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Original poster

Need some advice r/e dp's buisness and the credit crunch (mortgages)

41 replies

lilyloo · 02/05/2008 09:00

Some of you may have seen my dp's ad on mnet and i know he has helped some of you previously.
The problem we are having is with the recent credit crunch things are very quiet at the moment and we just don't know where to go with it.
He set up 18 months ago and we have put everything we have into this buisness.
Unfortunately we don't have enough capital in the buisness to ride this for long.
So any help you could offer would be massively appreciated.
I am also on mat leave at the mo so that doesn't help as my wage doesn't even cover our shopping.
Do any of you use brokers , how did you find them ? Would it be worth doing a mail shot ? Or is it time to give up the ghost!
DP has already started job hunting but i feel that this was our dream of a balance of family life and work that's going out of the window!
He works really hard and i am just so down about it all !
Thanks if you got this far.

OP posts:
macdoodle · 02/05/2008 09:18

oh Lily so sorry I really know how hard it is - H business set up 2004 did ok for first few years then combined with his shenanigans and business going down it is failing miserably and not even breaking even - am terrified as business loan secured on my house....
Sorry for hijack back to your question - I use an IFA/broker but I have known him for 10 years he arranged our first ever mortgage - I originally got him through the company he worked for which specialised in my field and he has slowly gained my trust and I have followed him through a couple of company changes - he doesn't charge an upfront fee and is always open as to what % he will earn from any deal he brokers....I have recommended him to a number of my friends and I suspect this is an issue with IFA (for some reason people don't trust them and are wary of those they don't know - I have actually discussed this with mine and the expectation that IFA's are out to fleece you and not expected to earn a living like anyone else)..
Afraid not much useful to add could your DH do something else part time to see what happens ?? I know how much of a worry financial difficulties are - am almost looking forward to going back to work now as I can boost my income again

bubblerock · 02/05/2008 09:22

Hi Lilyloo - we're also self employed (in retail) and feeling the pinch at the moment.

I took a look at the website - is it your DP on his own? If it is, can he make the site a bit more personal as it's quite stark, it would be nice to see a picture of him.

Where does he advertise other than online? I think that a lot of people with internet access would check Moneysavingexpert and do their own research into mortgages rather than use a broker so the people without internet access would be more likely to use a broker.

Sorry I haven't any useful ideas for you, I know how hard it is to think about returning to employment when you really want to be self employed

Original poster
lilyloo · 02/05/2008 09:40

Thanks ladies

McD i know that's the thing he has now built up a small client base who will likely return to him but obv there deals will be tied up for the next couple of years. Sorry you having it so tough too, that must be a real worry it being tied into yuor house

Bubble yes it is his own , that's really helpful about the site will let him know about altering it to be more personable. That's a good idea.
He doesn't really advertise anywhere else this is what he needs to spend money on i think but it's just where would be the best place to spen it iyswim. As we don't really have it. Sadly we knew the first 12-18 months would be tough but we hoped that now we would start making some money and reinvest it back into the buisness.
We had thought of mail shot or paper but not sure ? Sorry you finding it hard too

OP posts:
conniedescending · 02/05/2008 09:45

I feel for you Lilylo

We're desperately trying to re-mortgage and have had problems with our broker not doing what he said he was and thus we've missed out on the deal we wanted as they've withdrawn it. I think the problem is that banks have tightened the lending criteria and it seems no one will lend to us anymore - the main reason being cited is we don't earn enough because they are only taking my husbands basic salarly now and not his commissioned earnings.

So stuck with Northern Rocks SVR and cant sell because it'll just be stuck on the marker like all the other houses in our village.

I think in your circs it's wise for your DH to look for alternative employment just in case things don't pick up. Word of mouth is how we selected our broker but we're now trying to sort a re-mortgage ourselves with little sucess.

soapbox · 02/05/2008 09:47

I think he would do well to have a lot of information on his website about remortgaging with good new fixed rates.

People might be slowing up in buying houses (one conveyencing solicitor I know has only one case at the moment - he normally has 20 or so at any one time) but people are coming out of fixed rate agreements and need to find a good alternative rate. Making a lot more of that would be good!

Original poster
lilyloo · 02/05/2008 09:49

Thanks Connie and sorry your broker has let you down.
This is part of the reason why dp set up in the first place as we knew people who had been treated shoddily by brokers or charged fees unecessarily. Sadly it looks like we have just done this at the wrong time i guess!
Am just so gutted that all the money and hard work we have put into it hasn't worked!

