Who are mortgage packagers?
Mortgage packagers are firms which process mortgage applications on behalf of mortgage brokers for submission to mortgage lenders.
Mortgage packagers will do things such as:
- Check credit scores and histories fit with the mortgage lenders criteria
- Instructing property valuations
- Ensure all mortgage documents required by the mortgage lender are present
- Communicate any concerns with the mortgage broker
Mortgage lenders will usually pay a commission to the packager, which will usually be shared with the mortgage broker.
Why do mortgage brokers work with mortgage packagers?
Mortgage brokers may work with mortgage packagers due to the fact that mortgage lenders may give them specific deals only accessible if a mortgage broker submits an application through the mortgage packager.
This deals offered to the mortgage packager could be reduced APRs, property survey discounts etc.
These sort of deals are usually not available to smaller mortgage brokers and so working with a mortgage packager will be seen as a good benefit.
Mortgage packagers often work with a limited number of mortgage lenders and tend to specialise in a certain niche market such as self-employed mortgages, bad credit mortgages, new build mortgages, mortgages with dmp, mortgages for flats, mortgages for high rise flats etc.
This expertise allows them to help the mortgage broker ensure an application is made to the right lender and minimise the chance of an application being rejected before it is submitted.
The services of a mortgage packager cannot usually be accessed directly by members of the public.
A mortgage packager greatly reduces the risk of being rejected by the mortgage lender as a mortgage packager almost acts as the mortgage lenders underwriters and their experience allows them to spot issues with a mortgage application, advise the mortgage broker and then reallocate the case to a mortgage lender who will be more likely to lend to the borrower than risk a mortgage rejection.
If you are looking for a mortgage why not speak to a mortgage broker?
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.