Mortgage success

ACG

Its not a science.

For instance:
A lender (this is true) says they consider adverse providing it is over 12 months old.
Experience says the lender will accept a 75% LTV mortgage with a £55 default for a credit card registered 15 months ago. However they do not like a £745 default registered 18 months ago on an 90% product.

Both fit criteria, but one has no chance of being accepted. The other does and in this example did.

Likewise, I have had a case where it fits criteria, it passed creditscoring and then an underwriter declined it because they did not like the overall case. High LTV, tight on affordability and a gifted deposit. But I managed to get it through with another lender which cost less than £5 a month more. Chalked that one down to experience and now I know if I have a case where everything is pushing the boundaries, its probably not one for them.

A case fitting criteria is a million miles from an accept.

Added to that you then also have other little tricks of the trade that help cases over the line.

Some people need brokers, some like the idea of hand holding and some people do not need a broker. Each to their own.

Jhoney_2

Landofwood wrote: »

I doubt that's the best rate you could have got. Sounds like you took the path of least resistance, rather than the path of best value.

So who should OP have applied to? Where is the alternative detail to back up your statement and subsequent remark?

At best you were a bit ham fisted with your post, but it sounds like you sucked on a lemon and swallowed a pip.:)

The OP knows his circumstances and is happy - why rain on his parade?

I would consider using the brokers on here in a heartbeat - they wouldn't have to tout for my business.

Their posts provide more free relevant information than anyone could expect from most (un)paid professionals, so I hope they do respond to offers of work/ paid assistance if pm'd.

They don't have to justify anything to us. I assume cases are confidential and only they/OP are in possession of the facts in relation to this forum.

Congrats OP!

GMS

Jhoney wrote: »

I assume cases are confidential and only they/OP are in possession of the facts in relation to this forum!

Absolutely correct. Hence why the neighbours rate is meaningless. So is the man in the pubs, fella down the road etc.

As brokers we need to fully justify our recommendation and have expensive insurance to cover us should we have messed up.

TBeckett100

I would expect my MA to select the most appropriate product suited to my circumstances rather than the best rate with a slim chance.

I told my MA what provider, rate and term I wanted because I knew it would be the path of least resistance. She talked me out of the 5 year fixed rate and into a 2 year with the expectation that rates will still be low in 2 years and I could then go for a 5 year and therefore have 7 years cheap borrowing

I value ease over rates.

Dave_Ham

Landofwood wrote: »

I guess I had hoped (and to an extent still believe) that Mortgage Brokering was more of an "art" than a "science".

If we look at IT, the PC "reseller" business has changed dramatically over the past few years because Apple have removed the knowledge-gap. It used to be possible to charge a significant uplift in return for sourcing, configuring, training and supporting. Nowadays people just buy a Mac and turn it on.

Mortgages are still a mystery to many, which is why middle-men still exist. But if you're telling me that your primary function (and I know there are others) is to cross-reference a client's data with a defined (although not static) set of lender criteria, then your business is at risk from technology.

If there was an intuitive web-site where I could plug in my details, it compared to lending criteria, ruled out unsuitable lenders, provided pros and cons of each remaining lender, and then packaged and submitted my application to the chosen lender, that would be pretty cool.

Perhaps we could start an MSE Crowdfunding project? Take the knowledge and experience of Kingstreet, ACG and amnblog, plug it into an online database with a slick automated portal and take the lenders' commission.

You could continue to provide the personal support and service that your customers value, but the information-gathering and data-entry phases will be optimised.

Has it been done?

After the original post was a tad much, I actually get the point here. Bit disappointing not to make the research panel of Kingstreet, ACG and AMN although not losing sleep over this point.

Whilst it borders on Science, I personally believe it is an art determining the scientific factors but an interesting debate.

There are so, so many variables in the make up of a case/advice that my belief is it can be computerised, but the details required and the algorithms would make it untenable. This is also on the basis that the parameters change every day.

There is also a fine balance that a one person business cannot keep abreast of all of the goal post moves, new lenders, policy changes, tweaks in lender credit profiling etc. but a 100 person organisation probably doesn't have the communication to effectively filter and share the information

Forums like here and Cherry help, as people share stories, best practice, new lenders etc. but there is no substitute for doing it day in day out, speaking with lenders, seeing what files pass an automated score and generally gauge up to date information.

Long winded answer is technology helps us all, but cannot see huge transformations over the next couple of years as it cannot simply be automated.

Sometimes people get lucky and take a punt on some information on here or elsewhere and therefore think they do not need a broker but in reality this is often not the case, as not everyone gets lucky first time.

Interesting thoughts though...

Jhoney_2

Landofwood wrote: »

You're a bit late with this nonsense, plenty of people have had the same sentiment to which I have responded.

And you were a bit hasty with this nonsense "I doubt that's the best rate you could have got. Sounds like you took the path of least resistance, rather than the path of best value."

Ignoring the rate bit, how do you know what represented best value to OP? Where is your suggested alternative?

I don't care if you don't want to read my post about it, you are irrelevant. I couldn't give a monkeys what you think.

As for nonsense, are you not the clever chap who advised an OP that they would be STUPID to let a seller remain in a property after exchange? ...later amended to 'obviously I meant indefinitely':rotfl::T.

No doubt since deleted..

Jhoney_2

Landofwood wrote: »

Not deleted, if you read the OP you'll clearly see that I meant indefinitely, given the context of the question.

I don't know why you need to belittle people on the Internet, but I can speculate.

That's rich coming from you after your posts above and calling people stupid etc.

You were insensitive to the OP (for which you apologised in general terms), disrespectful to ACG and your comment of nonsense to me required context.:)

For a person whose foot lives in his mouth, you may need to acquire a thicker skin.

Speculate all you like. For those who may be fleetingly curious, it's just projection.

By the way, it was not a buy to let purchase as I recall...so why is indefinitely in any context relevant?

Jhoney_2

I don't have any problems with you, but again I do not take instruction from you so telling me what to do is ridiculous.

Carry on with your so called interesting(? - ah yes, you started the sub thread didn't you) discussion at your leisure. Feel free not to reply.

Jhoney_2

Landofwood wrote: »

Having just read through your posting history, I can see you have quite a sad homelife. I can't imagine living under those circumstances.

I now understand your behaviour and I apologise for my overreaction and unnecessary comments.

Not so sad as to read through your posting history. :rotfl:
I just thought you were a clown, but in fact - You're a comic.:T

Landofwood

Jhoney wrote: »

Not so sad as to read through your posting history. :rotfl:
I just thought you were a clown, but in fact - Your a comic.:T

All the best Jhoney