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What is a mortgage packager?
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A mortgage packager is slightly different to a mortgage broker. They
have the advantage of being able to put together the whole application
for your mortgage BEFORE the lender sees it.
Normally when you apply for a mortgage, you fill out a form with the
mortgage broker, and it then gets sent to the lender. Then the lender
processes the form, applying for your employer reference, accountant
references and your survey - as well as wanting to view your statements
and finances. This process runs the risk of the lender rejecting you
if they are not happy with everything they find.
With a mortgage packager they actually do all those things BEFORE it
gets to the lender - reducing the risk of regection. They also are usually
able to get special deals and exclusive packages not available to the
individual and smaller brokers. In the current climate it is certainly
very useful to be able to see the valuation before it goes to the lender,
in light of the fact that buy to let lending normally rests on the rental
valuation.
Where clients are convinced that the rental or value should be a higher
figure than that quoted by a surveyer. It gives an opportunity to get
comparable properties and submit a case to the surveyer who may then
be able to increse the figures. Of course, if the case goes straight
to the lender, then a lower amount would normally be offered. Genrally
using a mortgage packager saves a good deal of time and effort on everyones
behalf and makes the process alot smoother.
Just a point to be aware of when you are using a packager, if the valuation
does not stack up, and you have to get the property re-valued, it may
be best to take the advice of the 1st valuation to protect your own
interests. If you get a property re-valued to suit yourself, and then
need to rent or sellthe property, you may find that you struggle with
your payments if the rentals don't cover.
I found Savills Private Finance to be great packagers. I worked with them for several years - and now refer my own friends to them. Little tip - if you want the kind of "Top of the pile" relationship I had with them - get to know your personal advisor well, treat them with respect, make them feel good about working with you - and NEVER be rude or impatient with them.The nicer you are to people the more they will enjoy / want to work with you.
Based on lots of experewince with different types of Brokers -I would always choose a mortgage packager now to do my mortgage. Low risk rejection!
