Broker Hassle

D

DMBL

Guest
Unfortunately I am completely unhappy with the mortgage broker I chose to use.

To cut a long story short....I returned all applications and information in a timely manner along with the contractual deadline dates. However despite assuring me all was in hand, they failed to issue both the loan offer and 10% short term loan for the deposit in time.

Fortunately the builder agreed to accept the contracts a day late. The loan offer was issued in time for this at least. Also I was able to source the 10% deposit elsewhere.

Obviously i no longer wish to have any interaction with the broker. however before i kick him into touch, i am quite nervous about "going it alone" and have a few questions....

1. I had to source a loan for the 10% deposit myself as the "brokers" loan could not be issue in time. The broker is insisting that i must continue with their 10% loan and use it to pay the one I took out myself. In turn it will be paid when the mortgage is drawn down. Do I have to do this??? Surely I can just bypass the "brokers" loan and use the mortgage to pay off the one I sourced myself? Are they not basically the same thing... a 10% loan to paid directly from the mortgage.
2. When taking out home insurance and mortgage protection, from what date should the policies take effect?
3. I have now paid the 10% deposit and signed the contract...what are the next steps in the process? (i.e what would a broker usually be doing for me from here on in?)
4. Is the remainder of the house price paid before / after snagging?

Also....
5. If I do have to proceed with the "brokers" 10% loan, do I have any comeback regarding the interest I have to pay on the loan I sourced myself? Afterall the only reason I had to take it out was because the broker didn't the deposit organised in time.
 
This broker never came thru with the 10% loan so you should bill them the difference between 'your ' one and 'their' one if the interest is higher on 'your' one.

what does your solicitor say about all this , you pay their wages do you not ??
 
I'm afraid I am unable to answer your questions, but sounds like my broker to me. He has delayed everything to do with my mortgage and is now looking for a fee (I've left him by the way), he doesn't answer calls if he couldn't be bothered and could take him days or in my case, often weeks to get back to you, and if he does, he'd get back by TEXT. VERY unprofessional. It seems to be the norm for him too as I know others who have complained.

You should be able to ask your solicitor any of these questions?
 
I'm a bit confused - did you get the 10% deposit with the broker or with the bank/building society you are getting the main mortgage with?

With regard to the life and house insurance the policy documents really need to be with the lender (via your solicitor) at least 4 working days prior to closing. The solicitor should be handling everything else and will advise you when they've got the completion notice from the builder - at that stage you organise the snag and the final funds are handed over AFTER the snag - definitely not before!

Esme - delighted to hear that you ditched that broker! ;)

Sarah

www.rea.ie
 
I am due to meet with my solicitor this week and will of course pose all of the above questions along with more.

My aim in posting queries here was to discuss similiar experiences and perhaps throw up some questions/issues which may not have occured to me as of yet

If anyone has had similar problems with their broker I would be interested in hearing how they overcame them.

As a first time buyer I had depended on my broker for information and guidance. Obviously I can no longer do that and would like to be equipped to deal with any issues which may arise from here on in.

If anyone can impart advice on the stages/processes from signing contracts to closing the sale I would be grateful. In particular, any hindrances/delays that cropped up along the way.
 
DMBL said:
I
If anyone has had similar problems with their broker I would be interested in hearing how they overcame them.

As a first time buyer I had depended on my broker for information and guidance. Obviously I can no longer do that and would like to be equipped to deal with any issues which may arise from here on in.
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Ditto first time buyer who hadn't a clue. My solicitor was dealing with him on my behalf until I ditched him recently. Buying a new home is stressful, but when they make it more so, its just not on. There isn't really much to be done from now til close of sale, mainly all that is done at the end, pending on whats written on your letter of approval. My dad gave me a gift so I had to get him to sign a waiver, also arrange life assurance etc. Your solicitor should be able to tell you.
 
I had applied for a 100% mortgage from the "mortgage lender". At the same time I applied for a 10% short term loan from the "deposit lender". Both through the broker but from different financial bodies.

The "mortgage lender" will only release the 100% mortgage on completion. Hence they allow you to get a 10% deposit loan from a particular "deposit lender" and they re-pay the 10% directly to that "deposit lender" at completion stage. The balance is issued to the builder.

I could not recieve this 10% from the "deposit lender" in time so I had to go elsewhere to get it.

The broker told me the following:
The "mortgage lender" said it was ok to get the 10% elsewhere myself in order to meet the deadline. However the broker is saying that I must still get the 10% loan form this particular "deposit lender" and use it to repay the 10% loan that I have taken out myself. My question was do I have to do this? Surely the "mortgage lender" can re-pay the 10% loan I took out the same way they would re-pay it if I had received the 10% from the "deposit lender"
 
If a loan offer has already been issued stating that funds will be used to pay off loan from named "deposit lender", then that may be the complication that the broker is latching onto and not letting go.

If such a clause exists, talk to your solicitor to see if the eventual funds from the 100% drawdown can go to you direct to repay the loan you sourced yourself.

