Getting another mortgage offer after securing one already is it wrong.

ddonq1412

Is it wrong to get a 2nd mortgage offer after obtaining 1st offer. Ill Explain my story. I had a default on my credit report i have cleared it its about 4 years old. and been satisfied for just over 6 months. My current lender Bank of Ireland will not allow me to obtain additional funding if i was to port my mortgage. so has to same same of less value of my sold property( would need to gather 29k if i could port not realistic). I started to look into lenders for adverse credit and got one. i went and got all the checks done sent off my credit report. and was able to obtain a mortgage offer from Halifax but i have to pay the broker 1000 pounds on completion of mortgage. I was recently thinking that i could probably get another mortgage offer via a different broker who dont charge me anything. As i have been saving money for the past 5 months and improving my credit report and feel im in a better financial place at present. Me and Partner earn about 54k between us. we have our existing mortgage off 246 a month. and a paypal debt of 700 pounds. Then a few outgoings like mobile phone contracts , sky, and internet and rates. We have been saving about 600 a month since lock down. that we are using to make over payments to our current mortgage to low the ERC fee we have when we move house.

csgohan4

So a mortgage broker got you an offer and you have to pay fee which you agreed to, but now you want to save money and not rather pay it?.

Bare in mind adverse credit, free brokers may not want your business or are experienced enough to deal with you, like London and Country.

The reason brokers charge more for adverse credit, is the extra amount of work needed and experience as well

beware making multiple mortgage applications, you have been warned

https://forums.moneysavingexpert.com/discussion/6163507/unfair-fraud-markers-placed/p1

The question you need to ask yourself now is, can you really afford a mortgage and home ownership if your scraping the barrel for 1k?  A boiler can cost many times this, a roof well, lets say its not cheap

ddonq1412

Im not saying scraping the barrel for 1k. But i would prefer to have it in my pocket than in someone else pocket. 1000 would be great help towards removal costs and helping towards a new bathroom in new property.

csgohan4

ddonq1412 said:

Im not saying scraping the barrel for 1k. But i would prefer to have it in my pocket than in someone else pocket. 1000 would be great help towards removal costs and helping towards a new bathroom in new property.

put it this way, if you don't pay 1k, you won't have those removal costs or new bathroom as you won't have a mortgage offer,

A free broker may not find you an offer, by all means you can try your luck, but you have an offer in hand and the broker has done their job. 

Putting morality aside of course as it would be a business decision

Did you read the thread I posted?

pearsforlife

Pretty harsh as you knew what the broker’s fees were, basically you wanted to test the water see if you could get an offer and now you have one you think you don’t need the broker.. I mean £1k fee is a little steep but you run the risk of being marked for fraud if you apply for another mortgage on the same house. I wouldn’t be surprised if there is a fee if you withdraw from the deal the broker has secured to cover their costs to date. 

ddonq1412

I have read over the thread you linked into it. I do see where you were coming from. my only change i was looking was the broker. lender was the same and solicitor stayed the same. If covid had not of happened i probably would not be thinking this. I have saved an extra 2.3k in the past few months and reduce my payments of current mortgage. I have cleaned up my credit profile. As you seem to think i am wrong in trying to get the best deal. I have also reviewed  T&Cs of the broker it does not state payment if mortgage is cancelled or not finalized. It was probably my best deal at the time back in February.  

csgohan4

ddonq1412 said:

I have read over the thread you linked into it. I do see where you were coming from. my only change i was looking was the broker. lender was the same and solicitor stayed the same. If covid had not of happened i probably would not be thinking this. I have saved an extra 2.3k in the past few months and reduce my payments of current mortgage. I have cleaned up my credit profile. As you seem to think i am wrong in trying to get the best deal. I have also reviewed  T&Cs of the broker it does not state payment if mortgage is cancelled or not finalized. It was probably my best deal at the time back in February.  

Bare in mind lending criteria has been significantly toughened up  now, so getting a new mortgage with a new lender with a not so perfect credit history may be difficult at this time. 

As mentioned you can try your luck, but looking at products now, the interest rates for me are worse than when i secured my product pre covid and I completed this week on a remortgage. about 1.18% vs 1.78% now

ddonq1412

When speaking to the new broker i advised i already had an offer in place, stated the large fee to pay. they have went to the same lender and the terms are all the same still. Halifax 10 year fixed. at 2.27%. Halifax will refund the valuation fee (200 pounds) once the applications is completed as lock down force the valuation to be delayed so they can actually use the same report for that. 

csgohan4

ddonq1412 said:

When speaking to the new broker i advised i already had an offer in place, stated the large fee to pay. they have went to the same lender and the terms are all the same still. Halifax 10 year fixed. at 2.27%. Halifax will refund the valuation fee (200 pounds) once the applications is completed as lock down force the valuation to be delayed so they can actually use the same report for that. 

Good luck with your application. I suggest in future to use fee free and not waste anyone elses' time spent

Have you looked at the T+C of your previous broker, you may have fees to pay still

haras_n0sirrah

Fee of 1k is high however you agreed to it and they did their job
This is why I charge our fee on full offer not on completion (although mine is under half your brokers fee)
Why did you agree to pay the fee if you didn't want to pay it?
Are you going to offer them anything for wasting their time? It probably takes a good 3-4 hours to submit an application and then you have all the hours on the phone chasing things (halifax hold time about 1.5hours)
If I were you I would offer the 50% of the fee by way of an apology - you still end up better off and the broker at least gets something for their trouble
The new broker hasn't come out of this covered in glory either. 

ddonq1412

at present the new broker i have been speaking with has not submitted a applications they have spoke to me for 45 mins and sent off to email during the meeting to a Halifax rep in regards to the situation.. and then there was a person who did a quick intial meeting.  As  we are chatting about this i feel i should honor the first broker, as they did the leg work. it would not be right if the 2nd broker got the commission from Halifax for the 1st brokers leg work. I just pay the fee on completion and say lesson learned. dont mess up your credit report as you dont know when you will need to use it.