Is this expected with London & Country (L&C) Mortgages

smub99

So ive been using L&C as FTB to get my mortgage application through. Just a bit of background - My financial situation is a little complicated, I have been self employed for the last 2 years only, and was previously employed, so only have 2 years worth of tax returns. I’m also at 95% LTV. I was previously using a local broker, who actually got me a mortgage offer last year, unfortunately the sale fell through. I returned end of last year requesting a larger mortgage so we could expand our search. THe local broker only found one lender whose affordability criteria and the rate was 3.04% on a 2 year fix. At that point I thought I would get a second opinion.

Following a few recommendations I decided to go with L&C. I knew as a larger company I wouldn’t get the same personalised service, but was hoping they would have access to a few more rates. SO all started fine, was assigned an advisor, who swiftly found me a better rate, and slightly larger loan and had the AIP sorted within a few days. I was a little surprised at the lack of information she needed - the local broker seemed to need a lot more information, however I just thought they were likely operating in different ways. L&C are also recommended by my professional trading union, so presumed they are used to dealing with people in my financial situation so didn’t need all the information the local broker needed.

So eventually found a house and had the offer accepted. The AIP said I could be lent upto £401500, but the offer I had accepted was lower, so only need £389500, with the 5% deposit, so my hope was things would go smooth. I had the offer accepted a week ago. I spoke to my advisor on the Monday and she provided me with her mortgage recommendation on the Tuesday, communication all fine up until this point. I accepted her recommendation and she said she would have a response with me from the lender by the following day to confirm I have met their affordability.

Didn’t hear anything the following day, which was the first time she had not called when she said she would, but I thought nothing of it as she may have been busy etc. Left it most of Thursday but still had not heard so thought i would call to check everything ok. She then says theres a problem because my income from 2017/18 was lower than I had declared, because she thought I was fully self employed at that point, when I was partially employed and partially self employed. In fairness to myself I was never asked this. This was part of the information gathering that my local broker did obtain, that she didn’t. She then said she is using my projections for 2019/20 and discussing the another similar lender and will get back to me yesterday. Of course I did not receive a callback.

Now I don’t know if I am being an over anxious FTB, but I seem to be encountering more hurdles than I did with the local broker, and my financial situation was worse - I only 1 year accounts, my earnings were also lower than now. Ive also read on the forums people commenting that if L&C encounter a slightly tricky situation they will put you at the bottom of the priority list. Is this is what is happening to me, or is this to be expected with L&C? Should I cut my losses and and go back to my local broker or wait until next week? I’m not receiving any pressure from the seller at this point as its been only a week. Would like to hear others experiences, and whether this is to be expected.

(Sorry thats turned into a bit of an essay)

[Deleted User]

Yes, it's the expected level of service from L&C on anything which isn't absolutely straightforward.

It's their main USP.

haras_nosirrah

This is the problem with a broker that only want straight forward cases as anything else isn't profitable. By charging a modest fee we can limit the work we take on and not chase the easy deals.

There are lenders who will work on latest year self employed rather than an average

amnblog

In ditching your original Broker to approach another you are relying on Broker 2

1. Having access to suitable products or lenders that Broker 1 does not have access to, or

2. Being more knowledgeable or experienced that broker 1

3. Broker 2 being more thorough

If you consider the situation

1. Is rare

2. Possible but rare and not to be expected from a high volume broker

3. Rare, as the Broker wants to get you a result and a good one for their needs as well as your own

Go back to Broker 1 as Broker 2 has missed a trick here

csgohan4

A broker who doesn't garner info at the beginning or ask for your credit reports is not a good broker imo.


Broker 1 asked more info to match you to a lender for you. Simply making assumptions wastes credit searches on your file which broker 2 seems to have done... Face palm moment


L+C are a conveyor belt service, they only deal with easy cases, anything outside of the normal, your banking on your luck.


Why risk one of the most important things in your life to a cheap firm? you get what you pay


It's not just about rates either, it's about getting you a confirmed offer as well in a timely manner. Going for the lowest rate can mean a very strict underwriter and take some time

smub99

Thanks for the feedback. The main purpose for going for L&C was to get a second opinion as oppose to going for anything cheaper, as the local broker was fee free as well. I suppose I was naive about their processes. Luckily I haven’t told my local broker I no longer need their services, as far as they are concerned I am still looking for a house.

I’ll give the L&C advisor a call on Monday to see if there has been any progress, if not will be telling them to close my file and going back to the local broker.

csgohan4

Playing brokers against each other is bad form as well. It may hurt your credit history as well with multiple AIPs being applied for. Stick to one

smub99

Thought I would post an update on how things panned out. So following what was said above I ended up having to chase them up on the Monday as never heard back unsurprisingly. I then received the news I was expecting - the L&C mortgage advisor decided that they could no longer help as I suddenly no longer was reaching affordability for any of the lenders and she seemed perplexed as to how my other broker had managed to find any deals. I was annoyed but not exactly surprised, and did not want to waste any further time with L&C, so went straight back to my other mortgage broker. The amount of work and effort he put in was like night and day, and after much struggle I managed to get an offer from TSB 2 weeks later and things are now moving forward. 

I think what annoys me the most is that they gave this generic decision in principle and made it out like I had several options. In reality they had not even spoken to a lender until after I had received the offer. Is this even allowed? Surely for them to give a decision in principle they should have spoken to a lender? I don’t understand how they are allowed to give mortgage recommendations prior to discussing with the lenders. I think had this been back last summer during my first attempt at buying a house (which fell through) I could easily have pulled out as I would not have known any better. Lesson learned though, L&C certainly aren’t the broker for anyone with remotely complicated financial situation. 

Whats_your_forte

Good to hear but you are preaching to the converted here 

csgohan4

you get what you pay for, they only do the easy ones, that's their business model