Need to give a Rant

UK007BullDog

Right now I am really depressed and its because of the customers I see every day in my bank. So many are in great debt and some behind in their mortgage payments. My customers tell me that they thought they were on fixed rates of 2 or 3 years, but in truth they are on either short term discounted trackers or plain trackers of 3.35% above BOE base rate.

I see customers with lenders like London Mortgage Company, or SPML and when one tries to call the lender one cannot even get through to them because the line cuts off or some tape runs stating that the lender is so busy that they will not answer any calls.

At first I thought that my customers tell me porkies but a particular brokerage is mentioned quiet often and reading the key facts shows that it was a non-advised case but the customer insists that the broker advised them to take a particular product. How can someone sell a 95% mortgage of £185,000 when the person is just on £18K with 3 small kids and a wife not earning either? On a rate of around 9.39% as a tracker. He cannot afford the mortgage anymore as he has come off his 6 months discounted rate. But I cannot re-mortgage as income don't fit plus he has a penalty of nearly £10K to get out of it. Customer insists that on the key facts he was told the initial £850 ish are fixed for 3 years. now he is nearly paying £1400 per month.

If I see 10 customers 7 of them are there to consolidate debt.

My other bugbear right now is with lenders who are not letting customers off their SVR. I have customers who are unable to move lenders and the lender refuses to put them on better deals. This is not treating customers fairly!!!!

Another thing I have noticed that those lenders who do not have a high street presence let their customers fall into SVR after their deal has finished. Another way of money grabbing as they do not have a retail sector to fall back on if they need cash. Again not treating customers fairly!

I have not been round lately due to too much work and my studies. But I just had to come on here and give myself a chance to rant. That particular brokerage which seems to have lots of customers mis-sold needs to be reported to the FSA. I cannot believe that all customers have selective memories. Plus these customers all paid up to 3% fees as well, some with excellent credit scores but still put with a sub-prime.

And then don't get me started on the insurances sold to customers. Like the Buildings and Contents to a man who has a flat, for goodness sakes. Told him to claim the buildings back as he overpaid big time as his lease covers him.

Not a happy adviser right now!

lynzpower

Another thing I have noticed that those lenders who do not have a high street presence let their customers fall into SVR after their deal has finished. Another way of money grabbing as they do not have a retail sector to fall back on if they need cash. Again not treating customers fairly!

I didnt think it was just the non-high st lenders that did this. My old mortgage wih the Abbey reverted to the SVR after the fixed term ended. this was illustrated clearly to me in the factsheet and also told to me by my advisor.

I thought all lenders did this

UK007BullDog

I think you misunderstood me or I did not make it clear enough. All mortgages default at the end of their respective deals to SVR. My rant is about those mortgages where the lender refuses to give the customer a new deal.

For instance: Customer bought an ex-local council flat on the 10th floor. Its concrete. LTV is 55%ish. Customer was on a 5 yr fixed. Come off it and went on to SVR. No letter to advise and warn them on the fact that they will be on SVR now and what the rate is. Not enough money in the account and the mortgage payment gets refused. mad scramble by the customer to find a better deal. No one will lend on the property. Customer goes back to lender and asks for a new fixed deal. Lender refuses stating because they no longer lend on properties like that they cannot offer a product. Customer is trapped on SVR because no one will lend. He cannot sell either. He is not allowed to release equity to buy himself a new place and to rent it out. TOTAL MADNESS and I would not have believed it if I did not speak to a rep at that lenders myself to help customer.

Another example: customer bought concrete maisonnette a few years ago encouraged by the council. (I saw the letters and it all sounds too good to be true). Deal has now ended, customer wants to remortgage for a new deal. Lender refuses as in the meantime council has condemned the properties and stated that they will rip them down to make way for some new development. But council will not say when it will all kick in. So lender will not renew a deal and other lenders wont touch it.

In both cases the lenders are treating the customer not fairly in my opinion, because the mortgage is already with them so why not give the customer a new rate instead of leaving them in a very high SVR???? What is the point as the property is with them anyway? Its just plain highway robbery and money grabbing.

homer_j_3

The job gets like that sometimes, frustration with things outside your control. Mine is lenders saying one thing and then denying that they ever said it but its an unfortunate part of the job.

Lenders will price products when they launch and especially the shorter fixed rates with the assumption that a % of the book will be too lazy to move onto something better.

