New build property mortgage/brokers

harrybarber9

Hello everyone,

I hope someone can help with this little issue.

I had an offer accepted on a new build property with Bellway and they agreed to the 5% deposit gift on top of my 20% deposit. At the time of the offer they said would i use their mortgage brokers to which I agreed (they didnt mention any fees)

So anyway I spoke to their mortgage broker who wants to charge £150 for his services but I found a better deal online which he isnt available to brokers.

Seems silly to me, that I have to pay for something that is worse than I can sort myself.

Do I just swallow it and move on or can I do something about it?

Any help is appreciated, thanks for your time

Conrad

harrybarber9 wrote: »

Hello everyone,

I hope someone can help with this little issue.

I had an offer accepted on a new build property with Bellway and they agreed to the 5% deposit gift on top of my 20% deposit. At the time of the offer they said would i use their mortgage brokers to which I agreed (they didnt mention any fees)

So anyway I spoke to their mortgage broker who wants to charge £150 for his services but I found a better deal online which he isnt available to brokers.

Seems silly to me, that I have to pay for something that is worse than I can sort myself.

Do I just swallow it and move on or can I do something about it?

Any help is appreciated, thanks for your time

Do it yourself. Not only will the broker not offer direct to lender deals, he will also try to flog you life cover that will not be the most competetive.

harrybarber9

Thanks, only issue is that my new build company are insisting that I use this broker as part of the 'gifted deposit'.

Do I have grounds to challenge this?

Dave_Ham

You do, but good luck with this and then you can have the same argument about the solicitors.

Developers are a law unto themselves, argue it by all means..

Check your lender you have found are happy with a 5% gifted deposit from the developer...

Conrad

harrybarber9 wrote: »

Thanks, only issue is that my new build company are insisting that I use this broker as part of the 'gifted deposit'.

Do I have grounds to challenge this?

Say your'e happy to have him arrange it, as long as it's the best direct deal available. I'll bet the broker will back off when he realises there's no money in it.
It is illeagle for any firm to force you to use a certain broker especially one that does not arrange the best direct to lender deals (before someone says no broker does direct deals, this is not the case, some do).

If they want to push it, phone the compliance officer at the broker firm. They will deffo put the broker straight.

The developer sales staff just need to know your'e using a lender that accepts the builders gifted deposit arrangment.

harrybarber9

I thought that maybe my builder gets commission and that was why they insisted on me using them?

I have checked and the lender does accept the gifted deposit.

Conrad

harrybarber9 wrote: »

I thought that maybe my builder gets commission and that was why they insisted on me using them?

.

I very much doubt any builder making probably tens of thousands on a property sale, is much bothered about thier little cut of mortgage commision which would typically be something like £400. My mate is Director of a new homes mortgage broker and forever arguing with the developer sales staff to try and get more mortgage leads accross. The Developers staff just want to sell the property, that's where all the dosh is.