Avoid broker fee, but AIP already done?

Logicalsquirrel · 14 June 2017 at 12:38PM

Hi

Im a first time buyer and having contacted a broker they said that they could do a search for me and then send me details and also their fee details.

Since then I have had so many people tell me that £500 for the broker is unnecessary, that there are plenty out there who are fee free. Problem is, now that they have secured an AIP for me, if I don't go with them, does this mean having to go through a fee-free place and have another footprint on credit file?

I looked at my report today so I know who the AIP is with - Nationwide. A friend told me that if Nationwide have provided the AIP i could approach them myself to go through the application, they should surely have a record of AIP, thus cutting out the middle man.

Every £ towards my deposit is going to help at this point and I can think of many things I could spend this money on rather than the brokers fee.

Also, I initially went to my bank HSBC when I had a much smaller deposit and the did an AIP for me which did not show on credit file - has this been a soft search and the Nationwide is a hard search?

Apologies, but I am still learning all the technicalities of the application process.

Thanks in advance for any info and advice.

newbieFTB · 14 June 2017 at 12:50PM

Nationwide AIP is a hard credit search and as I understand it you can't just 'pick up where you left off' - if you went direct to Nationwide it'd be a new application and a new credit search.

I went through a fee fee broker and have my mortgage with Nationwide, although there is no fee for the broker (as Nationwide give him commission) I lost out on an extra £1000 cashback as I could have applied for a Save to Buy mortgage direct with Nationwide and got the same £500 cashback that I'm getting on my current application plus an extra £1000 cashback.

I told my broker this and he asked if I wanted to still do the AIP/application through him, I stuck with him as in the grand scheme of things when I'm in the house of my dreams I'm not going to look back in 30 years time and kick myself over £1000. As a FTB I wanted the 'hand holding' and expertise that a broker offers and this was worth losing a grand for in my opinion.

Logicalsquirrel · 14 June 2017 at 1:00PM

I sort of feel the same as Im FTB to be fair.

So the AIP this broker has done, can only be escalated by the same broker?

I have a viewing on a house tomorrow and closing date Monday so Im getting a bit nervous about timescales and disposable money available for broker fees.

Having looked at Nationwide, I saw the Save To Buy one with cash back too!

Hindsight etc etc lol

newbieFTB · 14 June 2017 at 1:41PM

Logicalsquirrel wrote: »

I sort of feel the same as Im FTB to be fair.

So the AIP this broker has done, can only be escalated by the same broker?

I have a viewing on a house tomorrow and closing date Monday so Im getting a bit nervous about timescales and disposable money available for broker fees.

Having looked at Nationwide, I saw the Save To Buy one with cash back too!

Hindsight etc etc lol

Yep, the AIP from the broker can be progressed to full application by him but if you went direct they'd start again. Obviously if nothing has changed you should be OK but if it was me I just wouldn't want the risk/hassle. You'd be gutted if they went direct and declined it for some random reason.

Does the mortgage your broker has selected come with the £500 cashback? If yes then think of it as paying his fee - once you're happy in your new home the £500 will be a distant memory. I've saved hard for so many years to be in a position to buy and as long as it all goes through OK in the end the 'lost' cashback is a small price to pay.

Logicalsquirrel · 14 June 2017 at 1:50PM

I don't know any of the product details, I assume they are wanting me to sign their agreement for the fees etc before they reveal what they are recommending.

So are the cash back deals only available to non broker applications?

newbieFTB · 14 June 2017 at 2:12PM

Logicalsquirrel wrote: »

So are the cash back deals only available to non broker applications?

No... the mortgage I'm getting has £500 cashback attached (even though it's through a broker). It's just that as I've been saving in a Nationwide save to buy account I could have applied for a 'save to buy' mortgage and got the regular £500 cashback plus an extra £1000.

I get where you're coming from as there's lots I could do with the 1k that I missed out on, as you could with your £500 broker fee but as you've already 'used up' a credit search I just don't think it's worth the hassle/risk for £500.

amnblog · 14 June 2017 at 2:23PM

Have you agreed to the Broker's Terms Squirrel.

If so, you have a contract.

If not, why are they running decisions with a Lender for you?

Logicalsquirrel · 14 June 2017 at 2:54PM

Well so far its all been done over the phone and email and following them getting the AIP, they sent me a brokers agreement thing to return. I imagine at this point I've agreed verbally, the confusions been that before the AIP done thru my bank was a soft search so I thought that any AIP generated short of an application would be the same

I am going to contact them and ask them what product the AIP is based on.

Does it help any that all my deposit/savings including my Help to Buy ISA is held with Nationwide?

The more I read up on mortgages, the less I understand lol

amnblog · 14 June 2017 at 3:02PM

If you have returned their agreement you have entered into a contract for them to assist you.

Logicalsquirrel · 14 June 2017 at 3:05PM

Haven't returned this yet.

amnblog · 14 June 2017 at 3:09PM

So you have not returned the fee agreement, yet they have still run a credit check with a Lender?

Strange

Avoid broker fee, but AIP already done?

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free