Broker Fee for declined mortgage application

selfemployed121 · 14 December 2017 at 11:06AM

Hi, I need your assistance:-
I used a mortgage broker to apply a mortgage . Unfortunately, the lender declined my application due to defaults, which occurred nearly five years ago. The broker is not refunding the fee as he is blaming me for the inaccurate disclosure. However, the application was made on the premise that fee will be refunded if my application is declined.
Can anyone suggest what options are available to me?
Company:- Freelancer Financials
Mortgage Adviser: [Removed]

haras_nosirrah · 14 December 2017 at 11:15AM

what does it say on the terms of business you signed. Does it say their fees are refundable if your mortgage is declined. Ours say that non disclosure may mean loss of fees.

ACG · 14 December 2017 at 11:17AM

What does the fee agreement/terms of business/illustration say about fees?

Why would you not tell the broker about adverse credit, it must have come up as a question in some form or another.

goodwithsaving · 14 December 2017 at 11:25AM

Firstly, I don't think it's at all appropriate to put the broker's name on this forum. Secondly, did you declare defaults? Brokers can only guide based on the information that they were provided with. Thirdly, is there anything in the terms of engagement regarding this? Was it an 'impression' that it may be returned, or fact?

Neutrinno · 14 December 2017 at 11:52AM

Not very fair to name and shame/slander the broker in question without providing the full details of the terms you agreed to, I think you should edit your post. Plus it sounds like you have gave the broker inaccurate information regarding your credit history, he could of wasted a lot of his time on your case because you haven't disclosed your previous credit issues.

It would be sensible to raise a complaint with the company before posting their details here.

dunstonh · 14 December 2017 at 12:02PM

Not all clever for you to name the individual when it is you that actually did wrong here but remain anonymous.

Can anyone suggest what options are available to me?

it all comes down to what your contract/fee agreement says.

A very common model is that the broker will refund the fee if they cannot get the mortgage. However, if the mortgage is declined due to non-disclosure on your part, then the fee is not refunded.

If the fee agreement states that is their position then they are within their rights to not refund. The agreements should always state any refund terms.

kingstreet · 14 December 2017 at 12:14PM

Did you/Were you asked to produce a copy of a credit file before any lender recommendation was made, or did the broker take you at your word you have a clean credit record?

Is the broker working on an alternative?

haras_nosirrah · 14 December 2017 at 12:24PM

Also how much are we talking about fees wise? If the case has passed an aip and then gone to full application with this only coming to light after weeks the client may have spent many hours on this case. If it is a declined aip then obviously much less time has been spent.

Did they ask you if you had any credit issues and you said no? I would expect the broker to ask.

selfemployed121 · 15 December 2017 at 10:48AM

Why you say so!
It was mentioned in our discussions and I was assured that fee is refundable if mortgage is declined. I was under impression that broker will check that lender has accepted me initially and then send all documents. What service has broker provided me for his fees? When I was doing application, he was assuring again and again that fee would be refunded and after that he is asking me to read the small print.
That is a fact and I am very right to put his name here on this forum...

mailmannz · 15 December 2017 at 10:52AM

Why did you pay for broker advice???

Did you get an agreement in principle and then your application was rejected when they did a more complete check on you?

Mortgage_Adviser · 15 December 2017 at 11:05AM

OP, is there any evidence in writing that you have informed broker of the defaults? Or is it basically you word against his?

Broker Fee for declined mortgage application

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free