Mortgage broker woes

Sabriski

I've had a terrible experience with mortgage brokers to get a FTB mortgage! One I made an appointment with did't bother to turn IP. However it is the second one I have concerns about. I spoke to him on the phone and told him our circumstances (I have a default from Feb 2011) and he said that isn't a problem for a lender who will accept defaults older than 3 years. I kept asking for an appointment but he said the way the way he does things is he will send us a form to fill in with our details and he will approach a couple of lenders then we can meet and go through our options.

He emailed me his form and we filled it in. I realise now this was very stupid as I haven't even met this person but I thought you have to be trusting with an advisor.

Anyway, I gave him a few days then gave him a call to make sure he had all the info needed. He said yes and he would get back to me in a couple of hours as he was currently working on it. He didn't call.

I gave him another few days then called last night and he said he would have a decision in principal certificate ready and he would call today around lunchtime! I was a bit taken aback as we had not even discussed what type of mortgage we wanted or for how long etc. Anyway, he did not call.

I have now decided I don't want to go with this broker as gut feeling tells me not to. I do have worries though as he had said he had our credit reports to help decide who to approach and am worried this will now mean it will be harder to get a mortgage. I'm also concerned that he has lots of our details.

Shall I contact him to let him know we won't be using his service or just move on?

Sorry this has been long winded! Thanks for reading.

tvfreek

I am a broker so dont judge me too harshly but if he has actually done the approval it may be best to wait for the response.

If a credit search has been done and you're not aware of who its with you may have problems with the second lender.

Sorry you've had such a bad run but hope this gets sorted for you

Sabriski

Thanks for your reply tvfreek. I have looked at my files on Experian and Equifax and no recent searches are showing although I do not know how up to date they are.

I can see how it will be a problem if I don't even know who it is with. Looks like I'm stuck.

I will call him on Monday and see if I get any joy.

GMS

How much was the default for? Has it been satisfied?


How much are you looking to purchase for? How much deposit do you have?


If you are not happy with the broker then find another. What paperwork have you received from them so far?

Sabriski

Hi GMS, thanks for the reply.

The default was for £647 and is satisfied.

Looking at properties between £100k-£110k with a £20k deposit (gifted).

I've not received anything so far apart from the form he emailed to fill in.

I don't like the way he has handled things and the fobbing off and can see how that can make everything so much more stressful if it progressed further so would like to go elsewhere.

kingstreet

Sabriski wrote: »

I spoke to him on the phone and told him our circumstances (I have a default from Feb 2011) and he said that isn't a problem for a lender who will accept defaults older than 3 years. I kept asking for an appointment but he said the way the way he does things is he will send us a form to fill in with our details and he will approach a couple of lenders then we can meet and go through our options

FWIW, this is similar to the way we operate.

We issue a data capture form and terms of business letter.

On receipt of the information we need, we source lenders/products and issue key facts illustrations.

If the client is happy with them and authorises us to do so, we obtain an agreement in principle from the lender.

Once they've found a property and had an offer accepted, we meet with them to go over the KFI, collect documentation and submit the application.

Once the application is submitted, we issue the final KFI, mortgage application, terms of business, factfind and suitability letter to the client to confirm what we've done.

Only you can decide if you are comfortable with the way a particular broker operates.

Sabriski

Thanks for the reply kingstreet, it has set my mind at rest a bit knowing it isn't unusual to do things in this way.

kingstreet wrote: »

On receipt of the information we need, we source lenders/products and issue key facts illustrations.

If the client is happy with them and authorises us to do so, we obtain an agreement in principle from the lender.

That is how he said it would work. However, I haven't seen any information about different products available to me and I haven't given authorisation to go ahead and get the agreement in principle. Good to know that he does need my authorisation though.

amnblog

kingstreet wrote: »

FWIW, this is similar to the way we operate.

We issue a data capture form and terms of business letter.

On receipt of the information we need, we source lenders/products and issue key facts illustrations.

If the client is happy with them and authorises us to do so, we obtain an agreement in principle from the lender.

Once they've found a property and had an offer accepted, we meet with them to go over the KFI, collect documentation and submit the application.

Once the application is submitted, we issue the final KFI, mortgage application, terms of business, factfind and suitability letter to the client to confirm what we've done.

Only you can decide if you are comfortable with the way a particular broker operates.

This is the right way to work.

How do I know? Because we work in the same way ( but cover the UK and don't meet anyone).

In this market, a broker should not be running any credit scores with lenders unless they are confident they will get a pass and confirmed the client is happy with the terms.

MLSY

if he is not returning your calls it may be best to look for a better service before you start the mortgage process

ACG

Personally, I speak to people get a bsic idea of the circumstances and then complete a factfind (either face to face or over the phone - depending on the client).

If you are chasing your broker at this stage then I would find a new one. If you have to chase them before you are effectively tied in to them with an application, its unlikely to get any better.

There are lenders who will ignore 3 year old defaults, the main one i can think of only do soft footprints when doing credit checks (so it will not be visable to other lenders). They do not need to discuss products at that stage as the DIP is only to find out wether they would lend to you.

jacobtheamish

ACG wrote: »

There are lenders who will ignore 3 year old defaults, the main one i can think of only do soft footprints when doing credit checks (so it will not be visable to other lenders). They do not need to discuss products at that stage as the DIP is only to find out wether they would lend to you.

Watch out for that lender (I'm making a presumption!) they only do a soft search on last 3 years at dip but a full 6 years on application. Easy to get stung with a client with 3+ adverse