Friend+Gf applying for m.gage- what %?

betmunch

bob_dob wrote: »

Hi,
I should point out that my friend and his gf meet the 5 year issue criteria.

They are now, thankfully, going to a broker today.
Just a question, even though they are choosing to go down the fee route (as opposed to the commission route that all of his family are urging him to choose 'because it's free'), am i right in thinking that even if they choose the 'fee' option there may STILL be lenders who the broker cant 'see'/use?

There shouldnt be anything on a new mortgage the broker cant see (I say new as there are a few under the counter retention deals you hear rumours about)

If the broker uses Mortgage Brain there are a couple of tick boxes on the sourcing software to make sure he see the actual whole of market. Then he just needs to check the criteria of the top deal.

If its direct only, I would expect him to help them through the application as best he can although I dont believe there is any requirement to do so.

If its available to intermediaries then I would expect him to process the application in full.

Remember that he can only act on information given to him, so if they dont tell him the house has this 5 year issue he wont know to check that area of criteria, he may ask, he may even know if hes local, but I'm not sure its going to be a standard question.

bob_dob

Hi there,
Before i go on, id just like to say a huge thank you to all the helpers on this thread who have helped my friend avoid being ripped off. That might sound a bit over the top but after what he has experienced, it's not really an exaggeration.

Just two things i should mention that may be of interest to you:
1, I advised my friend to find out exactly what the details were of this '5 year' issue was. Three hours after he asked the estate agent for these details (and the estate agent said that they were on the deeds and that they didn't have the deeds and denied any basic knowledge of what exactly the details were) the seller decided to take the house off the market. (He has previously even offered my friend his mercedes car in with the deal as he wanted a quick sell so he could go and live in Turkey)

2, When he asked the broker that he definitely didn't want to go the commission route, and asked how much the fee would be to do a search for him for the best mortage deal, it took an almighty effort to pin the broker down for a rough figure on what the fee would be. He still didn't provide them with a figure. He eventually stated that if they didn't want to pay commission then he would be paid commission from the insurance that he would pay them once a mortgage had been agreed. My friend explained politely that he didn't want to buy any insurance from him but would rather source it himself to which the broker repeatedly tried to change his mind.
Eventually the broker agreed to look for the best deal and would email them the results.
The results never came.

Please can i have an unbiased opinion on these two points. Would i be right in thinking that the broker could have provided them with results there and then instead of promising to email them?

Thank you once again all, you have been so helpful that it gives me hope in the human race (Without trying to sound too dramatic )

betmunch

Sounds to me like a lazy broker, who hasnt embraced the true concept of independent advice. Just my opinion though.

Be careful when sourcing your own insurance, the last thing you need when making a claim is to find out it was incorrectly set up and you dont get paid out. Again, by going through a broker you get the protection of knowing you have got exactly what you have asked for.

bob_dob

Hey thanks again for the help, great advice.
Regarding the insurance, my friend's dad is a semi-retired broker who they would be going through to get the insurance. As for why they didn't use him first of all- because they wouldn't wait. Please dont comment on that- I know!!!

Plus, i think they wanted to just try someone who either wasn't 'recommended' by someone (as was the first broker who upped his fee from 0.5% that was on his website to 1%) or via family.
I think it all has been an education for them (and me).

Please may i trouble you again to ask what you make of the fact that the house got took off the market after questions were being asked about the 5 year issue? Coincidence?

betmunch

Theres no way of knowing why the house was taken off the market that isnt pure speculation.

If you really want me to guess I'm going to say this: The seller got fed up after the 3rd attempt to buy his place fell through, this was your friend, so decided to keep it rather than sell. total 100% guess!!!

I wouldnt let it worry you, or your friends

bob_dob

You have been brilliant, thank you so much!!

bob_dob

Sigh. Another update on my friend's saga that id really appreciate your comments on:

After the seller pulled out on friday night, blaming 'insurance' problems for his impending move to Turkey, he then phoned my friend yesterday to say that the issues had been resolved and he wants to sell again.

My friend, who cancelled the work being done by his broker after the initial cancellation by the seller, now has decided to go his own route and is choosing a 2 year fixed rate with Nationwide for 3.99%. I had no idea that Nationwide offered such a good deal to buyers with just 20% deposit?

bob_dob

I cant seem to find that Nationwide deal anywhere?

betmunch

Its on their website mate

bob_dob

Bloomin' hell. Im on my phone and cant bring it up you see, thanks for that.