Adverse broker and fees

obc18

Hi everyone. I’m on the hunt for an adverse broker but there’s a lot to digest from a simple google search and I’m wondering what’s the best way to go about finding one? I’d love to ask around but don’t want to tell everyone about our need for an adverse lender!

Also what sort of fees are reasonable? I know a lot of mainstream brokers may not charge a fee to the client per say but we have a complex case - Help to buy with a CCJ 2 years old and one payday loan from last year, all settled - so I expect we will need to pay for the best results. 

Some brokers have said they require a fee upfront just for an AIP, some only want a fee on offer (albeit an extortionate one) and others have said they can add the whole thing to the mortgage. I’m just a little unsure what’s the best way to go. 

Any advice appreciated, many thanks. 

heston2014

Look for whole of market brokers that do not charge fees upfront, only either obtaining a mortgage offer or completion.  Usually the former.  Expect to pay around £500 to £1000 depending on the complexity of your case.  Also, insist on no hard searches as some brokers just submit details for AIP/DIP where some lenders hard search at that stage and the lender isn't the right fit for your case. The would do their research and speak to potential lenders about your case before obtaining an AIP.  They then provide you some figures, if you're happy with it, then you can proceed to full application by which, broker will request a bunch of documents for you to complete e.g. their terms and conditions, privacy, consent to apply and questionaire.
Ideally, obtain a copy of your credit file and send to them before they carry out their research so they can check for any red flags before they approach potential lenders regarding your case.  Good luck.

MovingForwards

Help 2 buy equity loan? 

obc18

MovingForwards said:

Help 2 buy equity loan? 

Yes that’s correct. 

obc18

heston2014 said:

Look for whole of market brokers that do not charge fees upfront, only either obtaining a mortgage offer or completion.  Usually the former.  Expect to pay around £500 to £1000 depending on the complexity of your case.  Also, insist on no hard searches as some brokers just submit details for AIP/DIP where some lenders hard search at that stage and the lender isn't the right fit for your case. The would do their research and speak to potential lenders about your case before obtaining an AIP.  They then provide you some figures, if you're happy with it, then you can proceed to full application by which, broker will request a bunch of documents for you to complete e.g. their terms and conditions, privacy, consent to apply and questionaire.
Ideally, obtain a copy of your credit file and send to them before they carry out their research so they can check for any red flags before they approach potential lenders regarding your case.  Good luck.

Thank you so much for your advice. I’ve been speaking to a broker who charges just over £2,000 on offer which even though we are complex it’s still above and beyond any other fee we’ve been quoted.  

MovingForwards

@kingstreet is H2B specialist, but I've seen him mention about the criteria in relation to adverse credit. Have a look through his posts and see what he has said as you may not be far enough away from the adverse history to be able to access the H2B loan.

£2k is a lot for fees, my broker doesn't touch H2B otherwise I would recommend him.

haras_n0sirrah

2000? That is a lot. We do a lot of help to buy cases. The adverse side of things is just a case of fitting it against the criteria of the help to buy lenders. 

[Deleted User]

That's not a lot of adverse to be honest. 2yr ccj and 1 payday loan isn't something I would class as heavy adverse.  I definitely wouldn't pay £2000 

lunaloo122

I was matched with a mortgage advisor from using online mortgage advisor as I had an adverse credit case. They have managed to get me a mortgage offer from a high street lender and only charges on receipt of offer. It may be worth a look! 

jamielutz1987

@obc18

If you want to try a free adverse option first, you could try getting an appointment with Impact through the Habito landing page (doesn't involve taking to anyone at Habito). Impact waive their usual £500 fee for leads that come to them this way.

Just to be clear, I have no idea how good/bad Impact are, but their Trustpilot reviews look alright.

https://www.mortgagesolutions.co.uk/news/2019/11/08/impact-waives-fees-for-habitos-adverse-credit-customers/

Good luck!

dunstonh

I’m on the hunt for an adverse broker but there’s a lot to digest from a simple google search and I’m wondering what’s the best way to go about finding one?

Most experienced local independent brokers do this sort of thing without the need to specialise in that area.

Be wary of online factory line services.   With staff on targets to do x number of cases a day, they tend to cherry pick the easy stuff.    And be wary of firms that promote themselves as focusing in adverse credit.  A lot of people who think they may have issues go to those types of firms and end up paying very large bills for something that a prime lender would have considered without all the added costs.