Feel ripped off by Connells...

secret_sam007

I recently tied up a quick (perhaps too quick!) mortgage with a mortgage advisor with Connells - I dont have a tight fanancial situation, and I didnt need to borrow to my limit either.

I specifically asked if there were no early redemption fees and if it would be totally cost-neutral to me (compared to getting the same product off the high-street) and was assured that all fees were paid for by the mortgage company. (I probably should have walked at that point and just done the research myself, but he was very convincing!).

Anyway to cut a long story short he recommended a good mortgage product (better than the one that I was looking at anyway), and reading the sheet his fees (£1000) were indeed paid for by the mortgage company...

He mentioned that they had to do a survey via Connells, instead of via the mortgage company...what he DIDNT mention was that the mortgage company offered a completely free valuation survey, wheras Connells charged £450 for the exact same service!

I wouldnt have found any of this out (or be so !!!!!! off!) if they hadnt apparently not sent my completed application it onto the mortgage company..
(its still not there, after being due there weeks ago!!!)
I only found that out when I called the mortgage bank directly, as I found it really difficult "post sale" to get hold of my mortgage advisor at all...!
Oh, and apparently I dont get a copy of the mortgage-evaluation letter either for some strange reason (the seller's mortgage comany delivered me a courtesy copy within 24 hours!)

Any suggestions what to do here?
I feel that Ive had pretty poor service from Connells here (how hard is it to get a status check on your mortgage and contact your lendees!?)
and more to the point I feel like Ive been ripped off to the tune of £450 here...

If Id been told up front, "it will cost you £450 extra on the house evaluation" then I wouldnt have minded (although I may have walked).

Any suggestions here, or is this just "business as normal" with mortgage advisors..?? (Ive never used one before, and Im finding them just "speed-bumps" - slowing down the mortgage process - it was far easier & quicker last-time dealing with a bank-directly after doing my own research!)

Yours,
Mark

tcall

Are you sure £450 was for a valuation?
Sounds like it was for a survey to me, which is different.

MortgageMamma

Hi Sam

It seems to me that you have not had the process, fee's or service explained to you properly. Did the MA from connells give you an initial disclosure document? this should have detailed the fee's that Connell's would be charging you. Regarding the mortgage, you should have had a written quote given and explained to you. This is called a key facts document and any valuation charges etc should be explained in there at point 8 - what fee's must you pay.

I must say, without knowing all the facts I admit, it seems like you have had a shoddy service from Connells. My advice is that you should address this with them in writing, stressing you should not be financially inconvenienced due to their lack of professionalism.

If you can see a another whole of market mortgage advisor then please do. There are plenty of us around that won't charge you a fee and are happy to work for commission only. Don't let this one bad experience of mortgage advice put you off for life. There are plenty of excellent advisors around and dependant upon your area I may well be able to recommend someone to you. if you find a good advisor that you are comfortable with then stick with them.

HTH and GL

MortgageMamma

BTW, AndrewSmith knows a lot about Connell;s and the group they belong to. I'm sure if you try and keep this post near the top of the forum he'll give you his opinion when he's online.

dunstonh

£450 certainly sounds closer to a full survey rather than a valuation for mortgage purposes. Chances are the lender would have done their own valuation regardless of a full survey being done.

The vast majority of mortgage advisors do a fantastic job, speed the process up, help when there are issues and get the right mortgage arranged for you.

It would be wrong to tarnish everyone with the service of one individual. Every industry and profession, including doctors, teachers etc have bad apples. It would be foolish to think that financial services would be different.

homer_j_3

Connells are part of the Skipton group and to be honest. I would avoid using mortgage advisors that are tied to estate agents full stop.

He mentioned that they had to do a survey via Connells, instead of via the mortgage company...what he DIDNT mention was that the mortgage company offered a completely free valuation survey, wheras Connells charged £450 for the exact same service!

What was his reasons for this? Did he explain why?

I dont think that you would have got the same type of survey with a mortgage company for this fee, however, I do not know the value of the property in question but with a procuration fee (mortgage companies commisison payment) of £1000 then I guess you could have a fairly large mortgage.

If your property value is over a certain amount then some companies free valuation does not apply so you end up having to pay yourself an additional amount. Clearly without full details all we can do is try and second guess what may have gone on

Anyway, as MM says, you need to put your concerns in writing to the advisor and ask for a full written response in line with their internal complaints procedure.

Before you do this though it may be worth talking to the adviser to understand why he has done what he has done. If you post back with this then we can give our take on it and try to help you progress it?

payless

Did you buy thro' the same agency ( ie did one part of the group arrange a survey on a property sold by their sister estate agency... did the lender rely on this for their valuation?

Wonder if the mortgage adviser needed to disclose this cost as part of his IDD - (as a fee paid to an associate firm rather than the lender )

dunstonh

homer has a good point on the mortgage valuation. It could be an lenders fee due to valuation of property or perhaps the property is non-standard. Payless also has made a good point in that the valuation/homebuyers report/survery, whichever it was, is not a mortgage advice fee but a service provided by a third party.

Secretsam, can you clarify what type of valuation report it was? Did you get a copy?

payless

Dun.. actually I was playing it the other way... being an associated company RATHER than a thirds party !

dunstonh

Its associated but its a cost not incurred under the advice process. Therefore it doesnt need to be included on the IDD. I suppose a bit like a bank salesman selling a personal loan.

payless

I would say that this would be the case if the consumer had choice,but if its sold as part of the deal,

He mentioned that they had to do a survey via Connells, instead of via the mortgage company...

then surely its a fee that should be disclosed

Also would be interested where it was disclosed on the KFI