Mortgage broker - ask me anything

retepetsir

haras_n0sirrah said:

retepetsir said:

We had a DIP completed last week and completed the mortgage application on Friday, however I've since found out that the mortgage rates increased by 0.3% on the Thursday.

Am I right in assuming that we don't have the lower rate secured as the DIP doesn't hold this for us? Very frustrating!

You would get the rate at application. You should have got a kfi confirming what product you have applied for

Thank you. I received an Illustration but only valid for that date, so no doubt the new one will be at the higher rate. There was a 2-3 day delay for them to send the forms to complete, which is probably explained by the rate increase on Thursday morning (forms received Thursday midday)!

haras_n0sirrah

That's a shame
 Which lender? 
Was this via a broker? We have to email the kfi and ask for permission to proceed from the client before we can submit an application so I am slightly surprised if you dont know what rate you have actually applied for - you should.

GN2020

haras_n0sirrah said:

Brokenlynx said:

I've spoken to a mortgage broker on the phone and given them some initial details about my situation: I'm a first time buyer, looking to spend around £350k in London with no dependants nor debt issues and able to go in at a 90% LTV. 

One question I'd asked was how the broker gets paid the answer I got was: 

"We get a fixed fee from you of £500 once a mortgage offer has been made from the lender"

Given my somewhat limited understanding of what a broker does this does seem like a good deal, they do the searching potentially getting me better rates or a larger loan than I could myself all for an amount of money that is a very small amount of the overall initial transaction.

However my problem is that £495 sounds quite low for what the broker gets here...should I be thinking more holistically about what kind of service the broker offers? Would this be the kind of volume broker that really isn't that interested in my particulars and really needs to get as many of these £495 transactions completed per month? And with that in mind, if I'm capable of doing so would it be worth:
a) paying more for a broker that potentially offers a wider service? (let me know what the benefits would be if this were the case) 

b) just doing the search and paperwork myself using one of the many online comparison sites where (based on the initial mortgage product sent back from the broker) I can get a comparable deal

The short version of this question is, what am I really getting for my money and is it always worth it?

As a guide I typically charge on formal offer £399 for straight forward, £499 for mid adverse and £599 for heavy adverse/ ltd company buy to let/ expat (complex stuff)
We do also get paid by the lender. 
What someone using a broker wants to know is
Is the broker whole of market?
Do they answer calls and respond to emails in a timely manner?
Do they know their stuff?

What you want is a broker who adds value to a transaction. What you dont want (but often find with conveyor brokers which is the issue I have with l&c) is brokers who effectively add an extra layer of delays. If it takes the broker 3 weeks to come back to you in an environment of increasing interest rates and disappearing products at 90% it will cost you more for a free broker who delays than a fee charging broker who can get the job done.

I have just taken on a client who was going to use trussle because they were free until I pointed out that the product they had recommended (nationwide) was a) £1500 more expensive than the one I was suggesting and b) nationwide are so delayed they are unlikely to get a mortgage offer until 2021 so best avoided unless you have no choice but to use them.

I may be biased but I think a good broker adds value to the transaction if you get one who is responsive. The main thing we can do is avoid the lender queues in trying to go direct (I have heard it can take a month to get an appointment to go to the lenders direct- I do an aip within 24 hours of having all the docs required to do so) and also it can take 1 hour plus to get through to a lender for updates and we know the best way to present a case to a lender to maximise the chances of success. Whether you feel that service is worth paying for is up to you.

I hope you don’t mind me butting into this ever so slightly, it’s just what you mentioned about nationwide that I’ve got a question about. 

Is that new applicants unlikely to get an offer until 2021? We had our full application submitted via a broker on 18th September, we’re still waiting on a decision. 

haras_n0sirrah

GN2020 said:

haras_n0sirrah said:

Brokenlynx said:

I've spoken to a mortgage broker on the phone and given them some initial details about my situation: I'm a first time buyer, looking to spend around £350k in London with no dependants nor debt issues and able to go in at a 90% LTV. 

