The Broker Blues Thread

amnblog

Lender 1


Asks for copies of tax returns to accompany SA302s (presumably SA302s are not good enough anymore)


We supply them


Then they ask for them again 4 weeks later and we have to tell them they have them on file


Lender 2


Has an online system that cannot handle unencumbered re-mortgages.


Lender 3


Has full signed accounts, and wage slips and corresponding bank statements and accountants letter - now 6 weeks later they are asking for SA302s which at best will be 18 months old.


Lender 4


Does not like the property so cancels the application. We now have a new property but I cannot clone the case and have to re-key (for 3 applicants)


I could go on....


Just needed to let off some steam.

kingstreet

kingstreet wrote: »

Got a client who has been messing about for several months over whether to buy or not. She came via our connection with a builder, but decided not to proceed with them.

She's been back in touch today to say she's found somewhere else. Asked us to contact selling agent to confirm mortgageability and asked if we would charge for this.

I went back and re-attached our TOB explaining what we charge and when.

Got another email back asking if this means she has to commit to a mortgage through us before we would contact the agents. I made it clear if she wants to use us fine, but don't expect to get us to do all the legwork then decide to use another broker or go direct.

I look forward to receiving our signed terms of business before I'll be doing anything else on the case.

Update. Not heard from client since.

jacobtheamish

80% of my business is on newbuild, a lot of which is Help to Buy EL. We were approached by a developer to qualify and arrange Shared Ownership purchases. I don't charge a fee as usually due to location average loan is over 250k so the proc fee is fine but this shared ownership is driving me mad. Clients seem to require three times as much of my time, lie constantly about debt, often not disclosing it to start with. Does anyone else seem to find this with Shared Ownership clients? Maybe I should start charging a fee!

amnblog

You have to charge for SO.
You only get 50% of a usual proc fee (sometimes less).
The process is more involved.
The clients scenarios are complex.


We stopped doing S/O as it wasn't profitable.

Dave_Ham

Granted we specialise in adverse, but still we do not go out of our way to get involved in any shared ownership cases.


Would not even dream of doing these without a fee.


There are so many variants in the schemes that typically you have to check and triple check, as even when you get the offer the solicitors can sometimes get over busy in the detail and kick it out.


Not sure there is anything on the lying over unsecured debt, as many clients try this and we almost certainly get credit files for 99% of clients now in any case.

amnblog

What about an adverse shared ownership.


You should get a knighthood for getting one of those through!

jacobtheamish

I always request a credit file as soon as a client mentions missed payments etc as the FCA require. It is very rare that I get non disclosure from a standard purchase client, but its 9/10 shared ownership clients that seem to think it doesn't matter about the 3k credit card and missed payments. I'm starting to stereo type clients. My own personal view of shared ownership is that it is a terrible scheme and certainly not worth considering when there are options like help to buy at the moment.

kingstreet

We have a connection with a RSL in the Midlands and yes, we get a lot of wasted effort on 95% shared ownership with borderline credit worthiness, affordability and other criteria-related issues.

It's one of the reasons we charge a fee.

LBS £40k mortgage at 0.37% = £148! Even with our £200 fee we struggle to make any profit on such cases, given the propensity for Leeds to create extra work.

jacobtheamish

kingstreet wrote: »

LBS £40k mortgage at 0.37% = £148! Even with our £200 fee we struggle to make any profit on such cases, given the propensity for Leeds to create extra work.

Should charge a fee for just having to deal with their secure email system!

Dave_Ham

amnblog wrote: »

What about an adverse shared ownership.


You should get a knighthood for getting one of those through!

Arise Sir Dave, have got 3 through in last 3 months. Although all through the same lender and with varying degrees of pain.