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?