mortgage refused with bank, using a broker - fees

stressederic

Hi all,

I saved and took out credit cards and spent sensibly over the last 9-6 months. My Experian report is 40 off good (so it's in fair) I save £8k with my save to buy (nationwide) and I called them after finding a house this week and they declined me based on my credit score - I have appealed and will find out tomorrow if they've changed their minds.

I called Brytannic a broker instantly and he spent all day finding me a mortgage which is with Aldamore bank so I got my DIP and didn't lose this house that I had put an offer on. It's 6.09% repayment 95% mortgage.

The problem is the broker fees are £995 and then Aldermore are asking for £999 mortgage fee, £280 valuation fee and £360 conveyance fee. That's a lot of money for me..

Can I look elsewhere in the meantime or am I stuck with this? I don't want any more credit searches on my file as my score isn't strong to start with, there is nothing wrong on my credit file, I just don't have a lot of credit history.

Thanks

ACG

Aldermore only do a soft footprint at DIP stage so the only people who can see the credit check are you and aldermore.

Did you sign any documents with Brytannic? Anything that says if you pull out you are still liable to pay their fee or any fee? If not then you should be able to go to whoever you like.

stressederic

thanks for the reply

I haven't signed anything. I should have something in the post soon though. I just don't know what else I can do?

stressederic

And.. in the meantime can I get a solicitor and get everything moving whilst I look for a cheaper broker/better mortgage?

amnblog

If you were not prepared to pay the broker why did you ask them to work for you?

Don't expect there is some kind of 'cheap' solution out there.

Finding a deal with a 5% deposit and a poor credit file is fishing in a shallow pool.

Stick with what you have - bird in the hand.

csgohan4

have you factored in the stamp duty and removal costs and furniture??


Conveyancer fees can be expensive, I am paying almost 1000 for mine. If you want cheap services you will get cheap in return. Don't skimp on a good conveyancer or broker for that matter.


Make sure the broker and conveyancer is rated. Depending on the lender you will have to pay for valuation fees as well. Not just aldamore.


Has the broker gone through the monthly costs of the mortgage with that Interest rate and can you afford it? is he getting commission and is he whole of the market?


If you have a good credit history can you get a better mortgage? I would ignore the rating and more important is any CCJ, loans, cars, debts e.t.c

Jon_B_2

You don't sound like you are in a financial position to buy a house IMO. All the fees you quote are standard, broker or not.

Dird

Jon_B wrote: »

You don't sound like you are in a financial position to buy a house IMO. All the fees you quote are standard, broker or not.

Agreed. It sounds as if he should continue saving for another 6-9 months but apparently he's already found a place he likes.

@OP can you just go straight to aldermore now & cut out the broker? Perhaps Aldermore can add most of those fees to the mortgage? You've already been refused by nationwide so if you were going to apply through someone else you should try quickly before the seller gets annoyed & you lose the house

ACG

Aldermore will not allow him to add the valuation fee, solicitors, broker or arrangement fee on a 95% product.

silvercar

Mortgage broking must be one of the few fields where you can do most of the work and then not get paid and there is little you can do about it.

Dird

silvercar wrote: »

Mortgage broking must be one of the few fields where you can do most of the work and then not get paid and there is little you can do about it.

Wondering how many fields there is in general but there's a few surrounding house buying at least.

I'm fine when it's purely commission based but when it's coming from both ends, not so much. Connells MA would have charged me £500 while also taking commission from nationwide etc. She kind of lived up to the negative reputation of EA MA's too by just blindly searching for 5y fixeds that I said I wanted rather than telling me 2y fixeds would work out cheaper.

The exception is things like my mortgage provider's critical illness cover through L&G. While it's 100% commission based for them, the fact they told me its with L&G meant I could look on TCB and see I could get up to £50 knocked off for the year by way of cashback.

Edit: but unlike OP I just went for an initial chat/search. I'm surprised the MA wouldn't request the fee before the mortgage application is done? I thought that'd be the norm