A Mortgage Packager and His Roll in Buying Property

What is a mortgage packager?

They are basically processing people or departments. They take care of all the documents required for an application (eg proof of earnings, valuations, banks statements etc). When dealing with a mortgage packager they would probably get you to fill in a generic mortgage application form. Then they might also get you to sign documents, such as a direct debit that is specific to the lender.

In short, they put all the paperwork together on behalf of the lender (including the basic property survey) and makes sure everything is present and correct.

What is the advantage of using a mortgage packager?

If you are using a good one, there are many advantages we have listed a few below.

• They are different to most mortgage brokers in that they have the advantage of being able to put the whole application together, including all the relevant documents, before the lender gets to see them.
• When everything is sent to the lender, things are normally quicker and in theory it takes less time for the lender to o.k. the deal because they normally don’t have to waste time chasing paperwork because good packagers make sure that they have obtained everything from you and any other parties and that everything is present and correct.
• If your application is borderline and it gets refused by one lender a packager can simply switch to another lender. Because you have already filled out generic forms there is normally minimal paperwork and all you have to is potentially sign a new direct debit and perhaps declaration for the new lender.
• If the valuation doesn’t come back as you expected, and you are convinced it should be higher, you maybe able to get a new one done and if it comes back higher, use that one instead. You are able to do this because the mortgage packager has put everything together before the lender sees it. If you where going done the traditional route and applying direct, the lender will have already have seen the valuation and most likely only be prepared to lend you less.

Are Packagers essential to your property business?

Absolutely, many investors have survived for years without using them, but increasingly (especially in a difficult property market) they are becoming an essential part of the astute property investors power team.

There are lots of good mortgage brokers that are now also doing most of there business with the help of packagers. This helps them to be more efficient and takes some of the burden of them as well.

If you want o grow you business quickly and professional, then they are worth considering.

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