Take extra care when using brokers at moment

Ian_Griffiths_Halifax

If the lenders are fully aware of her position and are willing to take the risk due to the LTV and the interest rate she'll be charged, I can't see a problem.

If incomes have been made up to make the case look better than it is, then that's very risky.

homer_j_3

Ian_Griffiths_Halifax wrote: »

If the lenders are fully aware of her position and are willing to take the risk due to the LTV and the interest rate she'll be charged, I can't see a problem.

The self cert deals are priced accordingly and you are correct that they often reflect the increased risk involved. That said, if that case was to be checked then this response would not be a defence.

As an adviser, you have a responsibility to know your client. So, how could you be sure this person was earning what they stated? Did it not cross your mind that there could be tax evasion involved? Ignorance cannot form part of your counter argument.

Conrad, you are a cowboy and the fact that you gloat that you will happily break the law and risk a fine and prison sentence for a measly 5.5k is shocking. You are the kind of person this industry does not need.

Ian_Griffiths_Halifax

homer_j wrote: »

The self cert deals are priced accordingly and you are correct that they often reflect the increased risk involved. That said, if that case was to be checked then this response would not be a defence.

As an adviser, you have a responsibility to know your client. So, how could you be sure this person was earning what they stated? Did it not cross your mind that there could be tax evasion involved? Ignorance cannot form part of your counter argument.

Conrad, you are a cowboy and the fact that you gloat that you will happily break the law and risk a fine and prison sentence for a measly 5.5k is shocking. You are the kind of person this industry does not need.

I'm not sure that you get what I meant. The lender is a Solicitors Practice by the sounds of it. IF they are fully aware of the lack of provable income and don't require any income whatsoever, not even an income figure, due to knowing there is a getout for them, ie very low loan to value but in the mean time they can charge an extortionate rate of interest, then the risk is theirs. It's just like the lady coming to me. If I want the risk in return for the high return on interest and a charge on the house, it's up to me.

This isn't a bank or building society, they have rightly turned it down as it's hardly good business and they wouldn't want the risk.

Having said that, I wouldn't want the case that's for sure.

Dan_Collins_2

Yeah right, OK Mr Solicitor, Mrs Woman wants to borrow some money, all other lenders have said clear off and your our last chance, er she earns x but we cant prove it and we cant prove she is self employed!

Some creative packaging??

The point I was trying to make is not that the lender should lend, but how or why should she be able to borrow when she is clearly tax evading?!

payless

To get back to the point of the thread

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When using brokers ( and yes they can help) please note that as well as some lenders only dealing direct , some others are currently quoting better deals direct - if you want full market advice/ research then ensure you get all deals included ( thgis may come as at a fee)

Also note cashback sites are unlikely to show the no commission deals

payless

Of course the other things mentioined on this thread may indeed put people off using brokers

Ian_Griffiths_Halifax

payless wrote: »

Of course the other things mentioined on this thread may indeed put people off using brokers

Don't you think that people reading this thread will think that brokers come across more deals than Mr & Mrs Average on £30,000 a year wanting to remortgage their £75000 mortgage on a £150000 property?

Lenders don't give advice. The majority of Brokers do.

payless

Ian_Griffiths_Halifax wrote: »

Don't you think that people reading this thread will think that brokers come across more deals than Mr & Mrs Average on £30,000 a year wanting to remortgage their £75000 mortgage on a £150000 property?

Lenders don't give advice. The majority of Brokers do.

maybe , but I doubt they are indeared the them when they see fees of that nature being mentioned , and what many others see as dodgy .. consumers might think " better to stick to that nice man at the bank- I know he might not be cheapest, but I won't be stung by some wide boy"

Ian_Griffiths_Halifax

payless wrote: »

maybe , but I doubt they are indeared the them when they see fees of that nature being mentioned , and what many others see as dodgy .. consumers might think " better to stick to that nice man at the bank- I know he might not be cheapest, but I won't be stung by some wide boy"

That nice man at the bank who'll charge them 2% of the advance without blinking, and not tell them that if they paid £495 on another of their products with a fraction higher interest rate, then the total overall cost would be less?

payless

Exactly my point .. so isn't this the platform to be showing how good brokers can be , rather than pushing them into the arms of the less qualified / restricted choice banks