What is A Mortgage Packager?

Completely_Confused_2

Hi there! Update on my situation is that Newbury did admit they made a mistake regarding my credit report and I am - as a I thought - clean, but after all of that, they still said No.

This is because my OH has a satisfied CCJ from 2001 and a payment default in 2004, settled by return.

So my mortgage adviser says he has been in touch with a mortgage packager and has had an Agreement In Principal via email. Now they need to do another credit check and we should get a result within 24-48 hours.

Only thing is, I have no idea what a mortgage packager is or does!

Many thanks, CC x

MortgageMamma

A mortgage packager, hard to put into words but they are companies that are middlemen between brokers and lenders. they do all the stuff a lender would do so as instruct a valuation etc and check documents and get your mortgage up to offer stage. They are sometimes used by brokers with hard to place cases. As they usually concentrate on a specified number of lenders, the staff at the packager have indepth knowledge regarding lender products, requirements and attitudes towards certain things. They are paid by the lender on completion and part of the payment goes towards to broker.

What I cannot understand is, if your partner only had one CCJ and one default why he would send it to a packager in the first place unless you have an usual situation. With one CCJ and default lenders like Leeds Building Society and Chelsea Building Society would still be happy to accept your business, so if he tries to place you with a sub prime lender I would perhaps consider using another broker who knows what they are doing.

AndrewSmith

The majority of packaging houses may also look to charge some kind of broker fee for their involvement, or will be receiving enhanced commission from certain lenders.

They will not necessarily provide you with sourcing results so you will never be entirely sure that you are getting the best product for you.

I personally do not like using packaging houses and have only used them a handful of times in my mortgage career. I like to keep control and autonomy over the case myself.

Andy

MortgageMamma

Me too! Every time I've used a packager I've felt like a puppet and its not worked out the way I wanted. I only trust one packager at the moment and still I would rather not use them

Completely_Confused_2

Thanks guys! What a complete minefield this is turning out to be!

MortgageMamma

Ask your broker why he referred you to the packager, it would be interesting to know