Fees???

Rachel_Pierson

haras_nosirrah wrote: »

The point is though that brokers are very regulated. If a broker gave the client rates, payments etc without knowing their salary, circumstances and financial history they would be crucified by the regulators. Let the op do their own research and consult a broker to consolidate their opinion. if you want to tell people who to go to for their mortgage do the many many exams to get to professional status and then you can do it. If the op acted on your advice and wasted hours of their time and made their credit worse with unnecessary checks then they have no come back.

Has anyone suggested otherwise? What I said was that they don't have access to the whole of the market. So their interests and the borrower's won't necessarily align, even if they are the most competent and honest Broker in existence. If there's a cheaper deal they don't happen to be able to make a commission on, listening to them rather than doing your own research would still cost you money.

I do agree with your comment that borrowers should, as a minimum, "do their own research and consult a broker to consolidate their opinion". Provided only that it doesn't cost them anything if the Broker's advice is not taken. A broker shouldn't be their first or only port of call. Most people will only need to do that once to realise they can usually get a better deal themselves than by accessing the subset of the market any given Broker has access to.

Even those with poor credit histories (who appear to be the target demographic for many Brokers going by the preceding posts) will realise that Brokers don't have a magic wand to wave to make deals available. You either explain what went wrong like an adult and a lender will give you another chance, or they won't. Mostly they will, if they believe you are now a better risk than before. It's as simple as that.

haras_nosirrah

Not just adverse credit. And it is usually computer says yes computer says no. It is about knowing which lenders computer is likely to say yes at the best rates possible

Benefit income - who uses it at all, who uses some but not others, who uses only child related if mortgage term is under child turning 18, who uses 100%

Foreign national - some need permanent right to reside, some need a visa a certain length, some need a certain type of visa, some need client to have been working in the UK for a certain period of time

Self employed - some lenders use three years, some two (so better if someone had an awful year three years ago) some one, some will accept a projection from an accountant, some will go off dividend and salary, some are net profit

Commissions and bonuses - some lenders look at latest 3 months only, some want two years history, some accept 50%, some 100%

Childcare - some lenders don't take it as a commitment, most do

Interest only, term into retirement, adverse, shared ownership, right to buy, houses with non standard construction... The list goes on

If you are buying a house with a 40% deposit at 3x salary which is the same every month and have the time and inclination to do the research, take documents down to the branch and spend 3+ hours on the phone to a bank then you probably don't need advice. If your circumstances are in any way different then paying for advice may well be worth doing.

amnblog

Rachel_Pierson wrote: »

Brokers don't have a magic wand to wave to make deals available.

That will come as a surprise to many of our clients this year who have benefited from our 'magic wand' having come up against closed doors with numerous lenders.

csgohan4

Rachel_Pierson wrote: »

Kind of proves my point, no?

Not in the sense. In fact the opposite. I am sure you are aware HSBC are very strict on criteria but you wouldn't have known that if you didn't go through a broker. Certainly not with defaults lol.


Also they are now available through brokers now.


I think you can take your outdated advice and go somewhere else frankly, your advice is unhelpful at best and misleading


Looking at your posting history, you applied for a First direct mortgage which you have an Offer/AIP and now your applying for a Santander mortgage lol great for your credit file isn't it??? Don't forget the 'Scrappy' search earlier in this thread. You clearly know what to do.

csgohan4

Rachel_Pierson wrote: »

Even those with poor credit histories (who appear to be the target demographic for many Brokers going by the preceding posts) will realise that Brokers don't have a magic wand to wave to make deals available. You either explain what went wrong like an adult and a lender will give you another chance, or they won't. Mostly they will, if they believe you are now a better risk than before. It's as simple as that.

You have more of a chance of getting a mortgage offer with poor credit histories going it through brokers than going it Rambo style like you. It is not one size fits all. Not everyone has the same credit history as you do they?


Lenders don't give chances lol, you either pass or fail their affordability checks. You will never know their rules as it is commercially sensitive, but an experience broker will have sent people through them enough to know what they like an don't like.


Your advice from 2001 is really updated, are you aware of the MMR rules and upcoming tightening of rules for mortgage lenders?

Malmo

I'm not a broker/advisor and have no connection to the financial markets in any context, yet I recognise that the advice and arguments of @Rachel Pierson are flawed. Other contributors have already stated various reasons why, so I'll not waste my time recycling any of it.

@wantahouse, to answer your original request and to re-focus this thread, you may find this MSE article useful in explaining what typical fees may be payable and at what point in the process they may be due.

Rachel_Pierson

Malmo wrote: »

I'm not a broker/advisor and have no connection to the financial markets in any context, yet I recognise that the advice and arguments of @Rachel Pierson are flawed. Other contributors have already stated various reasons why, so I'll not waste my time recycling any of it.

@wantahouse, to answer your original request and to re-focus this thread, you may find this MSE article useful in explaining what typical fees may be payable and at what point in the process they may be due.

No, don't do that. Because that would be following my advice to do your own research. And, whatever you do, don't listen to the part of the referenced article that states "Beware brokers who ask for the fee upfront, as with most fees paid in advance, you could lose it if you later decide not to go ahead."

Matt_L

Anyone recommend a good mortgage broker in the Manchester area:D

Peco141

I usually always go for a mortgage with no set up fees. I was looking on the Mortgage Best-buy page and can't seem to get a single mortgage offer without a set up fee. What's going on!?

cancel that, just sorted by set up fees and got the zero ones. :-)