MoneyBackMortgages

furndire

I must admit at the moment I am looking for a buy to let mortgage - and the site throws up some interesting prospects. We already have properties which are mortgage free, but want to free some money to build two more on land that we have. I think it is probably worth a lot more to me to have a financial adviser that I get on well with rather than the £150-£300 pound commision we get back'

foolishqueen

I agree with last poster in that the small financial gain for a lot of people will not make up for receiveing good advice. I for example an a FTB, so decided to fill in the forms on moneybackmortgages to see what came back.

Only one mortgage came back form Scottish Widows. I decided to go direct to SW, and get a quote on the same product. After entering all my details, you could get an AIP (not a credit checked one), but when I did it came back saying I would be unlikely to be approved.

So my question is - would I have filled in the form on moneybackmortages for SW only for it to come back declined - even though both asked for the same financial information?!

Cheers.

stphnstevey

I think you need to have a certain degree of understanding of mortgages and the product you want to use this site. Many of the more financial astute of us might well search for a mortgage ourselves via online search engines such as moneysupermarket or moneyextra.

Even if you didn't have an understanding of mortgages, you could always get a broker or mortgage advisor to give you advice and then go to this website and take out the mortgage. As long as the adviser is paid purely on completion (which you won't be doing with them), then you shouldn't have to pay a fee. I know alot of Mortgage Advisors won't like this idea, but it is mentioned in Martin's Article on Mortgages.

I have just cut my solicitor bill in half with conveyancing-warehouse, so might use the website mentioned here to pay me a commision and effectively pay the solicitors fee!!!!

OR as Mortgage company's are making a fortune from massively overpriced arrangement fees, it's nice to in a way get some of that money back from them! I am just wondering if the arrangment fees are so high because the mortgage company has to pay such high commisions to get business??

whambamboo

foolishqueen wrote:

I agree with last poster in that the small financial gain for a lot of people will not make up for receiveing good advice. I for example an a FTB, so decided to fill in the forms on moneybackmortgages to see what came back.

Only one mortgage came back form Scottish Widows. I decided to go direct to SW, and get a quote on the same product. After entering all my details, you could get an AIP (not a credit checked one), but when I did it came back saying I would be unlikely to be approved.

So my question is - would I have filled in the form on moneybackmortages for SW only for it to come back declined - even though both asked for the same financial information?!

Cheers.

Only one mortgage?

I got 300+

Are you asking for huge income multiples?

whambamboo

stphnstevey wrote:

I think you need to have a certain degree of understanding of mortgages and the product you want to use this site. Many of the more financial astute of us might well search for a mortgage ourselves via online search engines such as moneysupermarket or moneyextra.

Even if you didn't have an understanding of mortgages, you could always get a broker or mortgage advisor to give you advice and then go to this website and take out the mortgage. As long as the adviser is paid purely on completion (which you won't be doing with them), then you shouldn't have to pay a fee. I know alot of Mortgage Advisors won't like this idea, but it is mentioned in Martin's Article on Mortgages.

I have just cut my solicitor bill in half with conveyancing-warehouse, so might use the website mentioned here to pay me a commision and effectively pay the solicitors fee!!!!

OR as Mortgage company's are making a fortune from massively overpriced arrangement fees, it's nice to in a way get some of that money back from them! I am just wondering if the arrangment fees are so high because the mortgage company has to pay such high commisions to get business??

Moneysupermarket doesn't work for self-certify which this one does.

jamesd

I'm not impressed by the search. I tried three sample searches and all of them had discrepancies between summary lines and product details in the lowest few APRs that could lead to a wrong product choice.

One example is for a 90,000 loan on 100,000 property, 22 year term, interest only, current account also selected. First result line was this:

5.10% Discount Full Ter 5.3% APR RKM NORWICH & PETERBO No 6.74% £382.50 £789.00

The full product details:

Product "ONLINE 3 YEAR T" so it's presumably not a "full term" deal but a 3 year discount reverting to SVR. Yet typical APR is shown as 5.3%. Hmm. I wonder what the product really is.