It doesn't seem right that people with good credit ratings were put on sub prime deals other than if the income stretch was needed or self cert was required. Again, this is another frustration that there are people in the industry that will be prepared to do this kind of business and take advantage of peoples lack of knowledge.

The FSA does need to crack down on rogue traders as such but how can they unless they catch them in the act as 9/10 they will have the paperwork signed and sealed to reflect their story and not the customer (realising that the customer - will never really understand the future implications of either not speaking up and challenging or just being so focused on getting the mortgage)

Remember that this job is like a rollercoaster that never ends, plenty of ups and downs!

UK007BullDog

I dont know and maybe I am just being too soft and take my customers problems too much to heart. Plus the fact that my bosses say I spend too much time with those type of customers and should not bother seeing them. But I feel I open customers eyes and actually help them by giving them the tools to find light in a black hole.

The ones that really affect me are the pensioners on huge mortgages who are simple minded and never realised that all they had was interest only mortgages and cannot afford the payments anymore and have to sell up or live with family. Or where the family tricked them into remortgaging to release equity for them and then do not pay back the money as they are also struggling with their mortgage.

It really is affecting me and I am speeding up my studies so that I can move into another area and no longer do mortgages. I just dont know.

UK007BullDog

homer_j wrote: »

Remember that this job is like a rollercoaster that never ends, plenty of ups and downs!

Well right now it feels more like a real downer and no ups in sight. But thank you for your comments.

lynzpower

thanks Bulldog, I did misread your point.

I was an estate agent earlier in the year ( feb/march/april) and at the start of me working there, there were 4 known lenders who would lend on a concrete block of flats that we were selling in.Suddenly one pulled out of concrete altogether ( cant remmeber which one it was) and HSBC said they would only mortgage (iirc) a 50% cash deposit on a 200k concrete build split level flat in one of the worst areas in london it beggars belief doenst it)

So anyone in that block whod been encourged to buy these off the council suddenly have thier options reduced massively in terms of remortgaging, and they cant offload them as hardly anyone will lend on them.

I feel your pain , it must be tremendously frustrating.

MortgageMamma

Hi Donna you seem really down. I've had a few weeks getting wound up by various things similar to what you mention. Its really hard to stay positive in this job when you have high principles and really give a damn about the clients in front of you. Sometimes I feel like a sponge soaking up all my clients problems and then I take them home and feel down. and then the clients remortgage or whatever completes, and I know they will be ok and I get a buzz. its the unhelpables that get me down, and for some reason I seem to be getting a lot of adverse work in the last year

Keep your chin up and focus on all the good you are doing. It sounds big headed but our job can make such a difference to peoples lives.

poppy10_2

To be honest, I have little sympathy for those to ignorant to read the small print before making one of the biggest financial decisions of their lives.

Jonbvn

One of the positives you can take from this is that MSE is specifically aimed at people gaining a better understanding of their finances. Hopefully, they will be able to make better decisions as a result of this, particularly with regard to mortgages, which as you say are most people's largest financial commitment.

Spread the Word!

Dan_Collins_2

Hi Bulldog

I used to work for a lender for unsecured and secured loans, the clients could not afford them and the I also had to collect the money if payment were missed. I left the job after 6 months as I am to soft. I have now hardened up a little, not to much but a little, it took me a few years but I have.

What people forget (FSA one of them) is this is business, they dont have to lend money and they lend money to make money not to keep ppl happy.

Those people you are dealing with have signed on the line without understanding what they are signing, who's fault is that? I say both parties need a clip around the ear, the lender is taking advantage and the client is being lazy!

The building ins thing better be checked out as I assume you did not check the lease to ensure he was covered?? If it is a share of freehold and peppercorn lease then he may need it.

I agree lenders like you say, need to be given some hassle by the FSA, rather than sending my network poxy lists on how to treat my client fairly they should be doing the same with these lenders. However lenders do not have to offer deals after the fix/tracker ends and they cannot stop a client paying them off. If the LTV is ok then they will get a mortgage.

Maybe you should find a local broker who you trust that you can refer these ppl to. You will be surprised whats out there.

This fair ground ride is going to get harder before it gets better so I would take a step back from your clients problems, not to much but it is obvioulsy playing on your mind and it should not be, you are obvioulsy a good advisor and should be proud of the way you conduct yourself!

About the broker company you mentioned, you can call the FSA and whistle blow so to speak and not give your name, so just do it. We need these ppl outof our industry, it they who have made out job harder in the first place.