survey fees

britmark

Further to my earlier thread 'survey fees' i contacted the EA and now they are saying that the £250 we gave them was for valuation fees, and we agreed to pay them when we signed the AIP form. Well we did'nt atcually see this form as the mortage broker filled it out and he just asked us to sign it.

Anyway in our Personnal illustration it says the valuation fees are free, and they say we will get £200 back as £50 is for admin.

Not very happy, how long will it take to get our money back?
Thamks

Mark

Bossyboots

Surely if you signed the form then you did see it, you just didn't read it before signing. Make that a lesson learned, never sign anything before reading it thoroughly and questioning anything you don't understand or agree with.

As for how long before you get your money back, I doubt anyone can answer that but if it was me, I would be on at them constantly to refund the money that they have taken as otherwise I can imagine they will hold on to it for as long as they think they can get away with it.

Put pressure on your broker too. The cynic in me wonders whether this is actually a con they are pulling between them and that they have successfully held onto "valuation fees" because others haven't queried it. However, you would have to judge that for yourself but don't let them rest on their laurels. If the money was not meant to be paid, then it should be refunded without delay.

AndrewSmith

Tell them you are going to complain to their compliance department and request their details.

Also tell them that you will, if necessary, go to the FSA and the ombudsmen as this type of practice is absolutely disgraceful and is nothing more than an underhand tactic by the EA and broker to retain you as a client and stop you taking mortgage advice elsewhere. Any decent company or individual would trust in their professionalism and the way they deal with their clients would be enough to retain a client.

You should never hand over a cheque or payment made payable to anyone other than the lender concerned unless the case is being placed through a specialist 'packager' (normally severe adverse cases). NEVER hand over any kind of fees at AIP or DIP stage as you do not know whether this will be the mortgage you are going to take until the AIP or DIP has been approved. Again, another way of making you stay with that broker.

If you make enough fuss in their office they will refund you the money as they will not want you putting others off. Also ask for a copy of the document stating about the fees and what is refunded. Ask them for a copy signed by you. If they dont have one you have absolute right to a full refund without delay, unless the fee has been used by the lender for the purpose is was paid, (ie to book the rate or carry out the valuation).

Andy

davilown

AndrewSmith wrote:

NEVER hand over any kind of fees at AIP or DIP stage as you do not know whether this will be the mortgage you are going to take until the AIP or DIP has been approved. Again, another way of making you stay with that broker.

This is what my current'independant advisor is asking me to do before they let me have a AIP - they want £175 up front and will not return it if I don't use the offer. If I do use the mortagae they then want another £175.
Is it therefore my best option to stay away from this type of advisor?

cheers

:beer: monster

AndrewSmith

Different brokers work in different ways. Personally I have never had a problem retaining clients or having clients take advice then go elsewhere.

I can, in some cases, see the benefit of securing a minimal deposit from a client once the AIP has been granted and the full application has been submitted, because to this point the advisor will have committed about 5-6 hours of time to the case to get to submission of a full application.

An AIP or DIP however takes minutes, and if the advisor is confident that he is recommending the most appropriate product for the client then retention should not really be a problem. You always get the odd one who will use you as a source of free info but then you can't win them all. I generally retain around 8-9 / 10 people I initially meet (of phone fact find).

AS to whether you choose to use this broker, that is your choice, I would merely question his motive of taking a deposit at AIP stage.

Andy