But maybe that doesn't matter: "Loan To Value Limits : 90% to max val. depends on mortgage type: 70% for Interest Only". So it doesn't match the search requirements this 90% LTV interest only search.

Second result:

5.14% Variable Full Ter 5.3% APR 316 NORWICH & PETERBO No 6.74% £385.50 £789.00 None

Product : TERM TRACKER so is this lifetime (full term) tracker or for a limited term? Again this doesn't matter because it doesn't meet the search restriction "Loan To Value Limits : 95% to max val. depends on mortgage type: 75% for Interest Only" and the search was for 90% LTV interest only.

HelpWhereIcan

jamesd wrote:

I'm not impressed by the search. I tried three sample searches and all of them had discrepancies between summary lines and product details in the lowest few APRs that could lead to a wrong product choice.

One example is for a 90,000 loan on 100,000 property, 22 year term, interest only, current account also selected. First result line was this:

5.10% Discount Full Ter 5.3% APR RKM NORWICH & PETERBO No 6.74% £382.50 £789.00

The full product details:

Product "ONLINE 3 YEAR T" so it's presumably not a "full term" deal but a 3 year discount reverting to SVR. Yet typical APR is shown as 5.3%. Hmm. I wonder what the product really is.

But maybe that doesn't matter: "Loan To Value Limits : 90% to max val. depends on mortgage type: 70% for Interest Only". So it doesn't match the search requirements this 90% LTV interest only search.

Second result:

5.14% Variable Full Ter 5.3% APR 316 NORWICH & PETERBO No 6.74% £385.50 £789.00 None

Product : TERM TRACKER so is this lifetime (full term) tracker or for a limited term? Again this doesn't matter because it doesn't meet the search restriction "Loan To Value Limits : 95% to max val. depends on mortgage type: 75% for Interest Only" and the search was for 90% LTV interest only.

Actually provides more detail re criteria etc than MortgageGenie and more accurate as takes income etc into account. It would be easy to pick holes in the sourcing results of any system -after all, it is IT - so depends on what a human has input at both ends, !!!! in, !!!! out - that is why I have said in the past that there is more to being a broker than getting CeMap and a bit of sourcing software. Knowing the quirks of lenders' criteria and being able to spot potential issues with a lender for a customer are all part of this; but you have illustrated a perfect example of why you need to be 100% confident in what you are doing to get any real benefit from these that outweighs getting advice

kenshaz

Choice,if you are confident and able this is fine ,but I make an analogy with those who require a travel agent to book a package holiday and others who are happy to make all arrangements on an individual and free lance basis and as such reduce costs,by excluding the middle-person.

Leon_W

Unless you are very very astute, know exactly what you want and 100% certain that you fit the lenders criteria then you are playing a potentially expensive game.

In order to speed up applications, most lenders take the fee for any valuation up front and instruct the valuation the next day, in the meantime all the rest of the application is put together with wageslips, bank statements anything else required etc. Usually the valuation has been done (and paid for) way before the rest is up together.

Now, when the underwriter finally has all the informatrion infront of him/her and sees that the application wouldn't stand a cat in hells chance of being approved due to insufficient income, poor credit or any other criteria then you've done your valuation money for sure.

So you've lost a valuation fee. The company (moneybackmortgages) cannot come back to you and say "OK, you got turned down by lender A, lets go to lender B" as that is giving advice. The only response they can give is "your on your own mate, find another mortgage and try again"

Not exactly a satisfactory experience I wager.

A good broker on the other hand will try to ensure that no fees are lost under any circumstances, by getting the mortgage "Agreed in Principle", and matching that particular client to the lenders criteria.

The system does not allow for anything outside of criteria either. If I have a client who does not fit exactly, and may be able to get a much better deal from lender C with a bit of an income stretch for example, then I obviously go to lender C. Using a sourcing system is black and white with no grey areas, so if the same client had used it, the better deal the broker had sourced wouldn't even show up on the search.

Also, no comeback if things are not quite how you thought they would be !