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.
Packagers are also sometimes able to negotiate exclusive mortgage deals with lenders that are not available directly to individual and smaller brokers, such as reduced interest rates or free property valuations.
Mortgage packagers often work with a limited number of lenders, or specialise in a certain niche market.
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.
However, with a mortgage packager, the case is assessed and underwritten before it gets to the lender, reducing the risk of rejection.