Mortgage Brokers

Still some cowboys about.

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I had thought that FCA new rules had made it harder for mortgage brokers at the lower end of the scale to make a lving that most had now left and went back to selling double glazing.

I have 2 guys in the last year have new businesses so would struggle for a mortgage from mainstream lendors and so have gone to b or c tier lendors.

The advice they give is shocking. I have just had one today for a Director who was taking £8060 salary but the IFA has told him "its your company just take all the money out as salary as that will get you the mortgage you need"

I have therefore asked for the payroll records to show his new salary low and behold it hasnt changed as he didnt want to pay over the additional PAYE.

The lendor is now chasing me for the accountant certiifcate which I have told the IFA I cannot do.

"I dont know what the accountants problem is he should just sign it" Trying to make you look like the bad guy when really the deal is not a good one for the client.

They sent me the deal paperwork by mistake with the accounts cert. The deal is horrendous and the fees loaded on it ridiculous.

So the mortgage broker who is getting £1500 introduction fee for his shoddy advice expects me to sign off any old crap for my £75 accountants certificate fee.

I am fed up of these jokers I have 2 guys on board who I use for clients who come to me first for mortgages, and we work together well with. I am thinking of just refusing to do accountants certificates for clients who dont use the in house provision.

Does anybody else have problems with these type of IFA?

 

Replies (6)

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Worm
By TheLambtonWorm
13th Oct 2016 16:44

I've had similar situations to that. Some of them can be extremely annoying.

I always just assume when they are like that, that they have already told the client that they will have no trouble getting them a mortgage agreed, and then are too pig headed to admit they didn't have a clue what figures they needed for a company director.

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By Manchester_man
13th Oct 2016 19:31

I sympathise with you as I have experienced such individuals myself. I make a point of sticking to the facts and if they don't like it, it's tough luck. If the salary is 8,060, then so be it.

Once they have banked their fee and disappeared, it is us who are left picking up the pieces when it all goes wrong.

"I dont know what the accountants problem is he should just sign it"

If the certificate reflects the true facts and figures, then fine, but if it doesn't, I would point out that it is your neck on the line and you will not put your name to something which you know to be inaccurate.

They like accountants who are pushovers.

Tell the client that a) the mortgage broker appears to be a cowboy b) the deal is horrendously terrible and c) unlike the mortgage broker who wants a quick buck, you are not a cowboy and have standards and a reputation to uphold.

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Glenn Martin
By Glenn Martin
14th Oct 2016 12:01

@Manchester man
The annoying thing is had he come to me first his dividends + Salary are probably enough for what he needs had I put him in front of a lender that understands Directors earnings he would be ok.

The fact that they have cobbled up this scheme where he is all paid salary has messed it up, yet the iFA is trying to present as me who is stopping the guy getting his dream home.

I have told him to sack the IFA and I will deal with it.

Balls in his court now.

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By cheekychappy
14th Oct 2016 12:08

"As a qualified accountant, I have something to lose, unlike that glorified salesman".

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By Manchester_man
14th Oct 2016 13:29

Precisely!

(to the last and the penultimate post)

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Tornado
By Tornado
15th Oct 2016 00:25

These days I much prefer to deal with the lender directly where possible. Banks and Building Societies are generally fairly easy to work with but I have found the smaller higher risk lenders to be quite ignorant on matters of Accounts and Taxation and are quite hard work.

Some brokers do not understand the simplest of matters such as the distinction between self-employed and rental income, the way that capital allowances and AIA can dramatically affect taxable income and how income is extracted from Companies, for example.

In one case, the broker was so ignorant of his subject that despite his protestations, I am convinced he had started up his business the day before without any previous experience.

I do, however, detect a trend back to old fashioned standards by lenders themselves and only today I was advised that Santander was happy with a clients mortgage application and the information I had supplied directly to them. It was easy really as all I did was provide Santander with the facts and any relevant explanations, and they understood.

No arguing with a Broker, desperate to get a commission and trying to dictate to me what income I need to show for my client, and they have got quite a abusive in the past when I refused to play ball.

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