Using Multiple Brokers

Guerillatoker

Not sure if I'm asking a daft question here, a bit of background:

I have a rather precarious mortgage situation (Self employed, 1 year accounts, adverse credit) which means that I haven't been all too confident that I would get one.

So, in order to improve my chances and find someone who fits I've spoken to about 5 brokers (both national and local). 1 has told me he cannot help, 3 are due to come back to me this week but 1 has just confirmed this morning via email he has an AIP from one of his lenders (Details to be confirmed in call later today).

So, my question is, how far should I go with each broker before I start to wind them up? (if that even matters?)

Obviously I know it isn't wise to do multiple applications but am I doing the right thing trying to obtain an AIP from as many brokers as I can? Also, when will I see the mortgage offer in a format I can compare against others - when they invite me to apply?


Worth noting I haven't paid anyone yet and I presume I should only pay upon application, or even just opt for a broker who works purely from commission (not sure if I have that liberty in my position).

ACG

Pick a broker based on their confidence of getting you a Mortgage ensuring no fees are paid before you have a full mortgage offer.

Just pick a broker, dont have them all doing DIPs for you, that is what causes problems.

woofdonkey

DIPs dont really mean much so I dont think there is much benefit in having lots of them.

Having been in a similar situation in terms of employment status etc, I would recommend sounding them out on their level of confidence.

We went with a broker who got a DIP at a really good rate but struggled to get the offer and was still struggling with underwriting 6+ weeks. He didn't always give us full updates (presumably buying himself time).

The second broker found a more expensive deal, but was noticeably more confident and efficient and got the deal done in 9 days. He forwarded every message that he received so we could read it for ourselves and generally seemed more open.

Ask them also what their plan B is.

Mortgage_Adviser

The OP is the reason why I wish we charged for our time.

ACG

He/She is just nervous rather than trying to play one off against the other by the sounds of it. Im not sure there is any malice in this one, but I know what you are talking about.

Guerillatoker

Mortgage_Adviser wrote: »

The OP is the reason why I wish we charged for our time.

With that attitude I doubt anyone would pay for your time.


Also you're posting on a forum where the main site's articles suggest seeing multiple brokers. I think it is concerning that you wish for customers to use your services without comparing you against your competitors.

ACG

Guerillatoker wrote: »

With that attitude I doubt anyone would pay for your time.


Also you're posting on a forum where the main site's articles suggest seeing multiple brokers. I think it is concerning that you wish for customers to use your services without comparing you against your competitors.

Its not that so much, the problem we come up against now and again is people asking us to find them a mortgage but they also have 2-3 other brokers on the go. Ultimately that means some of them are doing work for nothing. You also get people who ask us to do the research, find them a lender and then go direct - meaning we have done hours of work for nothing. Put the shoe on the other foot and imagine your boss telling you at the end of the day hes not paying you for that days work after you have done the work.

There is no harm in speaking to multiple brokers, but having them get you DIPs and do work is where it starts to overstep the mark as you are asking people to do work and you are also potentially causing yourself problems down the line. By all means speak to them about your situation, but then choose one broker to do the work - hence why I said going with the one you have most confidence in.

Guerillatoker

ACG wrote: »

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Fair points, I can especially understand the frustration with people going direct. I have been swayed a bit by the fact that brokers have been very keen to speak to me, as opposed to trying to fit me into their busy diary. (Probably influenced by estate agents trying to fill their referral targets)

I suppose I have been viewing them as traditional salesman (I apologise if that characterisation is offensively incorrect) and I wouldn't have felt particularly rude wasting a salesmen's time by listening to his pitch and going through the motions before deciding not to purchase.

Following your advice I think the broker who has been proactive in getting me an AIP swiftly without beating around the bush regarding contracting and adverse credit is the one who has inspired most confidence.

ACG wrote: »

causing yourself problems down the line. By all means speak to them about your situation, but then choose one broker to do the work.

What would be the problems down the line? Do you mean regards to my credit file?

ACG

Historically financial services was a bit salesy and full of dodgy people but it has cleaned up massively and there is an element of sales in our job but we are heavily regulated and our job is far more than finding the cheapest deal.

If you have 2 (or more) brokers interpreting your information differently when doing a DIP/application when it gets recorded on the fraud detection systems, it can look dodgy. So best to stick with one person unless they prove to be useless down the line.

amnblog

Clearly, no one will want to entrust their situation with a Broker until they feel comfortable with them.

Therefore, we all get approaches from borrowers who either have already spoken to other Brokers, or intend to. That is clearly a matter for them.

A borrower however, who has more than one Broker actively working on their case and running credit scores with Lenders, has benefited no-one, and potentially caused themselves harm.

The onus is on the Broker to ensure that the borrower is not submitting multiple applications through multiple sources. As an experienced Broker I can nearly always tell when the borrower is doing this, or intends to do.

A Broker who does not check for this is an amateur, and they and the borrower deserve each other.

cjv

After 2 weeks of no progress, I informed my first broker that I would have to get someone else to look at my case, before I went ahead and contacted a second.

It just felt like the right way to do things, even when I was very unsatisfied with his efforts.