One question I'd asked was how the broker gets paid the answer I got was: 

"We get a fixed fee from you of £500 once a mortgage offer has been made from the lender"

Given my somewhat limited understanding of what a broker does this does seem like a good deal, they do the searching potentially getting me better rates or a larger loan than I could myself all for an amount of money that is a very small amount of the overall initial transaction.

However my problem is that £495 sounds quite low for what the broker gets here...should I be thinking more holistically about what kind of service the broker offers? Would this be the kind of volume broker that really isn't that interested in my particulars and really needs to get as many of these £495 transactions completed per month? And with that in mind, if I'm capable of doing so would it be worth:
a) paying more for a broker that potentially offers a wider service? (let me know what the benefits would be if this were the case) 

b) just doing the search and paperwork myself using one of the many online comparison sites where (based on the initial mortgage product sent back from the broker) I can get a comparable deal

The short version of this question is, what am I really getting for my money and is it always worth it?

As a guide I typically charge on formal offer £399 for straight forward, £499 for mid adverse and £599 for heavy adverse/ ltd company buy to let/ expat (complex stuff)
We do also get paid by the lender. 
What someone using a broker wants to know is
Is the broker whole of market?
Do they answer calls and respond to emails in a timely manner?
Do they know their stuff?

What you want is a broker who adds value to a transaction. What you dont want (but often find with conveyor brokers which is the issue I have with l&c) is brokers who effectively add an extra layer of delays. If it takes the broker 3 weeks to come back to you in an environment of increasing interest rates and disappearing products at 90% it will cost you more for a free broker who delays than a fee charging broker who can get the job done.

I have just taken on a client who was going to use trussle because they were free until I pointed out that the product they had recommended (nationwide) was a) £1500 more expensive than the one I was suggesting and b) nationwide are so delayed they are unlikely to get a mortgage offer until 2021 so best avoided unless you have no choice but to use them.

I may be biased but I think a good broker adds value to the transaction if you get one who is responsive. The main thing we can do is avoid the lender queues in trying to go direct (I have heard it can take a month to get an appointment to go to the lenders direct- I do an aip within 24 hours of having all the docs required to do so) and also it can take 1 hour plus to get through to a lender for updates and we know the best way to present a case to a lender to maximise the chances of success. Whether you feel that service is worth paying for is up to you.

I hope you don’t mind me butting into this ever so slightly, it’s just what you mentioned about nationwide that I’ve got a question about. 

Is that new applicants unlikely to get an offer until 2021? We had our full application submitted via a broker on 18th September, we’re still waiting on a decision. 

Nationwide as a lender are hideously backed up and should be avoided unless you have no other option (90% or tied into them)
I have had two mortgage offers from them this week- the applications were submitted in August. One had a slight delay due to needing a certificate for survey, the other one only had one query come back which we answered straight away (but as it was a refer on aip it was in the 19 working day queue)
If you started 6 weeks ago and have not had a decision then people starting now will be at the same point the week before christmas hence why I am saying they are unlikely to get a mortgage offer before the end of the year 

GN2020

haras_n0sirrah said:

GN2020 said:

haras_n0sirrah said:

Brokenlynx said:

I've spoken to a mortgage broker on the phone and given them some initial details about my situation: I'm a first time buyer, looking to spend around £350k in London with no dependants nor debt issues and able to go in at a 90% LTV. 

One question I'd asked was how the broker gets paid the answer I got was: 

"We get a fixed fee from you of £500 once a mortgage offer has been made from the lender"

Given my somewhat limited understanding of what a broker does this does seem like a good deal, they do the searching potentially getting me better rates or a larger loan than I could myself all for an amount of money that is a very small amount of the overall initial transaction.

