Execution only Mortgage Broker

PosterBoy77

It might sound like a bit of an oxymoron, but are there any mortgage brokers who are happy to effectively provide an "execution only" (for want of a better term) service for borrowers who already know which mortgage they wish to apply for and just deal with the application for a reasonable fixed fee and rebate any commission or procuration fee?

I wish to apply for a specific BTL mortgage after having studied the lending criteria on the websites of various "broker only" lenders. I don't want or seek any other advice, but I need a broker to make the application as the lender only offers the deal I want via a broker.

I would be more than happy for any brokers on this forum who can or are willing to offer this to send me a PM if they wish.

ACG

You want 2 things combined which are both uncommon - a broker to rebate the commission and charge a fee instead, which should not be an issue in the main.

Execution only could be the problem. You would need to be either a high net worth customer or work within the industry in addition to that, you also need a lender who will accept an application on an execution only basis - not all of them will.

Is there any reason you do not want a broker to do the research? The reason I ask is that fitting criteria is one thing, getting accepted and in a timely fashion is another.

PosterBoy77

ACG wrote: »

Is there any reason you do not want a broker to do the research? The reason I ask is that fitting criteria is one thing, getting accepted and in a timely fashion is another.

I am aware that most BTL lenders have interest coverage ratios of around 145%. I am fortunate enough to be able to control my income so I can remain a basic rate tax payer. This means a few mortgage lenders will allow a reduced ICR of 125% allowing me to borrow a larger amount. Most of the lenders in this category seem to have higher rates, with exception of "the mortgage works". They offer a competitive 5 year rate and I cannot see any which would be cheaper with the same lower ICR requirements for a basic rate tax payer. Obviously going for a 5 year rate also helps as the stress test interest rate applied is a little lower too. I am also not as concerned about the exact length of time it takes, as long as I can get the best deal.

ACG

Fair enough, but 125% of what? Have you compared the rates they work off on that calculation?

Is it a pound for pound remortgage or a purchase?

If a £ for £ remortgage, I have on our spreadsheet 3 banks who will lend based on a calculation of 125% of 4.99%, 125% of 5.5% and 125% of 5.99% (among others).

We also have lenders who will lend at 135% at 3.89% which appears to allow a higher lending amount than the 125% deals.

I am not suggesting you are wrong by the way, but if you allow the broker to do the research, there is every possibility they will come out with the same outcome. If it is a worse product, you can cross reference it with your research, if it is a better product then you are better off. But by allowing the broker to do the research and making a recommendation, you are opening up your options.

Also, just looking at their paper application form, it does not look like they allow execution only - https://www.themortgageworks.co.uk/-/media/TMW/documents/t22-buy-to-let-hmo-and-ltb-application-form.pdf?la=en&hash=02213128A5682C0C5C3557BA3C8B0EF2C1B72923 - page 1 only allows the option of an advised sale.

PosterBoy77

ACG wrote: »

Fair enough, but 125% of what? Have you compared the rates they work off on that calculation?

Is it a pound for pound remortgage or a purchase?

If a £ for £ remortgage, I have on our spreadsheet 3 banks who will lend based on a calculation of 125% of 4.99%, 125% of 5.5% and 125% of 5.99% (among others).

We also have lenders who will lend at 135% at 3.89% which appears to allow a higher lending amount than the 125% deals.

I am not suggesting you are wrong by the way, but if you allow the broker to do the research, there is every possibility they will come out with the same outcome. If it is a worse product, you can cross reference it with your research, if it is a better product then you are better off. But by allowing the broker to do the research and making a recommendation, you are opening up your options.

Also, just looking at their paper application form, it does not look like they allow execution only - https://www.themortgageworks.co.uk/-/media/TMW/documents/t22-buy-to-let-hmo-and-ltb-application-form.pdf?la=en&hash=02213128A5682C0C5C3557BA3C8B0EF2C1B72923 - page 1 only allows the option of an advised sale.

It would be 125% on a 5% rate if I recall. A 135% at a rate of 3.89% would potentially allow a higher amount of borrowing, but in such a case would probably come from a lender charging a higher rate, which would from my point of view not be worth it.

The property is currently not mortgaged, but I wish to raise capital for a further purchase in due course.

It sounds like from what you are saying I should in effect go through the motions of looking at the rest of the market, even though I am pretty sure the deal I have found would suit my requirements very well. I am happy for that to happen, as long as I don't need to pay a premium to probably find out what I know already. This would just leave the issue of finding a broker who will quote a competitive fixed fee and rebate the commission.

amnblog

A borrower having a Lender or even a product in mind is not execution only.

If a Broker agrees the targeted deal is suitable there is no problem.

The problem lives where the Broker does not consider it suitable, explains their position to the borrower, and the borrowers still wishes to proceed.
It then becomes execution only.

This is an issue with a residential mortgage which is regulated, but not for most buy to let mortgages which are not.

I don’t see any problem with handling a situation like this provided the borrower is prepared to listen to any concerns highlighted along the way.

ACG

I think you would find more options if you were open to the broker doing the research, even if it means you end up with the same deal. If it is a different recommendation, you can still discuss it.

We are not very big in the BTL market, I do not like doing BTLs so only do them for existing customers but the last time I did research on one, some of the less mainstream lenders were offering the better rates. I have no idea whether or not that is still the case. You will probably know better than I do from what you have said.

This is an issue with a residential mortgage which is regulated, but not for most buy to let mortgages which are not.

Nothing to suggest it has, but if Mikael has ever lived in the property, it could be an issue.

PosterBoy77

ACG wrote: »

Nothing to suggest it has, but if Mikael has ever lived in the property, it could be an issue.

No, I have never lived in the property. There is nothing to muddy the water in that respect.