Martins View On Using Mortgage Brokers...

Wickedkitten

We were recommended a mortgage broker here in Cheltenham calling the Falcon Group that was highly recommended by people at my partners work and they have been absolutely fantastic arranging our mortgage. I certainly don't begrudge them the fee that they are getting paid at all.

lurker53

Wickedkitten wrote: »

We were recommended a mortgage broker here in Cheltenham calling the Falcon Group that was highly recommended by people at my partners work and they have been absolutely fantastic arranging our mortgage. I certainly don't begrudge them the fee that they are getting paid at all.

they are a large firm - in fact more like a network, so each person or firm within the group would be offering different service fee/ levels

Debs68

Hi - this may be going off point a little but didn't know where else to ask. I was speaking to someone recently about financial difficulties and they told me to ask around or look into it.....

Basically

About 5 years ago I decided to remortgage as I need some extra cash. At the time I had a mortgage of 45k and the house was worth about 100k. Single mum - working and getting tax credits - I wanted to borrow an additional 20k. Because I had loans / credit card etc at the time...I wanted to clear these as being on a low income was proving difficult to meet repayments every month - just keeping head above water.

I went to a local company - Estate Agents / Mortgage brokers who are still in business. They charge £100 fee for finding you the right mortgage.
The girl who did it for me at the time found a company who were willing to lend. This was on a self certification...no proof of income. The broker stated I earned 29k a year to secure me this mortgage.

Everyone I speak to now says that this was fraudulent on her part and she secured me a mortgage that I couldn't really afford - being on less than 10k a year salary really. I only realized this a few months ago as I phoned my mortgage company looking to borrow additional sums and was told they only lend to self employed - not employed.
I'm on a better income now - not great though - but have struggled since getting this mortgage - it isn't endowment - I pay mortgage insurance monthly. I barely keep my head above water and end up with debts, borrowing just to keep everything paid.

My friends say that she pushed for this mortgage regardless of how I would end up paying it...and at a time of desperation I just signed everything she handed me...as you do...as long as you know the money is coming...you will.The process took less than an hour as I only had to show her my bank statement and tax credit awards but she didn't have to produce these to the lender she had set up for me.

Was she in the wrong ?? Did she act illegally / fraudulently and would I have any comeback if I pursued this ???

Any advice would be greatly appreciated. Thanks.

dunstonh

Debs - please dont duplicate posts, especially on a mass thread like this.

Will anyone wanting to respond to debs please use
http://forums.moneysavingexpert.com/showthread.html?t=1468251

Met_Bobby

don_robert wrote: »

thanks.. i find this very useful.. :T

What do you find most useful Don?

becky167

I recently contacted a mortgage advice company and they explained me everything I needed to know.

I would recommend everybody to speak with someone who knows about mortgages in order to get the best deal now with the finantial crisis.

Becky

_Andy_

Ignore the pathetic spam above. (So lame the spammer can't even spell)

alams

Hi everyone!!

Just a bit of advice required!!

Nearly two years ago, i bought a house for £180k. My credit rating wasnt as good, so am told, and thus ended up taking a sub-prime mortgage. 70k deposit (remortgage of another house) and 110k on mortgage, fixed for two years and then variable. Fixed rate period is due to end soon, what is the best way forward??? to save money!! switch lenders??

Hope you can help!!

BuffFatBoy

Dear Fellows,
I have a situation I am really confused about and would appreciate advice. I'll try keep it short...

I wanted to buy 5 flats in Plymouth within the same apartment complex - these were for student-let only, as the University of Plymouth is "next door". I enlisted the help of a reputable mortgage broker (large firm), which specialized in Buy-to-Let mortgages.

They found a mortgage which supposedly met my requirements - Buy-To-Let, for Student tenant occupiers only. At which point I proceeded with instructing my solicitor, and placing deposits (non-refundable) with the estate agents to hold the flats, and paying mortgage broker fees.

Two weeks later, I was informed by the mortgage broker that the lender would not offer mortgages due to the fact that the flats were to let to the student market only (a potential risk to mortgage lender in case of repo.).

By this time, I had already paid £1300 broker fees, incurred legal fees of £900, and paid £2000 in deposits to the estate agent - my total loss was £4200.

Immediately the broker blamed the estate agents (there were two separate parties) suggesting they had not made it clear enough of the Student-let only restriction. In fact they had.

I made a complaint to the broker in writing highlighting that I opted to purchase the flats based on their recommendation - the mortgage met my needs. But as I was not offered the mortgage, I lost my hard earned money £4200 (6 years work at staples being a student). As a gesture of goodwill the brokers offered to refund their charges of £1300, not admitting any liability.

Do I accept or do I request they compensate for the other losses?

Please let me know what you guys think in any case, I would massively appreciate your views......

BrokeBuffFatBoy :C

dunstonh

As a gesture of goodwill the brokers offered to refund their charges of £1300, not admitting any liability.

A refund of most or all the fee is the norm when a case doesnt go ahead.

Do I accept or do I request they compensate for the other losses?

Its not their responsibility that you instructed people too quickly. You should have waited a week or two longer until the lender had given a yes decision. The UK system is a bit flawed on this basis that you can end up incurring costs if the property doesnt go through. However, thats one of the risks that happens. Has the mortgage adviser been able to get alternative borrowing arranged?