What exactly is a packager?

Pammy

Its for £501 from 2005 and believe me we tried so many places, especially those who dont leave a footprint and a couple that do.

Everyone said no. If anything goes wrong now I will be gutted to such an extreme. I have paid for the valuation, and they now have all the required docs and references.

It's been extremely painful process and I am paying higher fees as a result.

The Packager gave the AIP not the lender. I find it a bit confusing to be honest

Ditch_Crawler

Leon_W wrote: »

They 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

I always thought that was the job of a advisor/broker whatever - why bother consulting an adviser if all he/she does is pass on your file to a 'packager'?

Ditch_Crawler

Pammy wrote: »

I find it a bit confusing to be honest

Me too...

DC

Dan_1976

WOW I have not seen packagers talked about on here for a long time.

As said, nothing as complicated Euphoria states, but they are a broker between the broker and lender!

They cut the lenders costs and help place (in most cases) adverse or tricky cases. I would also say that many dodgy mortgages went through this channel!

Pammy

Dan_1976 wrote: »

WOW I have not seen packagers talked about on here for a long time.

As said, nothing as complicated Euphoria states, but they are a broker between the broker and lender!

They cut the lenders costs and help place (in most cases) adverse or tricky cases. I would also say that many dodgy mortgages went through this channel!

Well I don't think its dodgy at all, they have been really vigorous with all the paperwork.

But Im not clear on the process and despite asking them I am still not clear who is taking the risk.

The packager agreed it, they sent the AIP, so they are backing it up. But I'm not sure what their role is if it then goes to the lenders underwriter.

How can they send me an AIP if they have yet to go to the lender??

I feel very stressed by all of this.

Ditch_Crawler

Pammy wrote: »

Well I don't think its dodgy at all, they have been really vigorous with all the paperwork.

But Im not clear on the process and despite asking them I am still not clear who is taking the risk.

The packager agreed it, they sent the AIP, so they are backing it up. But I'm not sure what their role is if it then goes to the lenders underwriter.

How can they send me an AIP if they have yet to go to the lender??

I feel very stressed by all of this.

Pammy, I think you are right to be concerned, and you are entitled to some answers from the people you are dealing with.

Have you paid money out already?

If not, then I would demand some answers before you spend money.

DC

Pammy

Yes I have paid for the survey and I believe Im tied into the arrangement fee although this has not been paid yet.

If this falls through I feel I have run out of options and I can't really even comprehend that right now.

Ditch_Crawler

Pammy wrote: »

Yes I have paid for the survey and I believe Im tied into the arrangement fee although this has not been paid yet.

If this falls through I feel I have run out of options and I can't really even comprehend that right now.

TBH, I am not sure what is meant by AIP!

How can it fall through? You have an offer yeah? And the offer price fits with the valuation?

What's the problem?

DC

Pammy

The AIP is agreement in principle

Because it can fall through after an AIP. They are going through all our paperwork now, 3 month bank statements, pay slips. We def find the affordability but Im baseing all this and the AIP on the packager.

But now its gone to the lender. I guess my concern is that I'm not sure what the word of the packager actually means.

Pammy

Ok I found a defintion of a packager which I would love someone to translate into everyday language for me.

Packager- essentially a third party firm that has an underwriting mandate and authority to market the products of one or more lenders to brokers. Essentially, they act as a 'one stop' shop for brokers who have little or no experience of a certain market or who believe that the packager can offer a better underwriting service than going direct to the lender.

They are also operating as a 'branded lender' which means they have obtained funding from a lender to market a range of products under their own name, but using the lender's underwriting processes and criteria.