Unexpected last minute charges £800

mrs_skint

Hi there

I wonder can anyone advise me before I go disputing something! I have just switched over my mortgage to a new lender and used FSA regulated brokers to handle everything for me.

My completion date is today, however I received a call from the solicitors yesterday to tell me that my previous mortgage company is charging an extra £800 month's interest because they didn't receive a month's notice in writing - even though my brokers asked for a redemption figure a month ago.

Can I dispute this or is it my fault? I have paid £4,000 brokers fees on top of solicitors and valuation fees and really cannot afford an extra £800.

Any advice at all would be appreciated.

Thanks v much

Gloria

happybroker

£4k broker fee is huge! is it too late to pull out and find some one who as part of "treating customer fairly" charges a sensible fee?

I am guessing the lender is one that specialises in the helping people who have had financial difficulties as they usually ask for a months notice or interest and I'm also guessing the "broker" is one of those that specialises in that area also with fees like that.

You can't avoid paying the £800. You can avoid paying the broker however by finding one that either doesn't charge or at least has a more sensible fee.

Toughluck

Hi gloria,

Who is your current lender? THey broker should have noticed that you had to give one months notice. If it is someone like GMAC, Preferred or someone like that then they stand firm and will make you pay it unless you wait one more month so that they have been given notice.

Was it really £4K for the broker fee or was it £4K which was lenders fee, broker, sols fee etc?

mrs_skint

Hi guys

My current lender is Mortgage Express. We are changing over to First National and yes we have had financial problems in the past as I took a couple of years off work to look after the kids.

Too late to change brokers now though as completion is going through this morning. Yes it was £4k for brokers, £800 approx for solciitors, also valuation fees plus this unexpected charge!

minimike2

That is disgusting.

Do you mind me asking how much your mortgage is for?

Toughluck

If it was Mortgage Express I would imagine you completed with GMAC and they sold that mortgage onto M express.

Just read those fees!!!!!!!!!!!!!!MY GOD. OK so £4K broker, £800 sols, approx 250 val and £1,695 for FNB. Nearly £7K. Someone pass me the vodka and 20 Embassy!! Please search more carefully next time round when getting a mortgage.

Cranston_2

it's your fault.

mrs_skint

Hi minimike2

My mortgage is for £187,000

Toughluck

Makes it little better that you have a substantial loan size, however the proc fee from First National will be at least around 0.85% so they'd be getting at least £1,500 commision from FNB.

happybroker

still, a 2% fee?

I am confused as to why a broker would think a fee of that size is fair but also why a % of the loan amount would be fair too as no more work would be involved in arranging a £250k loan than a £75k loan, the pleasing part of the bigger advance is the extra commision the lender pays, not that you can get more money out of a client, surely.

I suppose that would be another thread though eh?

mrs_skint

Feeling a bit stupid at the minute but I'll know next time! In fact next time I might just skip the brokers and do it myself - I think with a bit of research from an informative website like this one I'll probably save £4K!

Thanks for your help all - it's just good to have a moan!