Mortgage Broker went ahead too soon

GMS

nodiscount wrote: »

It's a buy-to-let mortgage (but he isn't going to let it - that is a story for another day!)

What is he intending to do and why a Buy to Let mortgage? Is this a way to get an interest only mortgage?

kingstreet

nodiscount wrote: »

It's a buy-to-let mortgage (but he isn't going to let it

There are some brokers who would suggest such an action to get round the proof of income or interest-only rules for a residential mortgage. This is an issue currently being scrutinised by the FSA.

If for the income reasons, I presume the application was to the Mortgage Works, which does not routinely ask for proof of income, as long as the potential rental income is sufficient?

I don't normally bandy around the "F" word on here, but I feel this practise is deception at the very least and such brokers should be stopped.

Crashandburn

kingstreet wrote: »

I don't normally bandy around the "F" word on here, but I feel this practise is deception at the very least and such brokers should be stopped.

I think best to get the 'story for another day' before we blame a broker, but fully understand where you are coming from.

silvercar

My dad rang today and has been told things are already in motion and the valuation has already been done. If he wants to pull out/choose another product he will forfeit a £400 valuation fee.

Simple answer would be to go and see another broker. If he has no contract with this guy, he can whistle for his fee.

kingstreet

Crashandburn wrote: »

I think best to get the 'story for another day' before we blame a broker, but fully understand where you are coming from.

True. But I can't think of any other reason for doing it.

Crashandburn

Agreed. As intriguing as a Corrie story line!

Let_Us_See

A case of a forgetful father, or a very "ambitious" adviser? It is difficult to judge with the available limited information.

Personally, holiday or not, I would repeatedly ring the adviser and request clarification. A good adviser never switches off his mobile - even on holiday! Unless he is a sole adviser, I am surprised his office has not already tried to contact him?

nodiscount

GMS wrote: »

What is he intending to do and why a Buy to Let mortgage? Is this a way to get an interest only mortgage?

I'll be honest with you - please don't shoot the messenger - my dad has no hope in hell getting a 'normal' mortgage; he is 55 and self-employed.

The house is to live in. The plan is to have the mortgage for 2 years (until redemption-fee penalty no longer applies) and use the property he lives in now to pay it off. He doesn't want to sell the property he lives in now because it will take too long to do up and sell.

_Andy_

nodiscount wrote: »

I'll be honest with you - please don't shoot the messenger - my dad has no hope in hell getting a 'normal' mortgage; he is 55 and self-employed.

The house is to live in. The plan is to have the mortgage for 2 years (until redemption-fee penalty no longer applies) and use the property he lives in now to pay it off. He doesn't want to see the property he lives in now because it will take too long to do up and sell.

Fraud then.

Crashandburn

In that case make sure your Dad stops the process. It's mortgage fraud. Not too sure how much complicity there has been from the adviser but suggest you both go and see another adviser to see if it can be done legitimately using the two properties.

Good luck