Jonathan Burridge Blog

Monday 22nd November 2010

Further investigation and it became clear that because the clients income was a combination of salary, dividends, rent paid to her by her business and repayment of directors loans made to the business,  most lenders stance of self-employed income simply would not cut it. Our broker told her to put the kettle on while he made some calls and he would ring her back, he ended the call and rang Aldermore. First call and the deal seemed to fit. That afternoon there some toing and frowing as information was gathered and the AIP run, the client provided a letter that been prepared for one of the many other lenders the other broker had tried to place the application with. Our broker uploaded the reference and later that afternoon Aldermore replied saying if the information was confirmed and signed off by an accountant with suitable qualifications for the bank they would be happy to proceed (subject to all the other bits and peices).

Our broker was made up. Back of the net. Six hours, give or take, and he had placed a case another broker had taken nearly a month to go no-where with. It was early evening now and he and the ex-client traded voicemail messages a few times, our broker leaving brief messages, looking forward to breaking the news in person that not only had the deal been placed, but also it was interest only and sub 4% without massive fees.

Next morning I get the call. Our advisor is dumb-founded. The client had emailed late in the night before to say that the other broker had finally come back with a deal. She said in her email that she should stay with him as he had done so much over the three weeks beforehand. Yup, “so much”. A little bemused by the mail and recognising the rate quoted, our man rang the client  at first knockings and she confirmed that she was going ahead with “something called a Let to Buy deal”. Our man wished her the best of luck, hung up and this time called the other broker. The conversation went something like this;

“Hello, I had a call from <client x> yesterday as she was concerned that you were not able to place her mortgage.”

“Yeah, I know, she told me – clients huh? I’ve done the deal now so not to worry.”

“But you have done it on a Let and Buy basis? I have placed it status, with Aldermore and on a residential remortgage rate, which, afterall is what is happening.”

“You cant have placed it with Aldermore, they said no when I tried them.”

<long pause> “Yeah, anyway, I have placed it, it has passed credit score and the valution is being done the day after tomorrow. The client is happy with the rate and my service.”

The interaction with the client and call with the other advisor were completely focused on a fast solution and we had not fully completed our factfinding. It was probable that over the coming day, had the client decided to proceed with our brokers advice, it would have become apparent that she omitted to tell us she was going to move out and let the house. Right?

The moral of this story is that we must slow down and make sure we understand everything that is going on. Trying to win every deal might lead us to make conclusions that are il-considered. I had beleived that in an industry where one of three has left and there is such a focus on quality from our regulator and providers there would be little room for anything other than complete professionalism. We have booked some time to spend training on our factfinding techniques as we are obviously off-key a little. In the meantime, we hope that our brokers ex-client’s mortgage proceeds satisfactorily and she finds a suitable home to live in while her current property is let.......