You are here: Home - Your Community - Top Comments -

What you most dread hearing from clients: It shouldn’t happen to a mortgage broker

by: Heather Greig-Smith
  • 17/03/2017
  • 0
What you most dread hearing from clients: It shouldn’t happen to a mortgage broker
We asked some expert mortgage brokers what are the questions they most dread hearing from clients. Here's what they told us...

Shaun Church, director, Private Finance

Can I rent the property back to the vendor for six months?

This is the one that springs to mind – post-offer, once everything is going through, they turn round and ask to rent the property back to the vendor for six months because they want to do the deal but aren’t ready to move.

It completely scuppers the whole deal and undoes all the hard work. The client doesn’t understand that would throw up all sorts of regulatory issues and require a buy-to-let mortgage – you have to have vacant possession on completion so it completely ruins the deal. Just as you think the deal is done, the goal posts move. It’s a nightmare.

Ray Boulger, senior technical manager, John Charcol

Is your fee negotiable?

The answer to that is yes – upwards!

Why can’t I have the loan when I can easily afford it?

Having to explain to someone who wants to borrow with a low LTV and can easily afford the mortgage that they don’t meet a lender’s criteria because of stricter affordability criteria is difficult.

They may be self-employed with an accountant who is able to produce accounts for them in a tax efficient way, perhaps taking a director’s loan instead of salary. They are minimising tax in a legitimate way but because of the ways lenders are restricted they might struggle to prove they can afford it.

It’s much better if you can tell them upfront that this is likely to be an issue.

Andrew Montlake, director, Coreco Group

The questions we dread are those that give away the fact that the client is trying to play the system. They include:

How much can I borrow? (I don’t want to give you any details just want a rough idea)

Do you have to tell the lender?

What credit reference agency does the lender use?

How much do I need to earn?

You get paid by the lender, right?

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Mortgage prisoner debt
Bank of Scotland mortgage prisoner trapped on £2m self-cert deal wins fight to switch

Bank of Scotland has paid £29,000 in compensation to a customer who it trapped on a Standard Variable Rate, after...

Close