Broker or Self Application

FilthyLuka

I'd like to be in control of my application so think it may be better to make a direct application to the lender so they are asking me directly what is needed

otherwise things could be delayed with a middle man

or am i being naive, what would a broker add?

lou-rose

A broker adds their knowledge to possibly get you a better deal, and may have access to other deals.

I applied for mine direct with First Direct, it was pretty easy as far as I remember (few years ago now), the only problem I had was when my house valuation came out a lot lower than expected, so I had to borrow some from my parents to get my LTV.

ACG

I am not very good at dishing work out either, so I can relate to how you think.

The only thing I would say is that if things go wrong, you could find that having a broker on side makes the world of difference.

The bst example I can think of is a client of mine applied to a high street bank, it was declined. For the life of me I could not see why as it was the best choice (the client just happened to apply to them as that was who they banked with). So I managed to convince them to let me apply to the same lender and it was accepted.

Also a broker does not want your case on their desk. They want it submitted, offered and completed. It is one less case on their desk and (as bad as it sounds) money in the bank.

I am not saying you should or should not use a broker, that is for you to decide. But a broker wants what you want, they just want ti for different reasons.

FilthyLuka

Application submitted via the online broker and the questions have started

they asked me to post hard copies of passports, bank statements proof of address directly to them so that they can forward to the high street lender. I dont have any details for my application (e.g. ref no) so I can ask the lender directly.

there seems to be no reason obvious to me why I cant present these documents in branch (to save delays in postage times and to save the obvious risk of posting off all of this potential identity fraud pack to get lost in the post - I would post in separate packages but I am sure that they would return in one)

I cant get hold of the broker to talk too, only an answermachine

If the broker wont give me details of the application or allow me to present the documents in branch where would I stand in halting the application to make my own direct application.

I realise that there would be a second credit check carried out but how much harm could this cause?

minimike2

Your broker HAS to identify you under anti-money laundering / Know your customer rules.

Out of interest, why did you use an online broker who you get no face to face contact with?

I also find it very hard to understand how they plan to ID you correctly in this manner. For me, getting someones passport randomly through the post having never met them just doesn't cut it.

How did you actually complete the application? How was the fact find done? I get the feeling of only half a story here.

FilthyLuka

The broker is the one recommended by MSE so it seems straight forward

Do they have to ID you prior to making the application, I am being told in an email that it is the lender (not the broker) who needs these documents - so it seems that the broker themselves do not need to be satisfied of my identity

The application was carried out over the phone with a couple of photos of documents like payslips requested to be emailed through.

Im unsure what the fact find is.

minimike2

FilthyLuka wrote: »

The broker is the one recommended by MSE so it seems straight forward

Do they have to ID you prior to making the application, I am being told in an email that it is the lender (not the broker) who needs these documents - so it seems that the broker themselves do not need to be satisfied of my identity

The application was carried out over the phone with a couple of photos of documents like payslips requested to be emailed through.

Im unsure what the fact find is.

OK - It sounded from your post like you had filled out a form online and that was it. Phew.

So was it London and Country then?

The broker is under obligation to ID you. They MUST ID you before they can submit an application, yes. I am not familiar with the process L&C have for this. Maybe someone who has used them can share how they went about it.

The fact find is the process of questioning which the advisor will have done with you prior to making the recommendation to you for the mortgage product.

ACG

Brokers HAVE to be able to check your identity. Lenders will take certified copies from the broker. The broker can take certified copies from a solicitor or the post office, however that then defeats the point of making things easier all because you chose an online broker that you cant go in to see?

I said it in my original post, it makes no odds to me if you go direct or not but its almost like you are trying to find issues. You chose an online broker but then want the ability to go in to a branch. If thats the case, why would you not choose a local broker?

I post documents signed for recorded delivery if I have to post them. Never had any problems, I am sure things do go wrong but the chances are quite remote, possibly the same odds as your handbag being stolen in the high street maybe?

FilthyLuka

To clarify, the broker is not asking to see the documents (if they did need to see the documents then surely they would/should have told me this when the details were being collated prior to the application to verify my identity)

The broker is telling me that the lender needs to see the documents

If this is the case surely I can present these to the lender in branch (as is stated on their website for a direct application). But for this I would need the application reference

Do brokers have different methods of making an application to a high street lender than lay people?

Mortgage_Moog

I have limited experience but am going through the process right now so let me give you my view on things.

A broker is only really useful if you are in a weaker position such as having a bad credit score, working on short-term contracts etc. In that case they can help by putting you in touch with a lender that will understand those circumstances.

If you're in a good position with a 10% deposit in the bank, great credit score and looking to buy somewhere well within your means then I see no advantage to a broker.

I went to a broker at first and didn't see any advantage in continuing with them. There was little if nothing they could do that I couldn't do myself. One day I'll type up the whole story.

David_White

FilthyLuka wrote: »

The broker is telling me that the lender needs to see the documents

Both the Broker and Lender are likely to need the ID. The Broker will just take a copy before sending it on to the lender.

I handle 99% of my cases over the phone and require clients to send me certified ID in all cases.

A hard copy of your Passport is no good as how do they know it's you?