However my problem is that £495 sounds quite low for what the broker gets here...should I be thinking more holistically about what kind of service the broker offers? Would this be the kind of volume broker that really isn't that interested in my particulars and really needs to get as many of these £495 transactions completed per month? And with that in mind, if I'm capable of doing so would it be worth:
a) paying more for a broker that potentially offers a wider service? (let me know what the benefits would be if this were the case) 

b) just doing the search and paperwork myself using one of the many online comparison sites where (based on the initial mortgage product sent back from the broker) I can get a comparable deal

The short version of this question is, what am I really getting for my money and is it always worth it?

As a guide I typically charge on formal offer £399 for straight forward, £499 for mid adverse and £599 for heavy adverse/ ltd company buy to let/ expat (complex stuff)
We do also get paid by the lender. 
What someone using a broker wants to know is
Is the broker whole of market?
Do they answer calls and respond to emails in a timely manner?
Do they know their stuff?

What you want is a broker who adds value to a transaction. What you dont want (but often find with conveyor brokers which is the issue I have with l&c) is brokers who effectively add an extra layer of delays. If it takes the broker 3 weeks to come back to you in an environment of increasing interest rates and disappearing products at 90% it will cost you more for a free broker who delays than a fee charging broker who can get the job done.

I have just taken on a client who was going to use trussle because they were free until I pointed out that the product they had recommended (nationwide) was a) £1500 more expensive than the one I was suggesting and b) nationwide are so delayed they are unlikely to get a mortgage offer until 2021 so best avoided unless you have no choice but to use them.

I may be biased but I think a good broker adds value to the transaction if you get one who is responsive. The main thing we can do is avoid the lender queues in trying to go direct (I have heard it can take a month to get an appointment to go to the lenders direct- I do an aip within 24 hours of having all the docs required to do so) and also it can take 1 hour plus to get through to a lender for updates and we know the best way to present a case to a lender to maximise the chances of success. Whether you feel that service is worth paying for is up to you.

I hope you don’t mind me butting into this ever so slightly, it’s just what you mentioned about nationwide that I’ve got a question about. 

Is that new applicants unlikely to get an offer until 2021? We had our full application submitted via a broker on 18th September, we’re still waiting on a decision. 

Nationwide as a lender are hideously backed up and should be avoided unless you have no other option (90% or tied into them)
I have had two mortgage offers from them this week- the applications were submitted in August. One had a slight delay due to needing a certificate for survey, the other one only had one query come back which we answered straight away (but as it was a refer on aip it was in the 19 working day queue)
If you started 6 weeks ago and have not had a decision then people starting now will be at the same point the week before christmas hence why I am saying they are unlikely to get a mortgage offer before the end of the year 

Thank you, I just wanted to check as I had a wee bit of a panic moment when I read that 😊

JJG1984

Hi,
I have received my offer from NatWest and still no hard search on credit report; does this mean I have got off without one or will it be conducted as the credit line is created?

Ready_To_Roll

Hi, thanks for doing this. I’m interested in buying a house (85% LTV), but my DIP ran out (1.53%) while waiting for my property to sell and the only deals my broker can find now are 2.9% and up. Could I potentially accept the higher terms to secure the house but then change my mortgage if rates start to come down in the new year (before completion)? I’m guessing not but best to check. 

pinklady3333

I was wondering how often you see a mortgage declined after an AIP? 

Thanks 

haras_n0sirrah

JJG1984 said:

Hi,
I have received my offer from NatWest and still no hard search on credit report; does this mean I have got off without one or will it be conducted as the credit line is created?

If you have your offer you should be fine 

haras_n0sirrah

Ready_To_Roll said:

Hi, thanks for doing this. I’m interested in buying a house (85% LTV), but my DIP ran out (1.53%) while waiting for my property to sell and the only deals my broker can find now are 2.9% and up. Could I potentially accept the higher terms to secure the house but then change my mortgage if rates start to come down in the new year (before completion)? I’m guessing not but best to check. 

Rates have shot up. Some lenders allow a change of product. Others dont and would require a new application so you would need to factor this into your lender choice