:: Pushy Broker ::

suby786

The agent that is selling the house I am purchasing, has a broker that has given me advice, he did get me the best offer AT THE TIME so naturally he really wnated my buisness so bent over backwards (it seemed) to get the vendor to accept my offer which they did... now i feel under a bit of an obligation to go with him... but why should i as he is in a sense "pushy"

Im a FTB and its all new to me, he wanted me to sign for a mortgage before the house was even taken off the market, i didnt even know the end of the chain, i still dont... so i said im not signing yet. I know i can get a mortgage but when in the process should i submit an application, its just started (the process) and were looking at prob 8-10 weeks, and at most a mortgage offer will take 2weeks to come thru ... with rates going down next week, and it looking like fixed is the best option for me, theres not much need to wait til thur but in 2weeks time there may be good tracker rates.. who knows..

so anyway how do i get out of the "hold" this broker has? i dont trust him and his advice, he sed in a sense not to listen to my family as there advice mite be good for them, not me...

dunstonh

he wanted me to sign for a mortgage before the house was even taken off the market, i didnt even know the end of the chain, i still dont... so i said im not signing yet.

Estate agents often wont take the property off the market unless they know you can afford it and have the mortgage. They will give a period of time.

I know i can get a mortgage but when in the process should i submit an application

Once you agree price. Which you appear to have done.

its just started (the process) and were looking at prob 8-10 weeks

in that timescale you are obviously hoping for no glitches. You can probably double it for the average chain.

and at most a mortgage offer will take 2weeks to come thru

It may well do but it may not. I know my mortgage adviser has a few first time buyers taking longer than that and one is an empty property with no chain due to various issues with the vendor. You can never assume how long it will take.

so anyway how do i get out of the "hold" this broker has?

Tell them you don't want to employ their services.

i dont trust him and his advice, he sed in a sense not to listen to my family as there advice mite be good for them, not me...

he may well be correct. Families and work colleagues often give out naff information. You wouldn't believe some of the rubbish that gets churned out by some people.

Your risk at this stage is that the estate agent sees you as a time waster and puts the property back on the market. If you are just sitting back then you are going to get pushed because its in your interests to be pushed if you want the property.

suby786

thanks mate, much appreciated

I only listen to my sister as she's a coneyencing solicitor and knows how long things normally take.,.. but he didnt like it. he wanted me to sign to 6.01% with coventry fixed when on the screen was nationwide @ 5.89% or something... that really got on my nerves..

found a deal with Norwich/Peterborough 5.59% FIXED for 3yrs 90%LTV and low reservation fee... not bad ... but crap in comparison to first directs 5.25%

What about L&C... are they reputable lender? As they have a really good one, 5.39% FIXED (90% LTV) (cant see who from though - it may be L&C)

luckyfool

L&C - telephone based and no frills service. If you are comfortable with that and don't need extensive advice or your "hand held" then they are normally fine. There are good and bad reports on here about them and I guess to a degree it will depend on the adviser you get.

First Direct - a) You need to open a current account with them and have salary credited to it to be eligible for their deals. The best ones require a 20% deposit and anecdotally their service is awful currently as they are so busy. It's taking about a week to get an adviser to call you back just to chat through your options and see if they can do it.

dwsjarcmcd

Before anyone can tell you about current deals, it is probably worth knowing a bit about your circumstances. For example, what is the Purchase price and how much do you want to borrow? Salary etc

If you don't trust the adviser, then you shouldn't use them. Look after number 1

UK007BullDog

On average mortgages take up to 6 to 8 weeks to complete. There is a lot going on before the paperwork hits the conveyancing solicitor. Most of the time its the solicitors holding it up.

If you saw better interest rates on the brokers screen then ask why you cant have those. There might be a reason. Not every deal showing up as best might be suitable for the customer, there are very many reasons (lender only lends in a certain area, certain property types, credit scoring, FEES!!!) Some lenders have low interest rates but huge whopping fees (did you see the fees???), long tie ins and so forth. So ask, ask, ask to find out! Your broker might have your best interest at heart but you just might not know it.

