Harmless Checkup?

reidy100_2

I have just been accepted for a remortgage. But in the Conditions of mortgage there is the following condition....

Shortly after completion we will arrange for a consultant from @@@@@@@@@@@ to visit you at your home (at our cost) to ensure that you understand how the mortgage works and to give you an opportunity to raise any queries you may have in relation to it. to enable them to do this we will pass on details of your application to them. It is important that you keep the appointment.

This was a self certified mortgage thro a broker and my earnings were a figure I am going to have to work hard to illustrate:o

As the mortgage has been agreed and is a/w completion do i have anything to worry about? or has anyone previous experience of this.
It is an interest only mortgage over 14 years

Am I worrying about nothing or is it a little sinister?

Thnx

Reidy

dunstonh

AFAIA, there is no reason for a home visit from anyone from the lender when the mortgage is arranged through a broker.

They are not allowed to cross-sell any products so a home vist without any sales opportunities usually means that it is a compliance issue that they are looking at. This would mean that they are likely to be investigating you or the broker or perhaps both. Of course, it could be a different reason but given the nature of these things its usually sales or compliance.

reidy100_2

Hmm when the broker rang the building society they said they wanted to be seen as a caring BS and to ensure that as it was an interest only mortgage that I was aware that it had to be paid off and how I intended to do that.....

dunstonh

Can you name the lender. That way the brokers here can tell you if its the norm or not.

reidy100_2

I am a bit wary of naming the lender on here as I have read in other posts that they look at the posts. any suggestions? I also read that if the mortgage isnt completed no offence has been made?

Maybe I should hold on completion at the moment and get my broker to look elsewhere? Or chose another broker / lender that is able to cover my requirements, so that i am not struggling if i have to explain my income.

Maybe I should post on here what my possible earnings could be?

Sorry for soo many questions. but then again maybe im worrying about nothing but i just wonder why they are waiting until after completion to see if I understand the workings of the mortgage

Thnx

Dunstanh

Jays

reidy100 wrote:

I am a bit wary of naming the lender on here as I have read in other posts that they look at the posts. any suggestions? I also read that if the mortgage isnt completed no offence has been made?

Maybe I should hold on completion at the moment and get my broker to look elsewhere? Or chose another broker / lender that is able to cover my requirements, so that i am not struggling if i have to explain my income.

Maybe I should post on here what my possible earnings could be?

Sorry for soo many questions. but then again maybe im worrying about nothing but i just wonder why they are waiting until after completion to see if I understand the workings of the mortgage

Thnx

Dunstanh

What could the lender do, if they saw their name on this site? I cannot see any problem with naming them.

stanmoresaver

reidy100 wrote:

I am a bit wary of naming the lender on here as I have read in other posts that they look at the posts. any suggestions? I also read that if the mortgage isnt completed no offence has been made?

Maybe I should hold on completion at the moment and get my broker to look elsewhere? Or chose another broker / lender that is able to cover my requirements, so that i am not struggling if i have to explain my income.

Maybe I should post on here what my possible earnings could be?

Sorry for soo many questions. but then again maybe im worrying about nothing but i just wonder why they are waiting until after completion to see if I understand the workings of the mortgage

Thnx

Dunstanh

Have to say that i think your broker should be explaining this to you- that's what he is paid to do.

Many lenders are seriously tightening up there procedures to cover themselves regarding interest only mortgages- which they regard as a time-bomb waiting to happen, so this is probably the reason- but what puzzles me is why they should worry as the sale is advised so there is no real comeback to the lender.

If you want to- pm me with the lenders name- i would actually like to understand this one.

SS

(I promise not to post the lenders name!)

reidy100_2

thanks Stan what do you mean by this bit???

"but what puzzles me is why they should worry as the sale is advised so there is no real comeback to the lender."

reidy100_2

PS my broker is abroad for 2 weeks

dunstonh

When a broker arranges the mortgage, he/she is taking on the liability for the advice given. Not the lender. If you walked into the branch of that lender, they take on the responsibility.

This is the bit that concerns me as the lender shouldn't be getting involved with any of the servicing of the mortgage as that is the broker's responsibility.

stanmoresaver

reidy100 wrote:

thanks Stan what do you mean by this bit???

"but what puzzles me is why they should worry as the sale is advised so there is no real comeback to the lender."

It's really to do with the responsibility of the advice, and therefore any possible redress if the advice is deemed to me "flawed"

If the sale is introduced by a broker (and therefore advised) the broker is liable- not the lender- however, in the lenders submission to the regulator- the lender will suggest steps they will use to reduce the "abuse" of self cert mortgages.

(I am of course assuming that it is an advised sale rather than "execution only" where you have purchased the product without advice)

Hopefully my rep for the lender will come back to me tommorrow morning.

SS