On a more general point, what do we use brokers for? I use brokers to get me a good deal and to save me hassle in comparisons. It stops there. Are even the good brokers adding any value to a transaction that is already crowded with participants? I really don't believe the "I've never done this before" reason needs to be a reason to let the broker get their hands on ANY documentation. If the bank needs a doc, they can ring you and you get the doc or request from solicitor. If solicitor needs a doc, he contacts you or the bank direct. It does not need experience to act as the go-between between solicitor and bank. Just an ability to take instruction from one or the other. My most recent transaction was hairy in terms of timing etc., but the presence of a broker in the equation beyond the mortgage shopping phase would have made it even worse. What value are mortgage brokers offering really once you've decided you will tie the knot with a specific bank?
 
nt00deep said:
On a more general point, what do we use brokers for? I use brokers to get me a good deal and to save me hassle in comparisons. It stops there. Are even the good brokers adding any value to a transaction that is already crowded with participants? I really don't believe the "I've never done this before" reason needs to be a reason to let the broker get their hands on ANY documentation. If the bank needs a doc, they can ring you and you get the doc or request from solicitor. If solicitor needs a doc, he contacts you or the bank direct. It does not need experience to act as the go-between between solicitor and bank. Just an ability to take instruction from one or the other. My most recent transaction was hairy in terms of timing etc., but the presence of a broker in the equation beyond the mortgage shopping phase would have made it even worse. What value are mortgage brokers offering really once you've decided you will tie the knot with a specific bank?
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So what do you suggest? Use a broker to find the best deal for you and then go direct to the company?
 
you may still have a good deal on the 100% but wish to extricate yourself from the 10% side order. Is the brokers 10% side order more expensive than what you got yourself ??

I cannot see the 100% lender offer being tied to the 10% if its someone elses money. Therefore it should be safe.

Your broker simply failed to perform. Order them in writing to confirm the 100% offer is still safe despite their non performance .
 
Hel_n said:
So what do you suggest? Use a broker to find the best deal for you and then go direct to the company?
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Yes !

The loan offer should be accompanied by a list of what the lender requires to proceed. There is no need for a broker to act as a go-between in the collection of that documentation.

If a loan offer needs to be altered (date extension, extra money, different property, different conditions) there is no need for a broker to intervene, unless you think you need someone to fight your case.

If a solicitor needs any info from the bank, they can contact directly or come through you.

Use the broker to get you in the door with a good offer and take over the document management yourself.
 
A bit harsh on the broker, no? n2oodeep.
You use the broker to get the best deal for you and then go direct so the broker earns nothing in commission.
If you have no scruples then I suppose this is the route for you but going forward think of the consequences. If every client did this then in the future you and everyone else is going to have to go to every individual bank and waste time trawling through different loan offers as all brokers will have gone out of business as they have not been paid any commission since you went direct.
From reading this forum a lot of brokers are brutal but it seems many do a decent job and deserve to be rewarded for this?
I have nothing against those who have the time to ring around, use forums such as AAM to find the best buys and then go direct but to use somebody else for your own benefit and then go direct is a bit Machiavellian.
Well that's my two cents!
 
Hel_n said:
Use a broker to find the best deal for you and then go direct to the company?
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You are assuming a broker can get you the best deal. Brokers can't always get you the best deal because some are tied agents, others have limited agencies and National Irish bank doesn't deal with brokers!
 
NorfBank said:
is a bit Machiavellian.
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I bet you were watching Big Brother over the weekend! :D

Just to add to the debate - there are good brokers and there are bad/imcompetent brokers in exactly the same way as there are good and bad bank branch mortgage advisers. A good broker should save you time and hassle and be totally impartial in their advice. It's a shame that NIB don't (as yet) offer their products via brokers though.....

Sarah

www.rea.ie
 
They haven't dragged him up to boost ratings have they?
Would be interesting though.
I shall tune in!
 
A bit harsh on the broker, no? n2oodeep.
You use the broker to get the best deal for you and then go direct so the broker earns nothing in commission.
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Nope. My broker got off lightly. He did the shopping. I'm not saying it was the best deal. It was a good deal. He got the full commission. Consider it an arrangement / introduction fee.

However, I did not need a remote secretary. In fact, rather than not needing one, I explicitly did not want one. I was happy to take the secretarial duties on board myself because I trust the banks and solicitor to tell me what they need and when they need it. I don't need a broker to act as postman and doc control. My broker did not wait to be asked twice when I took control, and was glad of the commission when it came through.

My decision was not based on any bad experience with a broker. I just did not see what value they could add once I had my loan offer, but no problem with them getting paid for what they did for me up to then.

Dating agencies have a function in life, but they don't need to be involved in arranging the wedding. Horses for courses
 
nt00deep said:
My decision was not based on any bad experience with a broker. I just did not see what value they could add once I had my loan offer, but no problem with them getting paid for what they did for me up to then.

Dating agencies have a function in life, but they don't need to be involved in arranging the wedding. Horses for courses
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A valid point. A broker's role is to advise you on the best deal for your circumstances and arrange that that mortgage is delivered to you and your solicitor as quickly and painlessly as possible. He/she should also be able to advise you on the best mortgage protection and household insurance (if you require them) but - unless there are problems post offer - our role is over. In reality there are a myriad of reasons why we do stay involved through completion and beyond but we tend to shy away from the delivery room!

Sarah

www.rea.ie
 
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