Mortgage broker - ask me anything

FataVerde

I have just received the Client Agreement from my mortgage broker and there are some differences between the agreement and what we discussed over the phone.

The first refers to the timing of the fee payment: The broker told me over the phone they have a fee they charge on completion, but the agreement says: "For carrying out a full factfind, assessing your needs, researching a suitable lender and providing a recommendation, we charge a nonrefundable fee of £250 which is payable on application." and "Please note our fee will still be charged should the lender reject your mortgage application due to you not disclosing any material information about your personal situation. It should also be noted we do not provide a refund should you decide not to proceed with the mortgage loan after we have made a recommendation to you."

Then at the end of the agreement "I/We are aware of the costs of the services and agree to the amount and timing of these. My/Our preferred method of paying these costs is (please tick as appropriate); By direct payment OR (where possible) By inclusion on the mortgage"

The second disagreement between the agreement and phone conversation concerns the the lenders they can get mortgages from. The broker told me he can get my a mortgage from any lenders, including advising on direct-only offers. But the agreement says: "We are independent mortgage advisers and we will recommend a mortgage product that is suitable for you following an assessment of your personal needs and circumstances. This will include a detailed assessment of affordability. We will consider all products and lenders that we have access to. This means we will not consider those lenders that are only available by you going direct to them."

My questions:
1. Should I ask for the client agreement to reflect our conversation, i.e. that the fee be charged on 'completion' or is it the same as 'application'? The way I read it is that I would pay the fee even if I am denied the mortgage. I am happy to pay the charge, but on being offered a mortgage. I have a large deposit (40%) and good credit score (no debt but also no history of credit payment)

2. Would you recommend choosing to include the fee in the mortgage or direct payment? Does this affect whether I will only pay on completion vs application?

3. Can anyone explain what "We will consider all products and lenders that we have access to" means? Is this "whole of market" and is this the widest access?


Thanks! I'm not that great at legalese.

Fkhan95

Hi,

Quick question - I’ve got a DIP from HSBC but I’ve just realised I’ve got a missed payment from October 2016.
 I can’t even remember what it was but it must’ve been a small amount. 

 I haven’t got any other negative marker on my credit report. Would this be problematic with regards to a mortgage application? 

Thanks for your input.

clairelourow

Do you have any experiences of Coventry bs? First time buyers about to put a full app in through our broker, it’s below our Max affordability by a large amount and all commitments are always paid on time, im a worrier in general so convinced something will come up and it won’t work out 🤦‍♀️ 

K_S

Fkhan95 said:

Hi,

Quick question - I’ve got a DIP from HSBC but I’ve just realised I’ve got a missed payment from October 2016.
 I can’t even remember what it was but it must’ve been a small amount. 

 I haven’t got any other negative marker on my credit report. Would this be problematic with regards to a mortgage application? 

Thanks for your input.

@fkhan95 If you've passed the DIP, I wouldn't worry too much about a single 4.5 year old missed payment.

K_S

clairelourow said:

Do you have any experiences of Coventry bs? First time buyers about to put a full app in through our broker, it’s below our Max affordability by a large amount and all commitments are always paid on time, im a worrier in general so convinced something will come up and it won’t work out 🤦‍♀️ 

@clairelourow My experiences do not really matter in your specific case but fwiw they're decent lenders but I mostly use them for low income 5x lending which very few other lenders do. I'm sure your broker has done the necessary due diligence before recommending Coventry. Good luck!

Bobthebuildercanyoufixit

our payday loans have all been pqid off and wer paid off immediately within a month each time they had been taken out. We do not have any defaults nor missed payments. The payday loans usage was approximately 4 each within the last 2years from lending stream and just the one from quickquid (nothing in the last 5months regarding payday loans- all before this time)

We are looking to give a 10% deposit. Our household income is 56k and the property is £225000. We have a high DTI of 42. Our credit score is 'good' on check my file we both have a score of 812

With all this information Do you think Natwest is a good option???

K_S

Bobthebuildercanyoufixit said:

our payday loans have all been pqid off and wer paid off immediately within a month each time they had been taken out. We do not have any defaults nor missed payments. The payday loans usage was approximately 4 each within the last 2years from lending stream and just the one from quickquid (nothing in the last 5months regarding payday loans- all before this time)

We are looking to give a 10% deposit. Our household income is 56k and the property is £225000. We have a high DTI of 42. Our credit score is 'good' on check my file we both have a score of 812

With all this information Do you think Natwest is a good option???

@Bobthebuildercanyoufixit I wouldn't want to second guess your broker as they would have considered a lot more information than just the above when placing the case and recommending NatWest.

There's nothing evident that I can see which doesn't meet NatWest criteria so hopefully it'll go through. Good luck!

Scorpiogal13

K_S said:

@scorpiogal13

1. It's a fairly straightforward process and usually would involve submitting a fresh DIP. As a broker, most lender systems will allow me to copy over most of the information, not sure how it works direct.

2. I can modify the DIP and re-run it with the new numbers. Most lenders will allow 2-3 re-runs before a fresh credit-check is required.

Thank you.

By the way, i've sent you a direct message.

Walesgirl

Hi, do the mortgage lender require proof of 3 months mortgage payments on application like Kensington? 

Rebecca01

As a Broker how long does it take you or admin to fill in a full application on the mortgage portal?