OP posts:
conniedescending · 02/05/2008 09:49

sorry -that was all about me and not you .....I guess what I meant to say was the lending criteria is so strict that there are so many people unable to re-mortgage at present so if/ when things pick up and lending criteria relaxes your DH may find a influx of people desperate for decent deals.....I'd be first in the queue

Original poster
lilyloo · 02/05/2008 09:52

Soapbox thanks that's a great idea i think we are just so down about it at the moment we can't see how to move forward despite us wanting to keep it afloat !
That's what i feel, that people will still need mortgages and i have said it's surely not just him, that's good to know about the solicitor. (not good though iykwim)

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conniedescending · 02/05/2008 09:52

ooh just another thought - Northern Rock have a list of brokers who they are sending customers to as they are trying to be rid of us all....perhaps he could see about getting onto that list??? Sorry if thats a silly suggestion, I know little of these matters.

Original poster
lilyloo · 02/05/2008 09:55

Thanks Connie , your right the banks have accepted all the money the government handed out but haven't used it to help people.
The problem being how long could this go on for ? I know it's the small buisness that suffer for it and the consumer too !
Maybe your right McD about him getting a part time job.

OP posts:
Original poster
lilyloo · 02/05/2008 09:56

Anything helps i don't know much either but just want to give him some positive things that may help , any suggestion appreciated really !

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Original poster
lilyloo · 02/05/2008 10:18

1.not charging a fee (he does this already)
2.open about the comission he earns.
3.advertising elsewhere other than the net. Any ideas ?
4.Making site more personable , including picture of himself.

  1. Adding good fixed rate deals to site.

These are all good ideas would appreciate any more esp on the advertising side of things.

Thanks

OP posts:
bubblerock · 02/05/2008 11:13

Does he go on ukbusinessforums at all? They are fab and could maybe offer some advice, search old messages too for previous advice. I know myself and Katymac have had advice from members. Worth a try!

I guess the cheapest way to advertise locally is in shop windows - make a nice card though so it doesn't look dodgy and focus on the remortgaging advice. It may not bring any results but it's cheap enough to take the risk.

Online, is his site/details on every single free business directory that he can find? When we ran the hotel I just put it on every single free site that I could to get exposure.

Will keep thinking for you. If he needs extra cash could he just get a part time job to tide you over? With WFTC and CTC it helps.

bubblerock · 02/05/2008 11:18

Just googled firstforfinance and see he has put himself about a bit (so to speak ) so that's good!

bubblerock · 02/05/2008 11:24

Have a look at this 30 ways to market your business on the cheap

fym · 02/05/2008 11:30

does he do business networking?? I do (I sell jewellery) and the mortgage broker in my ntworking group gets loads of business...

look here or CAT me for some more info

Original poster
lilyloo · 02/05/2008 11:38

thank you so much ladies i am not sure if he does either of them you mentioned but will ask him.

He does have buisness cards so might be worth getting a couple of them blown up for shop windows etc.

Thank you again , i really want it to work we don't want to make a lot of money just to pay our bills it was more about him having some time with the dc's whilst they are small.

We just don't want to give it up and then the tide turns as we cannot afford to set it up again.

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Original poster
lilyloo · 02/05/2008 11:59

The sites look really good , that will be helpful for him to bounce ideas off or ask for advice i'm sure.

That's part of the problem when you are a small buisness you don't really have anyone to speak too.

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Original poster
lilyloo · 02/05/2008 12:41

Not sure about him making a you tube video though

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Original poster
lilyloo · 02/05/2008 13:45

FYM he has done business for breakfast and never got anythign out of that.
Does it cost to do it ?
Sorry don't have cat.

OP posts:
fym · 02/05/2008 19:24

yes it does cost, but I have found it worthwhile... as it is a closed group you only ever can have one mortage broker, so they do quite well out of referrals...

It is worth visitng a local group (£10) to see what it's about - what area are you in? I'll recommend someone to contact....

Original poster
lilyloo · 02/05/2008 21:16

Rossendale Lancashire thanks

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fym · 03/05/2008 08:01

Lilyloo

E-mail these people - Morgan Rothwell or Mike Holman and they will point you in the direction of a meeting he can visit....

[email protected]
[email protected]

Contact number 0845 612 5758

Original poster
lilyloo · 03/05/2008 14:24

Thanks fym

OP posts:
Paddlechick666 · 03/05/2008 20:56

hi lily, really really sorry to hear about business being so slow for you guys.

i haven't any amazing ideas i'm afraid. i'll keep recommending him tho and i'll ask my bro to do any referrals if he can. his business is really suffering too in this climate.

i think the idea of targetting the re-mortgage market is a great one. there is so much press about that at the moment.

i so wish i could help more. you guys were my lifeline last year and i wish i could return that.

oh, just another idea, maybe he should try getting affiliated with the affordable housing schemes. when you go for that you are pretty much restricted to the IFA that the HA recommend. when i investigated with metropolitan housing last year their guy was supposedly a home-buy, part-buy/part-rent specialist however as we both know your dp showed him right up to be useless!

maybe a part time job to get you thru this lean time is a good option. i'd hate for you guys to lose the dream and i am certain this situation will pass without becomming the debacle of the late 80s.