Ands the risk is that the estate agent might just put the property back on the market as you are hessitating as his client is the seller, not you the buyer, so his priority is to sell the property.

Buyers (FTB's especially) do not need to be worried too much about a chain. Once you buy it its yours and the vendor has to move out, which they can do and move into rented accommodation which the estate agent can surely supply as well.

palmeras69

Actually Bulldog, contrary to popular belief (a belief that brokers, estate agents et al like to promote) it isn't the case that solicitors always hold things up. They tend not to delay things on purpose (why would they when they don't get paid on a remortgage until completion). They usually have to contend with things such as missing mortgage offers, clients who seem to think they don't have to sign papers (such as mortgage deeds) and brokers telling the clients that it is all the solicitor's fault. In my experience, doing the job properly is frowned upon because it causes delay although not doing the job properly can (and does) result in the solicitor being sued (usually by the lender).

For all that, the solicitor gets a fraction of the fee that a broker and/or an estate agent gets.

That is my expereince but I do accept that there are bad and/or slow solicitors out there. Just as there are bad estate agents and mortgage brokers.

Dan_Collins_2

palmeras69 wrote: »

Actually Bulldog, contrary to popular belief (a belief that brokers, estate agents et al like to promote) it isn't the case that solicitors always hold things up. They tend not to delay things on purpose (why would they when they don't get paid on a remortgage until completion). They usually have to contend with things such as missing mortgage offers, clients who seem to think they don't have to sign papers (such as mortgage deeds) and brokers telling the clients that it is all the solicitor's fault. In my experience, doing the job properly is frowned upon because it causes delay although not doing the job properly can (and does) result in the solicitor being sued (usually by the lender).

For all that, the solicitor gets a fraction of the fee that a broker and/or an estate agent gets.

That is my expereince but I do accept that there are bad and/or slow solicitors out there. Just as there are bad estate agents and mortgage brokers.

I find two issues with the process, estate agents are to pushy and want everything tied up to fast. They put pressure on all involved and give unrealistic dates. The legal process is not easy and solicitors dont get paid as much as they used to, or that it seemed they got paid.

The problem I have with solicitors is that with 8 out of 10 purchases the solicitor will ignore calls, not return messagers and brake promised deadlines. I dont care what you say to that, I deal with it all day and it gets on my nerves, if I acted like some solicitors I would be out of a job. Then you free legals, clients want it so they get it, the solicitors get paid little so have to double the volume to earn money, then service standards slip.

I agree not all brokers are great, but solicitors or the legal process is an issue, but hey the law society are paid for by???? Oh yeah the solicitors or should I say the untouchables! :money: :mad:

dunstonh

For all that, the solicitor gets a fraction of the fee that a broker and/or an estate agent gets.

Really?

How can the figure be more when the typical commission on a mortgage is 0.3%? Solicitors routinely charge around the £1000 mark now. A £100k mortgage earns the mortgage adviser £300. (before costs).

luckyfool

dunstonh wrote: »

Really?

How can the figure be more when the typical commission on a mortgage is 0.3%? Solicitors routinely charge around the £1000 mark now. A £100k mortgage earns the mortgage adviser £300. (before costs).

The thing is it's impossible to work out the actual solicitor income. The total solicitor costs excluding stamp duty might be £1,000. But then the actual legal fee in there could be £299, with itemised costs for Searches (local and environmental) etc. And even then I've seen quotes itemise these expenses, but then go on to explicitly say that this might not be actually what they cost. i.e. they could be charging £150 for searches, but have a deal with the search company so that they are only paying them £50 and pocketing the difference.

dunstonh

Just like its impossible to say what the adviser will get "net". After network deductions, maybe an employer/attached firm deduction, software and paperwork costs etc etc they are lucky to end up with anything if they are in a cheap housing area.