Mortgage packagers process mortgage applications, usually on behalf of

mortgage brokers A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses. Traditionally, banks and other lending institutions have sold their own products. As markets for mortgages have become more competitive, ...

, for submission to lenders. Services include checking clients' credit files, instructing

property valuation Real estate appraisal, property valuation or land valuation is the process of developing an opinion of value for real property (usually market value). Real estate transactions often require appraisals because they occur infrequently and every prop ...

s and checking an application fits lending criteria. In exchange for providing these services, the lender will usually pay a commission to the packager, which will usually be shared with the

mortgage broker A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses. Traditionally, banks and other lending institutions have sold their own products. As markets for mortgages have become more competitive, ...

. Packagers are also sometimes able to negotiate exclusive

mortgage A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any pu ...

deals with lenders that are not available directly to individual and smaller

brokers A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be confu ...

, such as reduced

interest rates An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, th ...

or free

s. Mortgage packagers often work with a limited number of lenders, or specialise in a certain niche market. This expertise allows them to help the

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. Normally when a buyer applies for a mortgage, the buyer spends time completing mortgage application forms with a

. The mortgage application forms are then sent directly to a lender on the buyer's behalf. Once the lender is in receipt of the application and supporting paperwork they start to process the application they have received, this includes applying for the buyers employer reference, accountant references and a mortgage valuation. With this process, clients run the risk of the lender rejecting the case if the lender is not happy with everything that has been presented to them, leaving the client having to start the whole process again. However, with a mortgage packager, the case is assessed and underwritten before it gets to the lender, reducing the risk of rejection. Should the application no longer be suitable for the lender in question, there is also the facility to switch the application to a different lender without the need of completing a new application form.

References

{{Cite web , title=FCA Handbook , url=https://www.handbook.fca.org.uk/handbook/PERG/4/15.html , url-status=live , archive-url=https://web.archive.org/web/20150922002850/https://www.handbook.fca.org.uk/handbook/PERG/4/15.html , archive-date=22 September 2015 , access-date=21 February 2024 , website=FCA Mortgage