50 Reasons to use an Independent Mortgage Broker

amnblog

Thrugelmir wrote: »

Personally I see lenders in the future increasingly using brokers to vet applicants and providing an initial screening. Thereby reducing the lenders own cost base.

HSBC starting to distribute via intermediaries is a sign of this Thrug

kingstreet

ACG wrote: »

Im sure we all have examples like that.

But what about someone looking to borrow less than 1x income, good stable jobs, no major expenditure, savings in the bank to pay off the mortgage in full if they wanted to, no adverse, no major expenditure... my dad as an example.

No lender in a million years is ever going to decline him. He has experience applying for mortgages (pre MMR), hes not daft and is comfortable making an application.

The only reason he would use a broker is if he is being lazy.

That's what I said. Your description is of a super vanilla borrower (within the parameters I laid down for my description) who doesn't need a broker, IMHO.

He wouldn't be declined by any lender.

ACG

kingstreet wrote: »

That's what I said. Your description is of a super vanilla borrower (within the parameters I laid down for my description) who doesn't need a broker, IMHO.

He wouldn't be declined by any lender.

That post was aimed at amn. People were being rude and calling, interrupting me typing so it took me a while.

kingstreet

Thrugelmir wrote: »

Personally I see lenders in the future increasingly using brokers to vet applicants and providing an initial screening. Thereby reducing the lenders own cost base.

This has nothing to do with peoples own ability to do the leg work. I should add. More to do with less branch staff on the ground.

A few years ago, I was friendly with a C&G manager (pre-LLoyds) and they worked out getting a new mortgage through the front door cost them £4,000.

They then introduced £1,000 cashback handcuffs to keep existing borrowers they didn't want to lose.

Assuming broker commission of 0.35% that means they could pay a broker to introduce a mortgage upto £285k and the commission would be less/same as they were happy to pay to keep a borrower and well under the £4k they were spending to get a new borrower themselves.

amnblog

..and they are not picking up the risk on the advice.


Lender's like direct business because if gives them a chance to try to flog other products. MMR means that the whole process is now too unwieldy for their poorly trained and over-worked staff.

ACG

amnblog wrote: »

MMR means that the whole process is now too unwieldy for their poorly trained staff.

I agree with that!
Having worked for a bank, the employees there know their process and thats it.

They do not understand anything outside their own box.

shortchanged_2

I have to admit amn does really seem to be pushing the broker thing at the moment.

Is business slow at the moment?

Thrugelmir

ACG wrote: »

I agree with that!
Having worked for a bank, the employees there know their process and thats it.

They do not understand anything outside their own box.

In times gone by it was only ever senior banking officials that had the authority to grant any line of credit. I recall meeting my bank manager for my first car loan. Had to provide a budget as well even though I lived at home at the time. :eek:

Dave_Ham

shortchanged wrote: »

I have to admit amn does really seem to be pushing the broker thing at the moment.

Is business slow at the moment?

Completely and utterly the opposite. Every decent broker I know is snowed under, given the banks behaviour directly and our friends at the Estate Agent.


I think the thing with this forum specifically is that many, many people come on here with avoidable situations that are causing stress and increasing costs.


Most if not all could be avoided by using an experienced broker upfront. Therefore the suggestion to use a broker, is not self promotion or importance but actually pragmatism.

M0ney

I've recently been given a AIP, I applied to Virgin Money for a buy to let mortgage at just over 70% (TBC after valuation) the loan is for just under 1.25x my salary and rent will be more than 125% of 6% interest.

I went direct, after getting fed up with London and Country after never been able to get through to them and each time I called I waited 30mins+. Anyone see any issues i may have?