Broker producing DIP but choosing to go direct?

scottishgirl87

We haven’t yet found found a house to buy so this is just in theory at this stage. We’ve spoken to a fee-free broker who has given us a Decision in Principle via the Halifax. I’ve just had a nosey online at the Halifax and can see that they’re currently offering £750 cashback which I don’t think we would get by applying through the broker.

Would we still be able to apply to Halifax directly ourselves? Or would they note the fact that our DIP was via a broker and refuse the cashback anyway?

MortgageMamma

Its morally wrong to do so. You've taken the brokers time and expertise, they should be remunerated for it with your mortgage application. Also, if something goes wrong with your application, you could have problems sorting it out by yourself.

ACG

You can go direct.
But your broker may have just got you a DIP with halifax because it is what some brokers do. There may actually be better options out there which the broker will explore when the time comes?

scottishgirl87

Thanks, appreciate what you!!!8217;re both saying. Like I said, it was just in theory at this stage and we will of course assess all options once we finally have an offer accepted

ACG

MortgageMamma wrote: »

Its morally wrong to do so. You've taken the brokers time and expertise, they should be remunerated for it with your mortgage application.

I disagree with this. If the deal was identical then I would maybe agree but it is not the OP fault that Halifax have decided to dual price.

If the broker wants paying for their time, then they should charge a fee and put a contract in place.

As an example, the fees we charge are only chargeable on full offer of a Mortgage. If the customer pulls out after we have obtained a DIP/made a recommendation then we charge an admin fee that covers our time for doing the research.

It is not the OPs fault that the brokers process is lacking. Once bitten and all that, I have had customers do this to me and you change your processes to stop it happening again. There is no point getting upset by it in my opinion.

tori.k

It really is worth talking it through with your broker, our first mortgage set up with the broker had the same cashback on offer same as direct, Ours makes more money on the life insurance side than the mortgage, if yours is fee free then it cost you nothing to check your getting the best deal for your circumstances.
good luck

amnblog

All confusing here from my point of view.

Yes, Halifax are in the habit of occasionally offering different products through their Direct arm than through Brokers. Frustrating for both the Broker and the Borrower and the only Lender I can think of who still does this.

ACG may be right in that the Broker may be seeking to place the lending elsewhere once a property is found. Possibly because Halifax do not currently offer market comparable rates at many of the higher loan to values.

If so, I see no reason why a decision in principle has been run here.

1. What is the need if no target property has been found?
2. If there is a need, why run a DIP with a Lender you probably wont use?

Using the Halifax system as a 'test bed' is not something an experienced Broker does.

Our Poster should..

Decide if she wishes to handle this herself or use a Broker - don't mix and match.

Don't allow further DIP runs until a target property has been found.

scottishgirl87

The reason for the DIP with Halifax is that they are stating they would lend us around £13k more than most other lenders. We’re in an area where at the moment things are typically going 5-10% over Home Report value (Scotland) so we approached a broker to get a better understanding of what our absolute maximum budget is in the hope that we’re successful at the next closing date we end up bidding in.

amnblog

If you are pushing your affordability envelope you will drop the Broker route at your peril.