Mortgage Brokers

deegsy

If applying for a mortgage through a broker would you say you have a better chance of being accepted if they have all your docs and go through your income & Expenditure? If someone who they class as 50/50 surely they wouldn't waste there time putting them through an application?
I am waiting for my buyers mortgage to go through as its taking an age, but they are using a broker so should i have a little confidence that they will be accepted?

minimike2

A lender doesn't make a different decision based on what channel the application goes through, they make it based on the facts presented.

The brokers job is to correctly present those facts and to present them to the right lender for the circumstances.

ACG

I think you stand a better chance of getting a case through with a broker.
I think brokers tend to know how to "play the game" with lenders systems. I also think if a case is declined at underwrite stage and a customer calls customer services to find out why the chances of it being overturned are probably not as great as if you have a broker fighting your corner.

I can think of examples I have had where a client has applied to a lender and been declined, I applied to the same lender and had the application accepted.

That being said, using a broker is not a guarantee the application will be accepted.

Debtslayer

When you say buyers mortgage is taking an age, how long has it actually been?
Sonetimes things can seem to be tsking an age when in fact its not actually been that long

deegsy

Hi we accepted an offer on the 21st of Jan, I put our application through for our mortgage the day after and we received our offer on Sunday 14th.
They haven't even booked a valuation yet, I suppose if they do the under writing first then once the valuation is booked it's probably a good chance it will go through!

Thrugelmir

Are your buyers in a rush?

deegsy

I have no idea

dunstonh

Very generally, you find mortgage brokers carry more knowledge and experience than a bank clerk doing the mortgage role for 1-24 months. Experience can make the world of difference on a complicated mortgage or someone pushing limits.

Underwriters tend to discuss things more with brokers. Some banks dont even let the branch staff talk to the underwriters directly.

betmunch

deegsy wrote: »

I have no idea

It may be that their chosen lender is just slow.

Get your EA working for you and get them to find out what's going on

amnblog

Are you saying there has been no sign of a valuation, or that your property has been valued, but no sign of offer?


The most likely cause of delays is:


Tardy response for requests for information by borrower
Information not provided by borrower in the format requested
Lenders have big backlog of work
Complication in the underwriting that the lender is considering


Less likely is:


Broker picked the wrong lender, made an error (brokers deal with Lenders every week and the experienced ones might get caught out on an obscure piece of criteria only a few times a year in hundreds of applications)


The most common cause of delay I see is a borrower who has gone direct to a Lender, been turned down and then come to us at the 11th hour when the vendor has already been waiting 4 or 6 weeks for valuation.


As a vendor, getting to the root of any delay is almost impossible. Put the job onto your Selling Agent.


In direct answer to your original point. A vendor should feel a lot more comfortable with a buyer that is using a broker.


Why?


It's like that old children's game - square pegs and round holes.


If our 'square peg' buyer turns up at a 'round hole' lender, time is going to be wasted and delays caused. A broker spends all day bashing the right pegs into the right holes.