkshire to sunny north wales.

Dai

MortgageMamma

Hi Dai

Will contact you during the course of this week and explain everything. As you property is a long way off being built you have plenty of time on your hands, and now may not be the best time to secure the mortgage, as it will have to complete within six months of application.

Speak to you soon. Lisa

emmaHarris_2

Hello Dai,

I think I understand what Emma is saying but dont understand what she's getting at, other than there is very little customer service at the end of the line. If im correct there is out to stop me changing my mortgage to another provider even if it is sold on?

I am sorry if I have complicated things for you but this is quite a heavy topic anyway even for those in the mortgage industry. I really do wish you the very best for your future plans and I hope you will find the 'right' deal that provides you with peace of mind and security for the long term.

EmmaH:)

emmaHarris_2

You may want to see this link to see the lengths of deceiving consumers will go too... This is a link from GMAC site:

http://forums.moneysavingexpert.com/showthread.html?p=2077532#post2077532

emmaHarris_2

Just a quick note in regard to transferring or selling mortgages (securitisation/whole loan sales).

The mortgage offer will provide a line to say "...that we 'may' sell or transfer your mortgage at anytime to anyone etc"

This is provided at the very last minute at the signing stage - after verbal agreement has been given and some 8 weeks after he application thus ensuring that the borrower has not gone elsewhere.

Considering that the whole loan sale/securitisation requires negotiations and deals to made and the borrower/mortgage types pre-agreed 12 to 18 months in advance, it is strange they would use this minimal term and particularly when thier business module and annual accounts show that they carry this out 100% of the time and in disregard to the FSA - MCOB guidelines and of course the 'spirit' of using these guidelines, as follows:

MCOB 6.4.16 If the firm knows at the point that the offer is made to the customer that its interest in the regulated mortgage contract will be assigned (by sale or transfer) and the firm will no longer be responsible for setting interest rates and charges, the offer document must:
(1) state this; and

(2) state, where known, who will be responsible for setting interest rates and charges after the sale or transfer.

MCOB 6.4.17 Where MCOB 6.4.16 R applies, if the name of the party who will be responsible for setting interest rates and charges after the sale or transfer is not known at the point the offer is made, the firm must notify the customer of this as soon as it becomes known.
MCOB 6.4.18 MCOB 6.4.16 R and MCOB 6.4.17 R could apply where the ownership of a regulated mortgage contract is transferred to a third party through securitisation.

Most transfers take place within a couple of weeks after signing the contract, sometimes shorter.

http://fsahandbook.info/FSA/html/handbook/MCOB/6/4?searchtext=mortgage%20transfer&searchtype=boolean