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[Misc] The advantages of using a mortgage broker ?
- Thread starter Questions
- Start date
- Aug 24, 2020
- 7,095
Apart from trawling the whole market with a database of up-to-date deals, a broker can point you at the lenders who do a soft credit search, so that your credit history is not updated with the info that you have made a mortgage application.
middletoenail
Well-known member
There isn't, they're like estate and football agents. Do your own homework and keep the commission in your own pocket.
- Thread starter
- #4
The reason I ask is because my daughter has been invoiced for an additional sum of 6k on the eve of her move by her solicitors for what I can only think is for some some penalisation of early re-mortgage Blah Blah. The broker had assured her that the mortgage was split to get around these penalties but then advised tonight 16 hours before completion that they should stall because if they go head they might have to re-arrange the mortgage .... The solicitor has basically said don’t even think about that because of penalties. Poor girl was beside her tonight. 6 ****in* 5housand on the eve of your move ........... what ?
Sadly for your Daughter, Broker or Solicitor screwed up and she`ll be left out of pocket.
beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 36,014
advantage of a broker seems to me when you have non-standard circumstances or cant work out the best mortgage from comparethemeerkat. in this case there might be another benefit, if they advised and information was incorrect, there may be some insurance they have to compensate.
HantsSeagull
Well-known member
the broker firm will have a complaints procedure that she should follow and then when she doesnt get satisfaction, go to the ombudsman.
LamieRobertson
Not awoke
Ouch...that shouldn’t be happening on the eve of a move ..poor lass.
If your situation is straightforward, you have a large deposit, a good credit history and there’s nothing unusual about the property you’re buying, there might not be a need for a broker.
Having said that, if your circumstances have any subtlety or nuance at all, a broker is a good friend to have. Look for brokers that say they are independent, full market, and that aren’t trying to gouge a fee out of you. All brokers get a commission for matching the borrower with the lender, lots of less scrupulous brokers charge the borrower as well. It does not make them a single percent better, or give them access to deals that those who don’t charge can’t get for you.
A good broker will know which lenders are strictest on certain criteria, and which are more flexible. They will know which lenders to go to if a portion of the property were to be of non-standard construction. They will know which lenders deduct more from your calculated “disposable income” for each kid you have. All stuff that doesn’t seem too important, until you’ve been declined twice by direct applications, and have no idea why, but now have two hard searches on your credit report, making each s subsequent application that little bit more fraught.
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Having said that, if your circumstances have any subtlety or nuance at all, a broker is a good friend to have. Look for brokers that say they are independent, full market, and that aren’t trying to gouge a fee out of you. All brokers get a commission for matching the borrower with the lender, lots of less scrupulous brokers charge the borrower as well. It does not make them a single percent better, or give them access to deals that those who don’t charge can’t get for you.
A good broker will know which lenders are strictest on certain criteria, and which are more flexible. They will know which lenders to go to if a portion of the property were to be of non-standard construction. They will know which lenders deduct more from your calculated “disposable income” for each kid you have. All stuff that doesn’t seem too important, until you’ve been declined twice by direct applications, and have no idea why, but now have two hard searches on your credit report, making each s subsequent application that little bit more fraught.
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Questions, is your daughter porting her mortgage with her current lender and which lender is it? If so, sometimes the redemption statement from the lender will quite often still have the Early Repayment Charge on it even if they won't need to pay it.
- Thread starter
- #12
That’s the word I was looking for Fareham....ported. Yes she has. It’s from the Halifax but of course has been included for within the solicitors fee. I just thought something was amiss to be talking about this at such a stage.
Right, in that case then she hopefully shouldn't need to pay the early repayment charge as Halifax allow porting without applying a charge. This is not unusual though, it happens quite a lot with lenders and solicitors. The solicitor requests a redemption statement from the lender and they just send it back assuming it's just going to be paid off so the charge would apply, that department wouldn't pick up that your daughter is porting the mortgage and I assume applying for additional funds on top (again, I'm assuming she's applying for the extra funds with Halifax?). The solicitor will then just send out the completion statement with this charge applied. The broker doesn't see this so wouldn't necessarily know it's been applied in error.
If your daughter and the solicitor check her mortgage offer, then it should state on there that there will be two separate mortgage products but it won't necessarily state that she is porting her first product which is where the confusion comes in. The broker should get on the phone to the solicitor and tell them, or probably best, email them to confirm they are porting a product so there should be no charge. The solicitor should then send out a new completion statement.
Let me know how she gets on but hopefully she won't need to pay this. As mentioned previously, I come across this a lot.
Butch Willykins
Well-known member
Team broker here. With a preference for Albion supporting film buffs.
MattBackHome
Well-known member
- Jul 7, 2003
- 11,873
I'll add to the mix that I don't like filling in forms at the best of times and so to have someone say "sign here, here and here... right you're done" is very attractive to me.
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I use a broker whenever I remortgage and I suppose just like any service, it's a matter of luck finding a good one. I found mine through word of mouth. The last time I remortgaged because of the package I chose he earned his commission from the provider, I think.
Weststander
Well-known member
If she has the original evidence that they clearly stated that, make a complaint then court claim if no joy once this transaction has been completed. Perhaps putting in writing the complaint now.
They have PII and are regulated.
mejonaNO12 aka riskit
Well-known member
Team 'do it yourself' here.
Moved last year for the first time so was always going to stay with same provider but have previously done all remortgages myself.
On the move last year they bolted on the new mortgage and adjusted the terms of my other mortgage to bring it all in line on terms. Certainly shouldn't need to pay any sort of redemption fee.
Moved last year for the first time so was always going to stay with same provider but have previously done all remortgages myself.
On the move last year they bolted on the new mortgage and adjusted the terms of my other mortgage to bring it all in line on terms. Certainly shouldn't need to pay any sort of redemption fee.
- Jul 10, 2003
- 27,766
[MENTION=9708]Farehamseagull[/MENTION] showing that NSC can be a power for good once again, hope it sort's [MENTION=5306]Questions[/MENTION] daughter
You can take the luck out by asking if anyone knows of a good broker on NSC and then await the deluge of replies, >90% of which may be very similar
