Can anyone recommend a fee free adverse credit mortgage broker?

ClaretBob

Can anyone recommend one, or any on here?

Looking for someone to help me find a mortgage.

[Deleted User]

Fee free and adverse credit rarely gp together.  How bad is the adverse?  Most don't realise the tolerance for adverse that mainstream lenders have

K_S

@claretbob Habito used to have a referral tie up with Impact Specialist Finance who provided fee-free adverse advice if you went through the Habito site. However, it looks like it didn't work out as it's now showing as charging up to 499/-.

If you don't find any fee-free options, the next best might be to find one that charges a fee no earlier than upon offer.

However, as JMA said, people often overestimate how bad their credit-report is, so do keep that in mind as well.

ClaretBob

Hi, enough adverse to require an away from high Street option. We have spoken to a broker through haysto but was shocked that their fees are as much as £1995!

amnblog

£1,995 is off the pace Bob, more than double what you could expect to pay most Brokers.

However, seeking fees free on an adverse is equivalent to asking a naive and inexperienced broker to handle it for you.

ACG

Our fees for adverse range from 750-1495 - depends on the level of adverse (not that I am touting for business, we are chocca next week as is). 

There is a good phrase - cheap, good, quick, you can have any 2. 
I think when it comes to adverse this tends to ring true. It is a specialist part of the market, it forms about 90% of what we do. I am not trying to blow our trumpet here. I think it is important to understand that adverse lenders are very different to normal lenders. You may also find that a non specialist broker uses a "packager" as a middle man to help them and they end up charging. So you then have another middle man and a fee and chinese whispers or delays in getting messages and things processed. 

Specialist lenders tend to go through bank statements line by line, they want explanations for things and the whole "packaging" process is a lot more thorough as you are higher risk.

I did a couple of "normal" cases before christmas. The lender did an electronic ID check, verified income via HMRC and did not need bank statements. So basically I filled out an online application form... I ended up reducing our fee because I ended up doing a lot less work than expected. That would never happen with specialist lenders, they have their minimum requirements, but typically they will want more. An experienced broker will usually pre-empt a lot of those things and get you your mortgage offer a lot quicker. 

Also on a side note, not so much at the moment but pre-covid we used to have deals and better criteria that were only open to a handful of brokers with certain lenders. So you could find you actually end up saving money. 

Sorry, having read that back it really sounds like a sales pitch and I am spending your money. It is not supposed to, but just wanted to try and explain there are reasons why brokers charge for adverse and it is because there is a lot more work. 

Steviek83

Deleted_User said:

Fee free and adverse credit rarely gp together.  How bad is the adverse?  Most don't realise the tolerance for adverse that mainstream lenders have

@Deleted_User I have 4 defaults, all from 2016. With 3 due to drop off in June. The other in November. I have no other debts. Am on a good and steady wage as is my wife. We also have a house with over 80% equity in it. Yet no high street lender will touch us due to my defaults. Halifax had originally gave us a DIP and then pulled out after we had an offer accepted on a house. So left with no choice other than to look at an adverse credit lender. 

[Deleted User]

There must be something else behind the scenes then as there are plenty of non adverse lenders who will only look back 3 years for defaults.  Perhaps you failed the scoring even if you passed criteria which is another possibility but there are plenty of building societies who dont credit score.  

With these kind of cases the devil is in the detail and one of the reasons you wont find many doing these cases for free is the amount of pre application work that goes in to them.  Once they are in to the lender they can be tricky but its the upfront work that takes the time.  

lspell1

Steviek83 said:

Deleted_User said:

Fee free and adverse credit rarely gp together.  How bad is the adverse?  Most don't realise the tolerance for adverse that mainstream lenders have

@Deleted_User I have 4 defaults, all from 2016. With 3 due to drop off in June. The other in November. I have no other debts. Am on a good and steady wage as is my wife. We also have a house with over 80% equity in it. Yet no high street lender will touch us due to my defaults. Halifax had originally gave us a DIP and then pulled out after we had an offer accepted on a house. So left with no choice other than to look at an adverse credit lender. 

If you have previously had debt with Halifax, which wasn't repaid (i.e. written offer) this may also cause them to decline at application but not at DIP stage.

feelinghopefull2022

ClaretBob said:

Hi, enough adverse to require an away from high Street option. We have spoken to a broker through haysto but was shocked that their fees are as much as £1995!

We’re using Haysto and they have been amazing! They are worth every penny

dunstonh

online/direct brokers tend to do the job fine with easy mortgage cases.    Online/direct brokers tend to have staff with less experience and knowledge and want the business they can turn around quickly and easy.    When it comes to problem cases, you generally find most online/direct brokers either don't want it or their service levels fall away.

If you have adverse credit or are pushing limits then smaller independent mortgage broker is usually the way to go.