Bellway Woes

freddykrueger

I thought I would post on here as I am getting absolutely no sense from Bellway themselves.

To cut a long story short I am interested in a new build and considering taking their part exchange incentive just to make things as quick and painless as possible - from an equity point of view I know it doesn't make great sense but it keeps the missus happy.

I have an agreement in principle from my lender and use my own IFA that I have used for years. I explained this to Bellway but they still insisted that I call this company called New Homes Group so that I could get pre-approved. I explained to them that I had no intention of using a 3rd party mortgage broker but they were still insistent. When I asked for the logic I got the following reply:

I understand your point of view however this is a standard procedure for Bellway and most other builders.
It may seem like a pointless step as you have an AIP, however it is a standard prequalification step that Bellway take prior to holding a property off the market.

When Bellway offer incentives on a development or in order to hold a property off the market, we will ask the client to speak with New Homes Mortgage Helpline – a 5 minute call – in order for them to qualify your status as a buyer.

I appreciate that you have an Agreement in Principle already from your lender and deal with another Financial Advisor – there is no issue with continuing with this.

You have no further obligations with New Homes Mortgage Helpline after the initial call, however in order for Bellway to qualify your details you would have to contact them. The helpline number is 01206 240800.

I just can't get my head round this.....anyone shed any light?

ILW

Make the call, what is the problem?

CloudCuckooLand

It will either be a 5 minute call, or will turn into a sales pitch, at which time you politely say "no, thanks"...

Moglet

In my experience it is just a quick call to run through income and credit commitments to assess affordibility. Don't use them to arrange the mortgage though.

freddykrueger

ILW wrote: »

Make the call, what is the problem?

The problem being is that they haven't explained it to me properly as I was under the impression that it is my lender that makes the lending decisions and not their "preferred" mortgage broker. For example what happens if they do not pre-approve me yet my lender has already done so?

Nevertheless thanks for your reply.

Flashmanchop

ILW wrote: »

Make the call, what is the problem?

This!

5 Mins all sorted

spud211

It's sadly standard practice whenever they are offering you an incentive.

If its a straight purchase, or a simple discount deal, then you won't need to speak to one of their guys, but if its any other kind of incentive, 99% of builders will want you to speak to their lender.

Its part sales pitch (they want the extra comission), but also part to protect themselves. You could say your financial situation is anything at all - and get anyone to pose as a broker when speaking to the builder..but could in reality have no credit and no money.

Builder then takes property off the market, loses money because you can't proceed. Having a known advisor check you over gives them a bit of security.

You won't lose out by doing it - the "preferred broker" cannot pass on any of your personal/financial information to the builder (if they do..open the champage as you can sue for a fortune) so you don't lose out - they simple send through a yes/no decision.

Make the call, and if you are still a bit unsure make it clear to the broker that you don't want the builder getting hold of any of your details.

freddykrueger

spud211 wrote: »

It's sadly standard practice whenever they are offering you an incentive.

If its a straight purchase, or a simple discount deal, then you won't need to speak to one of their guys, but if its any other kind of incentive, 99% of builders will want you to speak to their lender.

Its part sales pitch (they want the extra comission), but also part to protect themselves. You could say your financial situation is anything at all - and get anyone to pose as a broker when speaking to the builder..but could in reality have no credit and no money.

Builder then takes property off the market, loses money because you can't proceed. Having a known advisor check you over gives them a bit of security.

You won't lose out by doing it - the "preferred broker" cannot pass on any of your personal/financial information to the builder (if they do..open the champage as you can sue for a fortune) so you don't lose out - they simple send through a yes/no decision.

Make the call, and if you are still a bit unsure make it clear to the broker that you don't want the builder getting hold of any of your details.

Thanks for this and that was really helpful - the only question I would have is if I walked into the builder prior to knowing this with an agreement in principle from my lender I would have thought that would have given them more security than a mortgage broker.

I suppose when in Rome.....

happy_2008

I had the same thing and a quick call sorted it all out. All they do after is give you a call every now and then asking if they can help with your mortgage.

grimsalve

I guess Bellway get a bit of dosh back from whoever runs the Helpline, and sometimes the Helpline will get a sale so it's just a bit of marketing or advertising or whatever you want to call it. Easiest thing is just phone them up, listen to what they have to say, then politely refuse as you've already got everything in place. And everybody's happy.

d.badger

same here, I bought from bellway and had a 5 min call from new homes group. I even let them come and show me what they had to offer, took half hour but i had found better myself so said no thanks. there was no pressure and kept bellway happy so nothing to worry about