Mortgage Packagers

Size4riggerboots

Hey.

My partner and I are in quite a complicated situation (mainly he’s not a UK resident) and we are working with a broker who suggests he’s found a lender who uses a packager. If (that’s a big if) we get an AIP there’s ridiculous fees to pay. The broker, the packer, the lender. Obviously I knew the broker and lender will have fees but the packager has the biggest fee from them all. Has anyone had any experience with mortgage packagers?

TrickyDicky101

Perhaps it would help if you put some context around your descriptions - how much are you looking to borrow, how much are the quoted fees (split them between the lender, packager and broker). Also, has the broker stated how much commission he will be getting from the packager?

What are your incomes and why is your partner buying in this country if he is non-resident?

amnblog

Thing of a packager as a wholesaler.

Some specialist Lenders only distribute their products through Packagers rather than through the Broker population as they can control the volume and quality of applications that way.

Some Brokers do however, use Packagers to deal with a Lender that they could deal with direct. Why? - generally because they don't have the experience or confidence to manage it themselves.

Packagers fees do vary, and some are quite pricey.

We hardly ever have occasion to use a Packager today.

ACG

As amn says, packagers fees can vary as can the quality of the packager. Some are nothing more than an expensive middle man who bring nothing to the table, others can be as cheap as £200-250 and do offer some benefit.

I only use packagers for one lender and that is purely because I can not access them directly.

Why not ask the broker if there are any other packagers or anything that can be done as their fee is too high? Or speak to another broker. Some brokers do have a tendency to just use packagers as soon as it is anything not "vanilla".

Size4riggerboots

TrickyDicky101 - I’d rather not disclose how much he wants to borrow but it’s more than affordable. The lender requires 0.75% of the loan amount, the broker has a fairly reasonable fee of £650 and the packager requires 0.95% of the loan amount ( excluding valuation fee, AIP upfront fee and whatever else they decide to throw in as a fee). The broker has not mentioned any commission he will get.
My partner is a Captain in the Merchant Navy therefore no chance of residency unless he changes job and works for a few years in the UK. I’m British and was also working in the Merchant Navy but due to the arrival of the twins there is zero chance of me going back to work (shoreside) anytime soon hence why we need a mortgage in his name.
Fees alone are looking like 5k which was higher than expected. In the grand scheme of things we just want a house.
amnblog and ACG- Thanks for your input, experiences with packagers is what I was curious about.

ACG

Size4riggerboots wrote: »

TrickyDicky101 - I’d rather not disclose how much he wants to borrow but it’s more than affordable. The lender requires 0.75% of the loan amount, the broker has a fairly reasonable fee of £650 and the packager requires 0.95% of the loan amount ( excluding valuation fee, AIP upfront fee and whatever else they decide to throw in as a fee). The broker has not mentioned any commission he will get.
My partner is a Captain in the Merchant Navy therefore no chance of residency unless he changes job and works for a few years in the UK. I’m British and was also working in the Merchant Navy but due to the arrival of the twins there is zero chance of me going back to work (shoreside) anytime soon hence why we need a mortgage in his name.
Fees alone are looking like 5k which was higher than expected. In the grand scheme of things we just want a house.
amnblog and ACG- Thanks for your input, experiences with packagers is what I was curious about.

Is the lender Together? They are the only lender I use a packager for. Im sure their fee is 0.75% of the loan amount.

0.95% of the loan amount could be a lot of a little. If a £100k Mortgage it is not the worst I have seen for a packager, if it s a £200k Mortgage then it is very expensive.

Size4riggerboots

I actually have no idea who the lender is... that’s been very hush hush. We are waiting for an AIP. The longest wait. Obviously due to the complexity I need to be patient.
Yes, it’s just over >200k we need!

ACG

I agree then, a £2k fee for a packager is a little too much.
If it is Together then I wont lie, there is a lot of work broker/packager end but £2k is still a lot.

If the rate is between 5-8% it will be Together I imagine.

Size4riggerboots

ACG wrote: »

I agree then, a £2k fee for a packager is a little too much.
If it is Together then I wont lie, there is a lot of work broker/packager end but £2k is still a lot.

If the rate is between 5-8% it will be Together I imagine.

With our situation I guess they know we can’t shop around and take advantage of that unfortunately. It’s business.
Jesus, I know we wouldn’t get the best rate (friend just got 2.7% last week with BoS) but 8% is taking the !!!!.