Adverse broker and fees

ACG

We dont do HTB, we refer them off to another broker, their fee is £1995 which is chargeable on offer of a Mortgage. 
It is a high fee, comparatively speaking from what you have said our fee would be £999 (on offer). But your case sounds like it could be a borderline high street case.

We specialise in adverse and I can think of times we have got cases through on the high street where the customers had seen other brokers who had plumped straight for the adverse lenders or worse said they could not get a mortgage. Our fees were higher than the other brokers (in one example we were £500 more) BUT we saved them £500 on the lenders fee, £200 on the valuation and god knows how much on the interest over 2 years. £500 extra to us, saved them over £700. Sometimes it may seem that you are paying more but in the long run you are saving money.

My advice especially in the current climate would be to not pay anything upfront and to go with the one you have the most faith in. 

I wrote an article on our website where we saved the customer more than £27,000 over 2 years! That included our broker fee being over a grand lower, the valuation fees being lower, the lenders fees being lower and the interest rate being a lot lower which on a £500k mortgage soon added up. So broker fees being higher is also not a sure sign of getting the best deal either - just to play devils advocate. 

amnblog

1. You don't need to pay £2,000 for the advice you need (or even half that)
2. You need a Broker that does H2B with adverse regularly
3. The less expensive adverse H2B lenders are not interested in much currently. If you do get placed now with an 'active' lender, you won't like the rate, and it may not fit on affordability with the H2B loan.

obc18

Thanks for all your replies. I’ve just had a chat with a broker who is whole of the market but they seemed 50/50 as to whether she could place us. She said the payday loan plus H2B would be the biggest hurdle, didn’t seem so phased by the CCJ. 

Does this sound about right with those of you here that are in the industry?

haras_n0sirrah

how long ago was the payday loan - I have placed some people on the high street with payday loans - it all comes down to what is showing on the credit report

ACG

Its not uncommon for it to be the more minor issue that causes the biggest problem, especially if it is more recent. 

I can think of a time where a bloke was married but wanted to buy on his own. That was the deal breaker for the lender, not the bankruptcy, 5 defaults or mortgage arrears.

haras_n0sirrah

All down to what shows on the credit report but payday loan doesn't automatically mean no lending 

obc18

haras_n0sirrah said:

how long ago was the payday loan - I have placed some people on the high street with payday loans - it all comes down to what is showing on the credit report

Hi, it was just before Xmas. We settled completely in Feb. 

haras_n0sirrah

I will have a look on the criteria guides tomorrow. Just the one pdl?
How much was ccj and when was it settled?

ACG

The adverse lenders criteria for PDLs does vary. Some say they do not mind, others say no reliance on them - so no specific criteria but down to underwriters discretion, others say none in x months. 

I am pretty sure there are lenders out there, but there could be other things that affect the mortgage - you might be buying in Northern Ireland for example or purchase price may be above/below the minimums and so on. 

obc18

Thanks for the reply, we’re in East of England so I think we’re well within the cap. Just these PDLs and CCJ seem to be the spanner in the works. From my research I’m guessing it’s going to be Precise or Aldermore or someone niche like them. But will leave that up to the pros!

Thanks again