What exactly is a packager?

Pammy

Ok I have become slightly confused.

I have a broker, now a packager and a lender.

All the docs went to the packager and now they go to the lender....

Why dont they just go to the lender? What is the role of the Packager?

Im confused as to who makes the final decision?

Thanks

VIGILANT22

Do you adverse credit?

Euphoria1z

as far as im aware, a mortgage packager (more commonly used by investors) will obtain a mortgage and then instantly arrange a refinance with another lender, i.e buying below market value, pay deposit, get mortgage with one lender, then instantly remortgage to another lender for the true value/higher value than before so you get your deposit money back. so the packager makes sure that both lenders aware of whats happening, that the surveyors are aware of whats happening and they package the whole thing. thats my understanding of a mortgage packager any way.

Ditch_Crawler

Euphoria1z wrote: »

as far as im aware, a mortgage packager (more commonly used by investors) will obtain a mortgage and then instantly arrange a refinance with another lender, i.e buying below market value, pay deposit, get mortgage with one lender, then instantly remortgage to another lender for the true value/higher value than before so you get your deposit money back. so the packager makes sure that both lenders aware of whats happening, that the surveyors are aware of whats happening and they package the whole thing. thats my understanding of a mortgage packager any way.

Wow!! does !!!!!! like that really happen?

Goldman Sachs...

Euphoria1z

Ditch_Crawler wrote: »

Wow!! does !!!!!! like that really happen?

Goldman Sachs...

dont know about now, but it used to, the point of a mortgage packager was that he packaged the deal so effectively you only use one solicitor and one valuer but 2 different lenders, and the packager would ensure that everyone was aware of whats happenning so your not paying for 2 valuations/solicitors etc.

i dont know if the OP asked the question in this context tho...

Pammy

I'm not sure that is the reason. I have some very minor adverse credit as Vig asked and it was becoming very difficult to find a lender.

Eventually the broker did find one with high street rates but it went via a packager (who I probably could have gone to directly).

Ditch_Crawler

So who paid the packager?

Pammy

I have to pay a packaging fee

Leon_W

You cannot go to a packager directly.

Some lenders use packaging companies to process applications, the packager makes sure that all the references are in order, wage slips, valuations etc often BEFORE the ultimate lender sees it. The packager liases with the broker.

Packagers are not nearly as common now as they used to be but there are still a few. They will have a few lenders on their panel and know the criteria inside out so once the packager gets an application they are likely to be able to place the case right first time rather than get credit checks for a not a hope in hells chance case.

As someone points out above, generally they can help in placing a case if there is a little bit of adverse in the background.

The packager is paid by the lender usually but other fees may be payable..

herbiesjp

What is the minor adverse? And how much?

Ditch_Crawler

Pammy wrote: »

I have to pay a packaging fee

Mmmm, well - if that's what you need to do to get to where you want to be, then so be it...

Finally a lender accepted you, but the packager did not change your circumstances, so why did the lender not accept you in the first place?

DC